GENERAL COMMENTS: Strong buyer support is moving through cattle trade with feeder cattle futures posting strong triple-digit gains in several contracts. The underlying support helped spark buying into live cattle markets, despite the lack of active support. Hog futures eroded, as position taking focused on adjusting price levels after strong earlier gains. Corn futures are lower in light activity. May futures fell 1/4 cent per bushel. Dow Jones Index is 29 points lower with Nasdaq up 9 points.
CASH MARKETS: Cash market information is still quiet with a few cattle priced at $130 and higher live and $210 per cwt dressed through the day. This is leaving little direction as bids are undeveloped and may not be seen until late Wednesday or later. National Daily Direct afternoon hog report is $1.20 higher with a weighted average of $57.46 per cwt. Full range of $52.00 to $60.00 per cwt on 6,375 head sold.
LIVE CATTLE: Live cattle futures followed feeder markets higher as active buyer support stepped into the complex ($0.15 to $0.80 higher). April live cattle futures led the complex higher with increased underlying support moving through the complex. This pushed prices back above $129 per cwt but well within the current trading range that prices have hovered in since March 1. The lack of underlying support at this point to break through long-term resistance levels of $130 per cwt may limit further buying later in the week. Beef cut-outs: higher, $1.25 higher (select, $219.46) and up $1.00 (choice, $229.33) with light demand and moderate offerings, 121 loads (67 loads of choice cuts, 24 loads of select cuts, 12 load of trimmings, 19 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL: Steady. Sluggish interest is expected to continue midweek with limited interest seen from asking prices or bids early Wednesday morning. It is expected to be late in the week before trade develops.
FEEDER CATTLE: Strong underlying support swept through feeder cattle trade, expanding early week gains ($0.60 to $2.20 higher). April feeder cattle futures have tested early March highs with futures closing at $147.80 per cwt as renewed support is moving through the complex. The concern of winter weather and flooding is helping spark increased buyer activity. However, at this point there is little to no accurate numbers of cattle affected by the recent events. This could continue to keep feeder cattle markets unsettled over the next several weeks. CME cash feeder index for 3/18 is $137.67 up $0.17
LEAN HOGS: Light pressure moved into lean hog trade as the aggressive weeklong rally ran into resistance at higher price levels ($0.10 to $1.12 lower). Strong previous buyer support still has the market extremely firm, although the inability to continue higher price levels focused more on price adjustment than market direction. Traders seemed to run out of air at the higher price levels, allowing narrow market losses in nearby contracts while deferred futures have posted more aggressive pressure, despite limited volume. Pork cutouts have gained additional support with firm primal gains in all markets. Pork cutout values added $1.75 per cwt, moving to $74.14 per cwt on 344 loads.CME cash lean index for 3/15 is $56.54, up $1.14. DTN Projected lean index for 3/18 $57.54, up $1.00.
WEDNESDAY'S CASH HOG CALL: Steady to $2. Limited additional direction is expected to develop midweek with most bids expected steady to $1 per cwt early morning. Packers continue to focus on the support in margins and cutout values, which is helping spark renewed overall interest. Tuesday slaughter is expected at 467,000 head. Saturday runs are expected at 164,000 head.
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