The cash cattle market Friday was very slow with just a handful of sales reported in parts of Nebraska. Trade volume totals look no better than moderate for the week, suggesting that feedlot managers will be offering a plate of leftovers when trade resumes after July 4th. The national hog base closed off $1.28 compared with the prior day settlement ($82-$88, weighted average $85.76). From Friday to Friday, livestock futures scored the following changes: Jun LC off $0.10; Aug LC up $1.03; Aug FC Up $2.97; Sep FC Up $3.62; Jul LH Up $5.32; Aug LH Up $5.10. Corn futures closed 11 cents higher, ignoring a larger-than-expected planting total. The stock market closed mixed with the Dow up 62 and the NASDAQ off 3.
Futures closed mostly higher up 97 to off 110. Spot June expired Friday at $119.10, converging very close to most of this week's live business. New spot August will take the lead on Monday, discounted about $3 from the five-area steer average. The board did seem to find some stability this week, above the lows of last week. Yet the question remains of whether or not August and October are discounted enough given expectations of large third-quarter beef supplies. Beef cut-outs: lower (choice, $224.73 off $1.82, select $208.42 off $1.74) on light-to-moderate demand and moderate to heavy offerings (57 loads of choice cuts, 35 loads of select cuts, 10 loads of trimmings, 20 loads of coarse grinds).
MONDAY'S CASH CATTLE CALL:
Steady to $2 lower. Monday will be typically slow with packers focusing exclusively on the distribution of new showlists. Our guess is that it will take until Wednesday or Thursday to gage the success of holiday meat clearance.
Futures closed higher with deferred contacts gaining triple digits. Feeders were supported by further strength in deferred live contracts as well as the premium of the cash index. CME cash feeder index: 06/29: $149.23, up $0.53.
Futures closed modestly to sharply higher, up 30 to 300. Apparently, many traders believed strong pork demand and the addition of several major packing houses will be more than sufficient to handle the likelihood of record pork production that was pretty much guaranteed by the USDA Hogs and Pigs report. Once again spot July stet a new contract high, surging over 90.00 thanks to the on-going strength of the cash index and signs of appreciating carcass value. Pork cut-out: $102.92 (FOB Plant) up $0.60. CME cash lean 06/28: $91.66, up $0.16 (DTN Projected lean index for 06/29: $91.72, up $0.06).
MONDAY'S CASH HOG CALL
Steady to $1 higher. Look for early week cash to be steady/firm, though buyers could be relatively cautious until work resumes in full force following the holiday.