Tuesday Closing Livestock Market Summary

GENERAL COMMENTS

Cash market activity in feedlot country was limited to a few scattered deals in parts of the North, $l75-$177. Iowa reported some live biz at $110. While WTD volume doesn't seem enough to trend, the small early week sample certainly looks sharply lower than last week (e.g., as much as $5 lower on a live basis in the North). According to the closing report, the national hog base is $0.35 lower ($72-$78.75, weighted average $76.99). Corn futures cracked 7-8 cents lower as major growing areas continue to expect timely rains over the next week or so. The stock market closed mixed with the Dow up 5 points and the Nasdaq off 7.

LIVE CATTLE

Reacting to seriously oversold conditions, live cattle issues bounced sharply higher. But even though prices settled as much as 100 to 260 in the green, little was accomplished to alter the pronounced bearish profile of charts. Beef cut-outs: mixed, up $0.03 (choice, $198.95) to off $0.57 (select, $195.87) with light-to-moderate demand and offerings (52 loads of choice cuts, 36 loads of select cuts, 12 loads of trimmings, 20 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Generally lower than last week. Look for bids and asking prices to be better defined at midweek with moderate trade volume possible. Many showlists will start out priced around $115 in the South and $184-plus in the North.

FEEDER CATTLE

Feeder issues closed sharply higher (i.e., up 305 to 397), supported by short-covering, lower corn action and the premium status of the cash index. September and October managed to nose on the close just above 100-day moving averages. November settled above both 100- and 40-day moving averages. CME cash feeder index: 08/14: $145.32, off $0.58.

LEAN HOGS

For the most part, lean futures settled 35 to 135 higher with the two front months leading the bullish charge. New spot October enjoyed an excellent debut as specs and commercials favorably upgraded its status relative to the tall premium of the cash index. Indeed, October managed to chin 70 (albeit still $14 below the cash index) for the first time since July 7. The carcass value closed lower with stronger demand for ribs and hams offset by lower picnic and belly price action. Pork cut-out: $94.11, off $0.33. CME cash lean index for 08/11: $84.78, off $0.47 (DTN Projected lean index for 08/14: $84.38, off $0.40).

WEDNESDAY'S CASH HOG CALL:

Steady to $1 lower. Anticipate another round of soft cash bids at midweek with buyers fairly confident of ample live supplies.