Tuesday Closing Livestock Market Summary - Summer Hog Futures Roar Back From Holiday

GENERAL COMMENTS

Off to a holiday-delayed start, feedlot country restricted efforts to the distribution of new showlists. Ready numbers appear to be generally larger than last week, especially in Nebraska and Kansas. According to the closing report, the national hog base is $.51 higher ($58.00 to $67.00, weighted average $65.59). The corn market broke as much as 6 cents Tuesday, pressure by rain in the forecast for major growing areas this week and some commercial selling. The stock market closed lower with the Dow off 391 points and the Nasdaq down by 37.

LIVE CATTLE

With reports of weekend beef clearance coming in mixed at best, lean futures felt obligated to quickly surrender some of last week's rally. Also, lower dressed sales in feedlot country late Friday didn't help. Live contracts closed $52 to $152 lower with most of the selling interest focused on the front-end. Beef cut-outs: mixed, up $.13 (choice: $227.56) to off $.97 (select: $203.65) with light to moderate demand and moderate to heavy offerings (48 loads of choice cuts, 39 loads of select cuts, 11 loads of trimmings, 10 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Bids and asking prices could start to surface at midweek, but significant trade volume will probably be delayed until Thursday or Friday.

FEEDER CATTLE:

Feeder traders were torn between defensive action in the live market and lower action in the corn trade. Prices settled on a mixed basis, up $27 to off $40. 05/28: $135.04, up $.58.

LEAN HOGS:

Back from the holiday, hog bulls are apparently eager to once again try pushing summer lean contracts back through the upper 70s. Barring a big surprises, fundamentals should be consistently constructive from now through midsummer. Yet the cash index remains at a decent discount to the board. The board may prove high enough to accommodate even bullish supply and demand developments. Lean prices closed $50 to $147 higher with summer contracts leading the early week charge. The carcass value closed moderately higher, supported by better demand for processing items, ribs, and picnics. Pork cut-out: $76.34, up $.74. CME cash lean index for 05/25: $69.46, up $.02 (DTN Projected lean index for 05/28: NA).

WEDNESDAY'S CASH HOG CALL:

Steady to $1 higher. Cash hog buyers should resume work at midweek with a firm undertone, betting that post-holiday fundamentals will continue to improve.