Monday Closing Livestock Market Summary - Cattle Futures End Lower

GENERAL COMMENTS: Strong pressure developed throughout livestock trade following continued weakness in lean hog futures Monday. Cattle trade softened on increased placements in February. Cash cattle activity was undeveloped following generally smaller trade levels late last week. Bids and asking prices were not available and may not be active until midweek. Showlist distribution and inventory-taking were the main activities Monday. Showlists appear generally larger. Offerings increased in Nebraska, Colorado and Kansas, but decreased in Texas. It is likely to be the last half of the week again before active trade develops. The National Daily Direct afternoon hog report was $2.55 higher ($60-$74, weighted average $68.82) on 7,248 head sold. Corn futures were higher in light activity with May up 1 1/2 cents per bushel. The Dow Jones Index was 14 points higher while the Nasdaq was down 5 points.

LIVE CATTLE: Nearby live cattle futures saw triple-digit losses Monday. Overall, futures closed $0.40 to $2.35 lower. All spring and summer contracts were $2 per cwt lower at closing bell. The softness in feeder cattle trade, combined with an increased number of cattle on feed, added uncertainty to the market, which already seemed to be teetering toward a pullback. Additional softness could be seen throughout the cattle complex, although live cattle futures are expected to hover within the same sideways pattern seen over the last couple of months. Beef cut-outs: mixed, up $0.09 (select, $218.73) to down $0.09 (choice, $229.09) with light demand and light-to-moderate offerings of 109 loads (70 loads of choice cuts, 17 loads of select cuts, 6 load of trimmings, 16 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL: Steady. Limited interest is expected Tuesday with bids and asking prices most likely not seen until Wednesday or later.

FEEDER CATTLE: The feeder cattle market was also under pressure Monday as traders focused on increased cattle placements. Futures closed $0.82 to $2.60 lower. Though the market was generally steady through most of the morning, strong pressure developed late in the day as traders focused on larger-than-expected placements and the pullback in lean hog trade. This pushed most contracts to triple-digit losses. CME cash feeder index for 3/21 is $141.02, up $1.90.

LEAN HOGS: Traders tried to find some stability in the lean hogs market, resulting in a mixed close of $1.45 lower to $$0.32 higher. Strong buyer support was seen early as traders moved back into the complex, but the support slowly eroded as deferred losses became more evident. Although the lean hog trade is expected to firm through the end of the spring and summer and growing pork demand is likely to firm cash markets, traders are quickly pulling back from previously aggressive gains. Wholesale pork values saw triple-digit gains in most primal cuts. Pork cutout values added $2.41 per cwt, moving to $80.20 per cwt on 243 loads. CME cash lean index for 3/20 is $60.75, up $1.53. DTN Projected lean index for 3/21 $62.41, up $1.66.

TUESDAY'S CASH HOG CALL: Steady to $2 higher. Moderate-to-firm bids are expected again Tuesday morning with most bids $1 to $1.50 per cwt higher as continued cash buying develops. Tuesday slaughter is expected at 477,000 head.

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