GENERAL COMMENTS:
The livestock complex has lost the charge-higher, no-questions-asked attitude that thankfully led the entire complex higher Monday and Tuesday. Lean hog futures are scrapping to defend their advancements in the nearby contracts, but the live cattle and feeder cattle contracts are trading fully lower. May corn is down 9 1/4 cents per bushel and May soybean meal is down $6.40. The Dow Jones Industrial Average is up 396.39 points and NASDAQ is up 68.13 points.
LIVE CATTLE:
Imagine that! Cash cattle start trading Tuesday afternoon and the board trades lower Wednesday as the market has already lost its ability to trade higher this early in the week. It's hard to get excited about live cattle futures when the cash cattle market neglects to find the support necessary to break beyond $113 to $114. April live cattle are down $0.67 at $118.97, June live cattle are down $0.75 at $118.90 and August live cattle are down $0.35 at $117.87. There's been some cattle trade in Kansas and Nebraska for $114 Wednesday morning, but trade in the North remains mostly quiet. There are bids being offered in Nebraska at $113 live and $178 to $180 dressed. Trade will most likely trickle in throughout the remainder of the week in bits and pieces, at steady prices.
The Fed Cattle Exchange Auction Wednesday listed a total of 1,296 head (1,203 head in Texas, 40 head in Kansas, and 53 head in Nebraska), of which none actually sold as they did not meet the reserve price of $114 (1 lot of heifers in Kansas had a reserve of $100) Opening prices were at $113, (the lot in Kansas was at $98), high bids ranged from $113 to $113.75.
Boxed beef prices are lower: choice down $1.94 ($227.09) and select down $3.38 ($220.42) with a movement of 88 loads (54.37 loads of choice, 14.67 loads of select, 7.85 loads of trim and 10.89 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are back to trending lower after two days of fully support trade. March feeders are down $1.37 at $135.77, April feeders are down $0.42 at $141.65 and May feeders are down $0.50 at $146.47. The weaker trade throughout the cash cattle market and the snow that's creeping across parts of South Dakota, Nebraska and Wyoming have put a damper on the market's gusto. Thankfully for feedlot's sake, corn prices are still trending modestly lower. But feedlots need to see advancements in the cash cattle market in order for it to be worth their while to dive into more feeder cattle.
LEAN HOGS:
Lean hog futures are trying to keep their upward progression but there's some hesitation creeping into the complex. April lean hogs are up $0.15 at $88.55, June lean hogs are up $0.27 at $97.10 and July lean hogs are up $0.17 at $97.25. The nearby contracts can continue to rally on the market's fundamental support of stronger cash hog prices and elevated cutout values, but the deferred contacts are a little more skeptical. With Monday's slaughter revised lower and Tuesday's slaughter down slightly, watching to see what Wednesday's estimates come in at will be extremely insightful.
The projected CME Lean Hog Index for 3/9/2021 is up $0.68 at $86.76, and the actual index for 3/8/2021 is up $0.76 at $86.08. Hog prices are higher on the National Direct Moring Hog Report, up $1.99 with a weighted average of $85.13, ranging from $79.00 to $89.00 on 5,435 head and a five-day rolling average of $83.18. Pork cutouts total 173.54 loads with 151.72 loads of pork cuts and 21.82 loads of trim. Pork cutout values: up $2.43, $99.27.
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