CLOSING LIVESTOCK COMMENTS
Rick Kment, DTN Analyst
GENERAL COMMENTS: From Friday to Friday, livestock futures scored the following changes: June LC, up 1.17; Aug LC, up .67; Aug FC, up 1.18; Sep FC, up .97; June LH, up 3.35; July LH, up 2.33. Light cattle trade developed in parts of the North with most dressed deals marked at $199 to $200, roughly $1 to $2 lower than last week's weighted average basis Nebraska. Final trade volume totals were relatively small, suggesting feedlots will carry over significant numbers into next week. According to the closing report, the Iowa hog base closed .11 lower compared with the Prior Day settlement ($83.78-93.00, weighted average $90.21). Corn futures settled mostly 1 to 3 higher; spot July was 4 3/4 lower.
LIVE CATTLE: Futures closed higher, up 102 to 145. Capping a volatile week, live cattle contracts closed with triple-digit gains. Short-covering in light trade volume seemed to be the primary explanation. Many players were absent due to the holiday. The premium status of the cash trade and ideas of post-holiday convergence also worked to support the board. Beef cut-outs: lower, down 2.50 (choice, $208.87) to down 1.08 (select, $190.44), with light demand and offerings (41 loads of choice cuts, 33 loads of select, 10 loads of trimmings, 25 loads of coarse grinds).
TUESDAY'S CASH CATTLE CALL: Steady to $1 lower. Packers should start work following the holiday needing cattle. On the other hand, showlists are expected to be larger given limited trade volume this week and the seasonal increase in fed offerings.
FEEDER CATTLE: Futures closed higher, up 162 to 190. Feeder cattle contracts were pressured throughout the week, setting new contract lows in multiple sessions. Therefore it was not surprising today to see specs take profits, forcing prices to close with triple-digit gains. Spillover buying from the live pit was also a positive factor. CME cash feeder index: 05/23: 131.67, up .17.