Tuesday Closing Livestock Market Summary - Hog Futures Settle Widely Mixed

GENERAL COMMENTS

The cash cattle trade remained generally quiet through the day with just a few odds and ends reported by Mandatory. For the most part, bids and asking prices stayed hidden. According to the closing report, the national hog base is $0.50 higher ($51-$60, weighted average $58.86). The corn trade scored solid gains, advancing 4-5 cents with the help of an extended hot and dry forecast for Brazil. Equities closed on a mixed basis with the Dow off 64 points and the Nasdaq up 64.

LIVE CATTLE

Generally speaking, live contracts closed moderately lower, off 27 to 70. The board's inability to move toward spot cash continues to be discouraging. Positively, spot June did manage to close 200 points above session lows. Beef cut-outs: sharply higher, up $2.01 (choice: $226.43) to $2.30 (select: $207.09) with moderate-to-good demand and light-to-moderate offerings (45 loads of choice cuts, 40 loads of select cuts, 5 loads of trimmings, 19 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Cattle buying interest could start to improve at midweek, at least in terms of more preliminary bids on the table. Similarly, we should start to see more definition in asking prices.

FEEDER CATTLE:

Feeder contracts closed 37 to 27 lower, checked by both eroding deferred live cattle futures and higher corn prices. Note that July corn closed Tuesday at its highest level in eight months (i.e., $4.056). 04/30: $139.27, off $0.04.

LEAN HOGS:

Lean issues closed widely mixed, ranging from 150 higher in June to 1022 lower in December. Bull-spreading interest should increase if seasonal fundamentals follow the typical pattern over the next 30-60 days. It would appear that some have been alerted to the historically narrow spread between June and October. Tuesday the former gained 120 points while the later lost 102. Carcass value closed moderately higher, supported by better demand for butt, picnics and ribs. Pork cut-out: $69.16, up $0.43. CME cash lean index for 04/27: $62.20, up $0.45 (DTN Projected lean index for 04/30: $62.45, up $0.25).

WEDNESDAY'S CASH HOG CALL:

Steady to $1 higher. Cash bids should be steady/firm in the morning. There are some tentative signs that fundamentals are improving.