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Wednesday, April 23, 2014

AFTERNOON MARKET UPDATE; April 23

by DTN

CLOSING LIVESTOCK COMMENTS
Rick Kment, DTN Livestock Analyst

GENERAL COMMENTS: The cash cattle trade remained untested at midweek with just a few preliminary bids thrown on the table. For example, Northern producers saw bids around $232 to $233, well below general asking prices of $237 to $238. According to the closing report, the Iowa hog base is $0.48 higher compared with the Prior Day settlement ($105.00-$124.00, weighted average $116.20). Corn futures rose again, up 7 1/4 in May, up 7 1/2 in July, up 8 1/4 in Sep and up 8 3/4 in Dec.

LIVE CATTLE: Futures closed higher, up 12 to 52. Live cattle futures opened lower thanks to an early round of profit-taking. However, buying interest quickly resurfaced, supported by further evidence of seasonal beef demand and spillover buying interest from the lean hog pit. Beef cut-outs: higher (choice, $231.21, up $2.15; select, $219.62, up $1.55) with moderate to fairly good demand and light offerings (51 loads of choice cuts, 45 loads of select, 5 loads of trimmings, 16 loads of ground beef).

THURSDAY'S CASH CATTLE CALL: Steady to $1 lower. Packer inquiry could improve further on Thursday, but significant trade volume may be delayed once again until Friday. For the first time in several weeks, producers seem to have a decent shot at holding the country trade near steady.

FEEDER CATTLE: Futures closed higher, up 17 to 32. Feeder cattle closed moderately higher, supported by higher action in the lean hog pit as well as new reports of impressive price strength at local auctions. CME Feeder Cattle Index 04/22 177.35, up 0.22.