With Northern dressed trade pushing cattle $1.00 to $4.00 higher and Southern live cattle keeping prices fully steady with last week's business -- the cash cattle market deserves a round of applause for sticking to their guns and demanding more of the market's dollar. The feeder cattle and lean hog contracts weren't as lucky as both markets closed lower. Hog prices closed lower on the Daily Direct Afternoon Hog report, down $0.91 with a weighted average of $106.82 on 8,700 head. May corn is up 24 1/2 cents per bushel and May soybean meal is down $3.90. The Dow Jones Industrial Average is up 417.66 points and NASDAQ is up 178.23 points.
LIVE CATTLE:While the rest of the futures market moved lower, the live cattle contracts were able to rally thanks to a cash cattle market with a backbone. Packers shot out lower bids at the day's start, but feedlots in both the North and South wanted at least steady prices. Southern feedlots took packer bids at $138, which is steady with last week's trade, but Northern feedlots let packers sit hungry a little while longer -- and it paid off for them. Northern dressed trade ranged from $221 to $224 which is $1.00 to $4.00 higher than last week. Most of the high-end deals for dressed cattle were made to a regional packer -- maybe we need some more of them! The futures market rallied off the strength that the cash cattle market possessed and led its entire market to a mildly higher close. April live cattle closed $0.12 higher at $139.47, June live cattle closed $0.40 higher at $135.92 and August live cattle closed $0.15 higher at $136.65. Thursday's slaughter is estimated at 125,000 head -- 1,000 head more than week ago and 13,000 head more than a year ago.
Feedlots could have easily been pushed into trading cattle at weaker money this week as packers flopped out lousy bids and tried to use the futures' weaker close on Wednesday as a rational for lower prices. But feedlots stuck together, waited the day out and better money showed up. Congratulations feedlots, job well done!
Beef net export sales of 19,700 metric tons (mt) for 2022 were down 28% from the previous week and 11% from the prior 4-week average. The three largest buyers were China (6,600 mt), Japan (5,200 mt) and South Korea (2,600 mt).
Thursday's actual slaughter data for the week ended 3/5/2022: steer carcasses gained a pound from the previous week to average 919 pounds, but heifer weights fell by five pounds from the week before to average 848 pounds.
Boxed beef prices closed mixed: choice down $1.03 ($257.05) and select up $0.41 ($250.68) with a movement of 148 loads (81.19 loads of choice, 13.04 loads of select, 5.91 loads of trim and 47.49 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. A few more cattle could trade ahead of the week's close, but prices are likely established.
FEEDER CATTLE:The grain contracts rounded out the day mostly higher, which sent the feeder cattle contracts lower, but demand throughout the countryside found modest interest from some buyers. March feeders closed $0.70 lower at $156.55, April feeders closed $1.52 lower at $161.10 and May feeders closed $1.40 lower at $165.87. With the market still extremely volatile due to war constraints, this higher one day, lower the next, turn on a dime type of trade is likely to continue. At Winter's Livestock Auction in Dodge City, Kansas, compared to last week on a run of 4,632 head feeder steers weighing 600 to 975 pounds traded $3.00 to $4.00 higher. Steer calves weighing 400 to 600 pounds traded unevenly steady. Heifers weighing 400 to 950 ponds sold steady to $2.00 higher. And 200 fancy replacement type heifers weighing from 500 to 600 pounds sold $10.00 higher. Slaughter cows sold $3.00 to $4.00 higher. The CME Feeder Cattle Index 3/17/2022: up $1.09, $154.23.
LEAN HOGS:The cash hog market closed lower, but this week's interest in the cash market has been very strong thanks to limited supplies. The lean hog complex rounded out the day fully lower as traders continue to move the contracts lower from Wednesday's weaker close. Pork cutout values did close slightly higher, but the pressures of the futures market outweighed the interest in hog cuts. April lean hogs closed $2.02 lower at $100.35, June lean hogs closed $3.50 lower at $116.97 and July lean hogs closed $3.07 lower at $116.37. Pork cutouts totaled 293.20 loads with 251.76 loads of pork cuts and 41.44 loads of trim. Pork cutout values: up $0.18, $105.20. Thursday's slaughter is estimated at 477,000 head -- 4,000 head more than a week ago and 16,000 head less than a year ago. The CME Lean Hog Index 3/15/2022: down $0.08, $100.41.
Pork net export sales of 38,300 mt for 2022 were up 51% from the previous week and 36% from the prior 4-week average. The three largest buyers were Mexico (21,700 mt), Japan (6,100 mt) and Australia (2,700 mt).
Thursday's actual slaughter data for the week ended 3/5/2022: both live and dressed hog weights held steady compared to the week before -- live hogs averaged 292, and dressed hogs averaged 218.
FRIDAY'S CASH HOG CALL: Steady. Thursday's cash market closed almost $1.00 lower, but it's important to note that packer interest was strong as 8,700 head sold. It's unlikely that packers push the market to higher prices ahead of the weekend, but they could show interest in a handful of hogs as the need to get hogs committed is critical.
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