Tuesday Closing Livestock Market Summary

Closing Comments 

Cattle buyers and sellers spent more time Tuesday focused on the board than each other. Neither bids nor asking prices were well defined with many simply waiting for the dust to settle following Monday's tumble in futures. According to the closing report, the national hog base is $0.22 higher ($49.00-$55.00, weighted average $53.67). Corn futures settled 5-6 cents higher, boosted by cool and wet forecasts over large portions of the Corn Belt and threats of planting delays. The stock extended its earnings-based rally Tuesday with the Dow up 200 points and the Nasdaq better by 41.

LIVE CATTLE

Live futures reclaimed a good deal of ground lost on Monday, closing 82 to 112 higher. The recovery was tied to short-covering, signs of seasonal beef demand, and the large status of feedlot premiums. Beef cut-outs: significantly higher, up $0.34 (choice, $219.01) to $1.98 (select, $206.27) with moderate-to-good demand and moderate-to-heavy offerings (62 loads of choice cuts, 32 loads of select cuts, 22 loads of trimmings, 25 loads of coarse grinds).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 higher. We could start to see a few preliminary bids at midweek. Remember, it's been a week since the cash trade was significantly tested.

FEEDER CATTLE

Feeder issues closed moderately higher, up 22 to 97. This market lost a step or two on live counterparts, perhaps chastened a bit but the substantial jump in the corn market. CME cash feeder index: 04/24: $139.31 off $0.10.

LEAN HOGS

Hog futures settled sharply higher, up 82 to 245, supported by ideas that both supply and demand realities were set to turn price friendly over the next 30-60 days. Summer contracts closed back above moving average highs. Although the board faces multiple layers of overhead resistance, Friday's lows definitely have the potential of representing spike bottoms. The carcass value continued to pull lower Tuesday, pressured by softer demand for bellies and loins. Pork cut-out: $73.82, off $0.67. CME cash lean index for 04/21: $60.49, off $0.61 (DTN Projected lean index for 04/24: $60.16, off $0.33).

WEDNESDAY'S CASH HOG CALL

Steady to $1 higher. Ready numbers do seem to be slowly tightening, a fact that could lend midweek cash a firmer undertone.