AFTERNOON LIVESTOCK COMMENTS
Rick Kment, DTN Livestock Analyst
GENERAL COMMENTS: Packer activity in cattle country was typically limited to the distribution of new showlists. The fed offering looks smaller in Texas, Nebraska and Colorado, but larger in Kansas. A few asking prices were suggested around $157-$158 in the South and $248-$250 in the North. According to the closing report, the Iowa hog base is 1.81 lower compared with the Prior Day settlement ($94.00-$102.50, weighted average $101.85). Corn futures generally settled a nickel lower as late-season growing weather continues to look benign. The stock market jumped higher as geopolitical tensions eased. The Dow closed up 175 points with the Nasdaq better by 43.
LIVE CATTLE: Futures closed up 25 to 100. Live contracts open with uneven profit taking, but eventually resumed the trail of recovery first cut last Thursday. While charts look for promising of a market bottom, upward potential continues to be checked by multiple layers of overhead resistance. Beef cut-outs: significantly lower (choice, $255.10, off 0.44; select, $246.57, off $1.81) with light to moderate demand and moderate offerings (77 loads of choice cuts, 38 loads of select, 14 loads of trimmings, 24 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady to $2 lower. Tuesday's cash market should be typically quiet with bids and asking prices poorly defined. Significant trade volume may not surface until Thursday or Friday.
FEEDER CATTLE: Futures closed up 80 to 155. Feeders rebounded along with their live counterparts, further supported by the premium of the cash index. On an estimated run of 4,500 head (i.e., near even with last week and down from 7,592 in 2013), Oklahoma City sold feeder steers and heifers steady to $4 higher. Steer and heifer calves were marked mostly $4-$6 higher. CME cash feeder index: 08/15: 220.75, off 1.46.