GENERAL COMMENTS:
Monday's trade was nearly a mirror image of the trade that developed throughout the livestock complex last Monday. Livestock enthusiasts are hopeful that the rest of the week can be as fruitful as last week was as well. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.43 with a weighted average of $96.37 on 7,869 head. May corn is down 5 3/4 cents per bushel and May soybean meal is down $5.90. The Dow Jones Industrial Average is up 98.49 points and NASDAQ is down 79.07 points.
LIVE CATTLE:
The live cattle contracts seem energized and ready to higher again this week. April live cattle closed $0.87 higher at $120.97, June live cattle closed $0.87 higher at $122.65 and August live cattle closed $0.60 higher at $121.47. It's comforting to see both boxed beef prices higher in Monday's close and to see Monday's slaughter pace chewing off a brisk movement as the cash cattle market needs to see higher trade again this week. The market's strong fundamentals make it a tough case for packers not to pay for more cattle, especially when they're being met with excellent beef prices. Monday's cash cattle trade was thankfully quiet as most Monday's are, but feedlots will have a hard time pushing packers to wait until later in the week to trade cattle as it's a shortened holiday week. Packers will most likely want to come in and get their business done early in the week, but in order for feedlots to see the market's strongest price point, waiting until later in the week usually serves them better. Monday's slaughter is estimated at 119,000 head, 3,000 head more than a week ago and steady with a year ago. Saturday's cattle slaughter was revised to 59,000 head, pushing the week's total to 649,000 head.
Last week's cash cattle trade totaled 99,682 head. Of that 64,241 head are committed for delivery in the next two weeks, while the remaining 35,441 head are scheduled for delivery in the following 15 to 30 days.
Boxed beef prices closed higher: choice up $1.87 ($239.53) and select up $4.73 ($232.50) with a movement of 96 loads (52.49 loads of choice, 13.63 loads of select, 16.58 loads of trim and 12.90 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: $2.00 to $3.00 higher. Hopefully there's no cash cattle that trade as early as Tuesday, but if there is, they will hopefully be $2.00 to $3.00 higher. With boxed beef prices wanting to rally, feedlots have a great opportunity to jolt the cash cattle market higher soon. Getting the cash cattle market to $120 as quick as possible needs to be a short-term goal for the feedlot sector.
FEEDER CATTLE:
The feeder cattle contracts kept rolling right through Monday's trade, not worried about a thing other than securing higher profits while the opportunity lasts. April feeder cattle closed $1.95 higher at $147.07, May feeders closed $2.32 higher at $152.20 and August feeders closed $1.55 higher at $160.00. Thankfully, both the corn market and live cattle market encouraged the feeder cattle contracts to trade higher, and so long as corn prices can keep trading steady to somewhat lower, and live cattle can continue to spur on the positive momentum fueling the cattle market, the market stands a chance at trading higher again this week. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week, at the midsession Monday, feeder steers and heifers were both cattle $3.00 to $7.00 higher. The CME Feeder Cattle Index for March 26: up $2.10, $138.85.
LEAN HOGS:
Based on how strong Monday's market fundamentals closed, the lean hog complex may be headed for higher trade come Tuesday. Just like last Monday, the lean hog contracts traded timidly throughout Monday, seeming to want to get a better understanding of what this week's fundamental environment was going to be before moving the complex higher yet again. But with a strong slaughter pace, and higher closes in both the cutout and cash markets, traders could be enticed to trading higher come Tuesday morning. April lean hogs closed $0.42 lower at $100.37, June lean hogs closed $0.37 lower at $105.22 and July lean hogs closed $0.52 lower at $104.10. Pork cutouts totaled 305.43 loads with 279.54 loads of pork cuts and 25.89 loads of trim. Pork cutout values: up $0.31, $107.84. Monday's hog slaughter is estimated at 492,000 head, 11,000 head more than a week ago and 3,000 head less than a year ago. Friday's hog slaughter was revised to 480,000 head, which with Saturday's kill moves the week's total to 2,544,000 head. The CME Lean Hog Index for March 25: up $1.38, $95.97.
TUESDAY'S CASH HOG CALL: Steady to somewhat higher. Seeing that it's a shortened week, packers could be very active in the cash cattle market early this week as they procure last minute deals to ensure supply.
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