For the most part, live and feeder contracts closed solidly higher, supported by short-covering and constructive fundamentals. Lean hog issues settled on a mixed basis with well-supported spot Feb gaining on deferreds.
Activity in feedlot country Monday was limited to the distribution of new showlists. Ready numbers appear to be tighter in the South and larger in the North (especially in Nebraska).
While asking prices were poorly defined, we assume that bullish producers will be thinking at least $2-$3 higher (e.g., $115 basis the South) in the wake of last week’s cash success. According to the closing report, the national hog base is $0.11 higher ($45.00-$53.50, weighted average $53.04).
The corn market drifted 2-3 cents lower on the close, pressured in part by beneficial rains in Argentina over the weekend. The Dow closed 39 points higher with the Nasdaq up 20.