GENERAL COMMENTS:
Thankfully, USDA's WASDE reports didn't shake up any of the support rallying livestock futures as the contracts are trying to trade fully higher. Tuesday's WASDE report shared that beef production for 2021 was increased by 40 million pounds, but pork production for 2021 fell by 30 million pounds, which, alongside the weaker broiler and turkey configurations, leads to the reduction in total red meat production in 2021. May corn is down 2 1/4 cents per bushel and May soybean meal is up $1.00. The Dow Jones Industrial Average is up 335.16 points and NASDAQ is up 482.28 points.
LIVE CATTLE:
It's another good day in live cattle futures as the contracts are trading mildly higher. But at this point, higher is higher. April live cattle are up $0.37 at $119.72, June live cattle are up $0.10 at $119.22 and August live cattle are up $0.07 at $117.92. Hopefully the future's slightly stronger tone will trickle into the cash cattle market and help feedlots move this week's market past $114. If feedlots are going to be able to do so, they will need full backing by the futures market all throughout the week. Thus far, packer inquiry remains limited with bids yet to be found. Some early asking prices in the South have been noted at $116, which is where feedlots priced their cattle at last week as well. Asking prices in the North have yet to be shared. Significant cash trade isn't expected to develop until Wednesday or hopefully even later in the week.
Boxed beef prices are higher: choice up $1.36 ($232.44) and select up $2.00 ($225.13) with a movement of 69 loads (42.46 loads of choice, 9.01 loads of select, 10.14 loads of trim and 7.63 loads of ground beef).
FEEDER CATTLE:
Nearby feeder cattle futures are keeping with the pace set Monday and are gladly rallying for the second day in a row as traders are willing to invest and the corn market is trading mildly lower. March feeders are up $1.37 at $136.72, April feeders are up $1.77 at $141.45 and May feeders are up $1.15 at $146.22. Thankfully, the market isn't going to run into any resistance pressure for quite some time. So, the market really needs the momentum in the cash cattle market to build so feedlots reap some profit margin and want to go procure calves and feeders to fill their lots.
LEAN HOGS:
Lean hog futures aren't being stiffed by the trade heading into the Tuesday afternoon trade. April lean hogs are up $0.87 at $88.20, June lean hogs are up $1.10 at $90.77 and July lean hogs are up $0.55 at $96.97. After the contracts backed away from the market's top around $90.00, traders have been willing to let the market trade in a steady, sideways fashion as the fundamental support continues to shine light on the market.
The projected CME Lean Hog Index for 3/8/2021 is up $0.76 at $86.08, and the actual index for 3/5/2021 is up $0.75 at $85.32. Hog prices are higher on the National Direct Morning Hog Report, up $1.94 with a weighted average of $83.14, ranging from $83.03 to $84.00 on 2,970 head and a five-day rolling average of $82.08. Pork cutouts total 239.96 loads with 213.81 loads of pork cuts and 26.15 loads of trim. Pork cutout values: up $4.18, $99.11.
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