GENERAL COMMENTS: Nearby lean hog futures saw moderate pressure Monday as traders started adjusting positions following last week's rally. Futures were mixed throughout the rest of livestock markets. Cash markets were undeveloped with bids and offers still unavailable. This is expected to be the situation until midweek or later. The National Daily Direct afternoon hog report was $0.38 lower ($67-$78, weighted average $75.40) on 8,347 head sold. Corn futures were lower in light-to-moderate trade with May down 2 1/2 cents per bushel. The Dow Jones Index was 83 points lower with the Nasdaq up 15 points.
LIVE CATTLE: Live cattle futures were under pressure early, but settled mixed ($0.25 lower to $0.90 higher). Moderate-to-strong support developed in the last two hours of trade, although there was little change in nearby contracts. Lightly traded April slipped lower, while summer contracts saw narrow-to-moderate gains. The most significant support developed in late-2019 and early 2020 contracts. Beef cut-outs: higher, up $0.60 (select, $220.88) to up $1.74 (choice, $228.67) with good demand and moderate offerings, 117 loads (61 loads of choice cuts, 25 loads of select cuts, 8 load of trimmings, 22 loads of coarse grinds).
TUESDAY'S CASH CATTLE CALL: Steady. Limited activity is expected through the early part of the week. Showlists were distributed with offerings generally mixed. Bids and asking prices are not likely to be seen until later in the week.
FEEDER CATTLE: Feeder cattle trade was mixed early, followed by late-day buying. Futures closed $0.35 to $0.97 higher. Follow-through pressure was seen Monday morning, but renewed support in live cattle trade and the ability to spark some interest in deferred summer feeder cattle futures allowed for increased momentum through the entire complex. There are signs slow but steady gains could redevelop in cattle trade over the next couple of weeks. CME cash feeder index for 4/5 is $143.30, down $0.79.
LEAN HOGS: Lean hog futures settled $1.55 lower to $1.10 higher. Nearby contracts were under pressure Monday morning as traders adjusted positions and took profits following a $10 rally last week. Meanwhile, follow-through buying was seen in late-2019 and 2020 contracts. The tone of the market remains strong. Even though no significant developments came out of the China-U.S. trade talks last week, traders remain hopeful that continued talks will result in long-term demand. Pork cutout prices bounced higher following last week's futures market support and expectations for further support. Pork cutout values up up $1.45 per cwt, moving to $83.29 per cwt on 190 loads. CME cash lean index for 4/4 is $78.53, up $0.27. DTN Projected lean index for 4/5 $78.68, up $0.15.
TUESDAY'S CASH HOG CALL: $1 lower to $1 higher. The separation between spot markets and deferred futures continues to limit price movement. This added volatility is likely to keep most bids steady to weak Tuesday. Tuesday slaughter is expected at 475,000 head.
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