GENERAL COMMENTS:
Thursday's market was nothing short of wild as the futures closed higher, both the cash hog and cash cattle markets sought after steady to higher trade and the big daddy of the all, Thursday's Quarterly Hogs and Pigs report, defines the utter essence of bullish. Hog prices closed higher on the National Direct Afternoon Hog Report, up $1.94 with a weighted average of $94.12 on 8,055 head. May corn is down 6 3/4 cents per bushel and May soybean meal is up $3.60. The Dow Jones Industrial Average is up 199.42 points and NASDAQ is up 15.79 points.
LIVE CATTLE:
The cash cattle market saw some clean-up trade develop in the North for $116, which is steady to $1.00 higher than Wednesday's business. The cattle contracts have had a great week breaking out of the depressing sideways trade that was chaining the market to steady, if not lower trade and robbing the market of all hope as feedlots desperately need a spring rally. Thankfully, this week's bump in boxed beef prices has helped move the cash cattle market higher and the support from the futures contracts has been greatly appreciated. There's still lots of time to pass before the April contract closes, but hopefully the cash market does more of the converging than the April contract does and cash cattle prices can get close to $120. April live cattle closed $0.42 higher at $119.55, June live cattle closed $0.77 higher at $121.07 and August live cattle closed $0.62 higher at $120.37. Thursday's slaughter is estimated at 121,000 head, 10,000 head more than a week ago and 4,000 head less than a year ago.
Thursday's actual slaughter data for the week ending March 13 shared mixed news for beef carcass weights. Steers averaged 904 pounds, which is 4 pounds more than the previous week and heifers lost 1 pound from the week before to average 832 pounds.
Boxed beef prices closed higher: choice up $1.61 ($236.45) and select up $2.18 ($226.25) with a movement of 102 loads (64.40 loads of choice, 12.75 loads of select, 10.55 loads of trim and 14.22 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Seeing that there's been trade in both the North and the South, Friday's trade will most likely be clean-up in nature and steady with the week's already determined prices.
FEEDER CATTLE:
The feeder cattle contracts kept on trading higher throughout Thursday's trade as the market merely begged for the complex to trade higher as corn prices were lower, live cattle prices closed higher and cash cattle trade continues to look for higher bids. April feeders closed $1.77 higher at $144.22, May feeders closed $1.80 higher at $149.12 and August feeders closed $1.25 higher at $158.12. At Torrington Livestock Auction in Torrington, Wyoming, compared to two weeks ago, steers and heifers under 700 pounds sold $8.00 to $10.00 higher. Feeder cattle over 700 pounds traded steady. The moisture that the area has been able to accumulate over the last week made buyers more optimistic and there was great buyer interest from both the live auction and the internet. The CME Feeder Catle Index for March 24: up $0.58, $135.62.
LEAN HOGS:
Drum roll, please! Just when you think that you've got the markets figured out, they have a peculiar way of humbling one quickly. Thursday's trade was another day of bullish hype as cash hog prices jumped higher again and Quarterly Hogs and Pigs report came out far more bullish than anyone anticipated. A long, perplexing story told short: hog supplies are current and are looking to tighten in the near future and pork demand continues to be sought with stellar demand. Thursday's lean hog contracts were all able to close higher and with the quarterly report as favorable as it was, Friday's trade will most likely be higher yet again. April lean hogs closed $1.90 higher at $99.67, June lean hogs closed $1.27 higher at $103.32 and July lean hogs closed $1.15 higher at $102.67. Pork cutouts total 299.44 loads with 266.18 loads of pork cuts and 33.26 loads of trim. Pork cutout values: down $1.23, $109.24. Thursday's slaughter is estimated at 490,000 head, 2,000 head less than a week ago and 11,000 head less than a year ago. Wednesday's hog slaughter was revised to 486,000 head. The CME Lean Hog Index for March 23: $0.38, $93.85.
Thursday's slaughter data shared steady eddy news for hog producers as pork carcass weights are unchanging from the previous week. For the week ending March 13, live carcasses averaged 291 pounds and dressed carcasses averaged 217 pounds, both unchanged from the previous report.
FRIDAY'S CASH HOG CALL: Steady to somewhat higher. Seeing how bullish the quarterly report was, Friday's market could be higher again as the market rallies off exciting news and packers grit their teeth as supplies tighten.
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