GENERAL
COMMENTS: Livestock futures traded in a wide range Friday. Lean hogs
futures moved from early limit gains to aggressive losses through the
morning, but stability returned Friday afternoon and prices settled
mixed at closing bell. Cattle markets were also affected by the
volatility in lean hogs. From Friday to Friday, livestock futures scored
the following changes: Apr LC up $0.63; Jun LC up $1.58; Mar FC up
$1.68; Apr FC up $1.88; Apr LH up $9.53; May LH up $9.13. Cash cattle
trade started to slowly develop Friday with trade extending into late
afternoon and potentially Friday evening. The cash trade that has
developed so far is seen at $128 to $129 live basis, which is $1 to $2
per cwt higher than last week. Dressed trade developed at $208 through
the north, which is $4 per cwt higher than week-ago levels. The National
Daily Direct afternoon hog report was $3.29 higher ($56-$71.50,
weighted average $66.44) on 6,234 head sold. Corn futures were higher in
light activity with May up 2 cents per bushel. The Dow Jones Index is
460 points lower with the Nasdaq down 196 points.
LIVE CATTLE: Narrowly mixed trade left cattle
markets directionless Friday ($0.40 lower to $0.40 higher). Live cattle
trade struggled to find any sense of market support despite initial
market gains through the complex. The lack of underlying support in beef
values listed in the morning report as well as general shift in hog
market direction seemed to cause most traders to hunker down and focus
on market stability through the end of the week. Beef cut-outs: mixed,
$0.27 higher (select, $218.64) and down $0.22 (choice, $229.09) with
light demand and light to moderate offerings, 72 loads (43 loads of
choice cuts, 8 loads of select cuts, 8 load of trimmings, 13 loads of
coarse grinds).
MONDAY'S CASH CATTLE CALL: Steady. Packers and
feeders will start over Monday morning following late-day trade Friday,
which pushed cash markets higher. Monday's session will be focusing on
showlist distribution and inventory-taking.
FEEDER CATTLE: Early support in feeder cattle
gave way to a mixed close ($0.12 lower to $1.42 higher). Nearby
contracts were narrowly mixed with limited interest developing through
the entire complex. The USDA Cattle on Feed report, released following
the market close, is expected to limit support early next week following
cattle placement levels of 102%, which was 6% above early estimates.
CME cash feeder index for 3/21 is $141.02, up $1.90
LEAN HOGS: Wide price shifts left hog markets
vulnerable and will likely lead to further uncertainty next week.
Futures closed $1.35 lower to $1.07 higher. Sharp gains developed early
Friday, as traders took advantage of another day of expanded trading
limits. But once initial buying slowed, pressure quickly developed,
resulting in several summer contracts traded in a $6.50- to $7-per-cwt
range during the session. This may be the widest one-day market shift in
the lean hog complex since expanded limits were introduced. Light
buying trickled into the market late in the session, leaving futures
mixed, but avoiding a disastrous meltdown at the end of the week.
Continued price support moved into wholesale pork values with
triple-digit gains seen in most primal cuts. Pork cutout values added
$1.54 per cwt, moving to $77.79 per cwt, on 336 loads. CME cash lean
index for 3/20 is $60.75, up $1.53. DTN Projected lean index for 3/21
$62.41, up $1.66.
MONDAY'S CASH HOG CALL: Steady to $2. Firm
follow-through support is expected to develop early next week despite
the pullback in futures at the end of the week. Monday slaughter is
expected at 477,000 head.
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