The lean hog market closed significantly lower with the 2019 contracts generally losing ground on nearbys. Cattle futures closed mixed in the live market and moderately lower in the feeder trade.
The cash cattle trade proved to be very slow in developing this week. In fact, several areas are still trying to prime the pump in terms of trade volume. At this time, light trading is evident in parts of the North with dressed deals marked at $180, $2 to $6 higher than last week’s weighted averages. On the other hand, the South remains at a standstill. Bids have improved some, but still remain $4 to $5 under asking prices of $114 to $115.
Such sticky movement reminds us of the slow trade volume experienced last Friday. We assume that more business will develop later Friday. The National hog base closed off $1.18 compared with the Prior Day settlement ($64-$70, weighted average $70.95).
From Friday to Friday, livestock futures scored the following changes: Aug LC up $4.37; Oct LC up $2.88; Aug FC up $2.95; Sep FC up $3.48; Aug LH off $3.70; Oct LH off $4.03.
Corn futures closed 4 cents higher, supported by technical-buying and signs of a weakening dollar. The stock market closed slightly lower with the Dow off 6 and the Nasdaq down 5.