John Harrington, DTN Market Analyst
GENERAL COMMENTS: Cattle market activity was typically limited in the early rounds to the distribution of new showlists. Ready numbers look mixed in the South and some smaller in the North. Overall, the fed offering appears to be a bit smaller than last week. A few asking prices were tossed out around $150-$152 in the South and $142 to $144-plus in the North. According to the closing report, the Iowa hog base compared with the Prior Day's closing weighted average is $1.15 higher ($98.00 to $111.00, weighted average $108.44). Corn futures closed as much as a dime lower, pressured by China demand concerns and a general lack of new buying interest. U.S. stocks fell on Monday as a deceleration in China's exports had investors fretting about the health of the global economy. The closed 34 points higher with the Nasdaq off 1.LIVE CATTLE: Futures closed mostly 35 to 60 higher. Spot April remained checked by cautious risk managers nervous about the sustainability of beef demand and closed 10 points lower. Yet the rest of the pit finished moderately higher, supported by short covering and spillover buying from the lean hog pit. Beef cut-outs: sharply higher (choice, $238.90, up $2.88; select, $235.99, up $3.12) with moderate demand and light offerings (53 loads of choice cuts, 21 loads of select, 13 loads of trimmings, 19 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady to $2 higher. Tuesday should be typically slow with bids and asking prices remaining poorly defined until the second half of the week.
FEEDER CATTLE: Futures closed up 120 to 215. Feeder futures surged sharply higher to start the week with bulls scoring another heaping plate of new contract highs. The big creak in corn prices worked to stimulate early week buying interest. On an estimated run of 9,800 head (up from 2,203 last week and about even with 2013), Oklahoma City sold replacement steers steady to $2 higher. Heifer mates were marked steady to $3 higher. CME cash feeder index: 03/07: 173.34, up 1.10.