Monday Closing Livestock Market Summary - Livestock Contracts Close Lower in All Corners

GENERAL COMMENTS

The cash cattle market began the week in slow motion as packers moved to gather new showlists. The early June offering appears to be larger than last week. According to the closing report, the national hog base is $.54 higher ($63.00 to $71.50), weighted average $70.07). The corn market stumbled into the week with losses of a dime or more. While it remains dry in Brazil, impressive crop ratings in the U.S. have pushed bears into the driver's seat. The stock market closed higher with the Dow up 178 points and the Nasdaq better by 52.

LIVE CATTLE

Live futures were literally all over the board Monday with bulls cheering one minute and bears cheering the next. However, when the last twist and turn was taken, live issues settled mostly 17 to 117 lower. The extreme choppiness was probably a good reflection of the trade's indecision going into early summer. Is the cash market too high or is the board too low? Beef cut-outs: higher, up $.04 (choice: $227.57) to $1.45 (select: $206.25) with moderate to fairly good demand and moderate to heavy offerings (50 loads of choice cuts, 42 loads of select cuts, 18 loads of trimmings, 17 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady. Look for bids and asking prices to stay poorly defined Tuesday with significant trade volume probably delayed until the second half of the week.

FEEDER CATTLE:

Theoretically, the sharp break in corn prices should have lent the feeder trade some stability. The fact that it did not underscores the significance of softer deferred live futures, as well as the deep discount of the cash index. On an estimated run of 12,500 head (up from 9,423 last week and 9,269), Oklahoma City sold feeder steers and heifers $3 to $7 higher than two weeks ago. 06/01: $139.23, up $3.06.

LEAN HOGS:

Lean futures closed 2 to 185 points lower with late summer contracts losing ground to both spot June and the far deferreds. June was supported somewhat by evidence of a quickly rising cash index. July finished just above its 40-day moving average, while August closed well below its 40-day moving average. Carcass value closed moderately higher, supported by all primals except the loin. Pork cut-out: $77.16, up $.84. CME cash lean index for 05/31: $70.01, up $.38 (DTN Projected lean index for 06/01: $71.01, up $1.00).

TUESDAY'S CASH HOG CALL:

Steady to $1 higher. The cash hog market should open with steady/firm bids Tuesday morning as seasonal supplies continue to tighten.