Tuesday Closing Livestock Market Summary

GENERAL COMMENTS

Feedlot cash lacked definition Tuesday with most buyers and sellers remaining absolutely mum. A few showlists in the South were priced around $122. According to the closing report, the national hog base is $0.21 lower ($81-$86.50, weighted average $85.58). After trading as much as 14 cents higher early in the session, corn closed no better than 2-3 cents in the green. Despite lower crop ratings and forecasts of blistering temps, would-be bulls had a tough time maintaining enthusiasm. The stock market closed mixed with the Dow off 54 points and the Nasdaq up 29.

LIVE CATTLE

With live contracts swaying back and forth between rallies and crashes, trade behavior has once again confirmed the fact that this market is stuck in a range and going no place fact. After Monday's significant price advance, live contracts quickly reversed gears Tuesday to settle sharply lower. When the smoke cleared, issues closed off 100 to 187, weighed by aggressive long liquidation and uncertain cash prospects. Beef cut-outs: lower, off $0.56 (select, $195.25) to $1 (choice, $208.05) with light-to-moderate demand and moderate-to-heavy offerings (71 loads of choice cuts, 51 loads of select cuts, 15 loads of trimmings, 20 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL: Steady. Look for bids and asking prices to become more evident in the morning with both side watching for early omens from the FCE auction. It's possible that significant trade volume will not develop until Thursday or Friday.

FEEDER CATTLE

Feeder futures also closed sharply lower, off 150 to 282. Besides reacting to the major retreating in the live market, selling here was also encouraged by the discount of the cash index and firming action in the corn market. CME cash feeder index: 07/17: $149.00, up $0.39.

LEAN HOGS

Lean futures closed with uneven prices ranging from 105 higher (i.e., midsummer 2018) to 27 lower. Given the way deferreds gained ground on nearbys, specs may be reassessing the exact wisdom of extreme discounts that have been long dialed into the back of the board. The carcass value closed modestly lower with softer loins, ribs and bellies overshadowing picnic and ham strength. Pork cut-out: $103.67, off $2.15. CME cash lean index for 07/14: $92.50, off $0.28 (DTN Projected lean index for 07/17: $92.46, off $0.04).

WEDNESDAY'S CASH HOG CALL: Steady to $0.50 lower. Hog buyers should make their rounds in the morning with steady/weak bids.