Monday Closing Livestock Market Summary - Limited Buying Keeps Hog Futures Above Contract Lows

GENERAL COMMENTS: Cattle markets saw firm buying activity Monday. Late-day buying in all contract months also seemed to stop the bleeding in the lean hog market just enough to keep the April contract from closing at contact lows. Cash cattle activity followed the normal Monday routine with asking prices and bids unavailable and likely to remain quiet until midweek or later. Showlists seem to be generally smaller with increased offerings in Colorado, while all other areas are posting smaller lists of market-ready cattle. The National Daily Direct afternoon hog report was $0.50 lower ($45-$49.50, weighted average $48.88) on 7,523 head sold. Corn futures were lower in light activity with the March contract down 1 1/4 cents. The Dow Jones Index was 53 points lower with Nasdaq up 9 points.

LIVE CATTLE: Light gains developed in live cattle late Monday following early market pressure. Futures closed $0.22 to $0.57 higher. Most nearby contracts hit contract highs. Traders focused on gains in beef values early Monday and on elevated cash cattle moves. Beef cut-outs: higher, up $2.69 (select, $213.86) to up $1.53 (choice, $216.88) with good demand and light offerings on 78 loads (48 loads of choice cuts, 14 loads of select cuts, 7 load of trimmings, 9 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL: Steady. Following the firm market gains late last week, cash cattle markets are expected to remain delayed until midweek or later. Bids and asking prices are expected to be unavailable early in the day Tuesday, although the tone of the market is firming.

FEEDER CATTLE: Light buying interest moved back into the feeder cattle trade Monday as traders continue to focus on bullish beef values and lower grain prices. Futures closed $0.47 to $0.77 higher. April through August contracts held firm gains of 72 to 77 per cwt in light trade. Additional support may be seen later in the week. CME cash feeder index for 2/8 is $141.73. up $0.04.

LEAN HOGS: Late-day buying pushed lean hog futures off of long-term lows. Futures closed mixed, $0.27 lower to $1.45 higher. Traders closely followed the April lean hog futures trade Monday as the contract broke through long-term support early and posted contract lows through the morning. Following a 65-cent late-day rally, the April futures contract closed at $59.07 per cwt. May through August futures posted triple-digit gains as traders covered short positions seen over the last week, focusing on increased support possible through the week. Firming pork values Monday are helping to stabilize a still-weak pork complex. Pork cutout values added $0.64 per cwt, moving to $65.46 per cwt on 266 loads. CME cash lean index for 2/7 is $56.53, down $0.36. DTN Projected lean index for 2/8 $56.14, down $0.39.

TUESDAY'S CASH HOG CALL: Steady to $1 lower. Market direction is not changing early in the week with bids expected to be scattered through the range early Tuesday, although most bids are likely to settle out steady to weak. Tuesday slaughter is expected at 477,000 head.

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