Feedlot country saw a typical round of "show and tell" with packers pretty much collecting showlists and going home. The new offering is mixed with greater ready numbers in Colorado, fewer in Nebraska and Kansas, and about the same in Texas. According to the closing report, the national hog base is $1.64 lower ($75.00-81.50, weighted average $79.40). Corn futures closed generally 3 cents lower, checked by forecasts of relatively mild growing weather. The stock market closed mixed with the Dow posting a record high close at 21,891, up 60 points, and the Nasdaq finishing off 26.
Troubled by ideas of mounting beef tonnage through late summer and uncertain demand, live contracts closed lower at the conclusion of the week's opening round of CME business (i.e., off 27 to 90). Closing right at 112 (its poorest finish since April 24), spot August has fallen out of the lateral trading range held since late spring. Beef cut-outs: mixed, up $1.02 (select, $197.84) to off .47 (choice, $205.75) with light to moderate demand and offerings (63 loads of choice cuts, 18 loads of select cuts, 12 loads of trimmings, 20 loads of ground beef).
TUESDAY'S CASH CATTLE CALL:
Steady to $2 lower. Tomorrow should be typically quiet in cattle country with both bids and asking prices poorly defined. This lack of definition will probably characterize the trade until Wednesday or later.
Although significantly pressure along with their live counterparts in the early going, feeder contracts closed no worse than mixed (i.e., up 27 to off 80) thanks to late-session short-covering. Most months finished 100-150 points above session lows. On an estimated run of 2,782 head ( below last week's total of 3,948 and smaller than receipts of 5,439 in 2016), Oklahoma City is sold feeder steers and heifers on an unevenly steady basis. CME cash feeder index: 07/28: 150.41, up 1.07.
Lean hog futures closed generally 10 to 110 lower with spot August getting hit the hardest. Though deferred selling was relatively mild, October and December sank to their saddest settlement seen since April 24. Carcass value closed solidly higher with all primals contributing to the aggregate progress except the picnic. Pork cut-out: $99.66, up .91. CME cash lean index for 07/27: 88.75, off .64 (DTN Projected lean index for 07/28: 88.10, off .65).
TUESDAY'S CASH HOG CALL:
$1 lower. Look for opening bids in the morning to stay on the defensive with packers expecting ready numbers to grow.