Wednesday Closing Livestock Market Summary - Cattle Futures Just Can't Stop Bleeding

GENERAL COMMENTS

Light trade volume developed in most cattle-feeding areas as some producers reluctantly accepted lower packer bids. Most of the business in the South was marked at $115-$116, $6 to $7 lower than last week. Most of the dressed trade in the North ranged from $180-$185, $7 to $12 lower than last week's weighted average basis Nebraska. The National hog base closed up $0.13 compared with the Prior Day settlement ($58-$65.50, weighted average $64.61). Corn futures closed generally 3 cents lower, pressured by profit-taking and spillover selling from the bean market. The stock market closed higher with the Dow up 62 and the Nasdaq better by 46.

LIVE CATTLE

Futures closed lower, off 15-145. Although live futures briefly showed some stability in the early rounds, selling interest quickly resurfaced by midsession. CME bears continue to have no reluctance in leading late-spring and early summer cash lower. Beef cutouts: weak to lower (choice $231.03, off $0.61; select $208.50, off $1.01) on light-to-moderate demand and moderate offerings (54 loads of choice cuts, 38 loads of select cuts, 27 loads of trimmings, 15 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL:

Steady/weak with Wednesday's market. The late-week cash trade will continue to be defensive with packers mindful of both struggling futures and softer cutouts.

FEEDER CATTLE:

Futures closed lower, off 45-172. Needless to say, feeders continue to follow the bearish lead of their live counterparts. Note that spot May closed nearly $3 below the cash feeder index. CME cash feeder index: 05/15: $135.67, off $0.25.

LEAN HOGS:

Futures closed higher, up 20-117. Spot June and July received support from bull-spreading interest as well as improving fundamentals. Having said that, early summer premiums will require ongoing support from cash and product markets if they are to sustain these levels. Pork cutout: $74.39 (FOB plant), up $0.15. CME cash lean 05/14: $65.23, up $0.58 (DTN Projected lean index for 05/15: $66.14, up $0.91).

THURSDAY'S CASH HOG CALL:

Steady to $1 higher. Hog buyers should resume procurement chores on Thursday with steady/firm bids.