GENERAL COMMENTS
Throughout Friday, the livestock contracts rallied and all three markets were able to keep that momentum through closing. It helped the cattle complex that cash cattle trade finally started to develop shortly after the noon hour. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.66 with a weighted average of $78.04 on 6,154 head. May corn is up 6 cents per bushel and May soybean meal is up $9.00. The Dow Jones Industrial Average is up 387.40 points.
From Friday to Friday, livestock futures scored the following changes: April live cattle up $0.05, June live cattle down $0.40; March feeder cattle up $0.93, April feeder cattle up $2.45; April lean hogs down $1.48, June lean hogs down $2.85; March corn down $0.05, May corn down $0.09.
LIVE CATTLE:
By Friday's end, all live cattle enthusiasts could breathe easier as the cash cattle market finally traded and prices were indeed higher. Right after Friday's noon hour, cash cattle trade started to develop with Northern dressed cattle selling for mostly $265, which is $4.00 higher than last week's weighted average, and Southern live cattle traded for $165, which his $1.00 higher than last week's weighted average. Traders noted the strong continued momentum in the cash sector and kept the live cattle contracts elevated through closing. April live cattle closed $1.32 higher at $165.42, June live cattle closed $1.22 higher at $160.67 and August live cattle closed $1.17 higher at $159.90.
Friday's slaughter is estimated at 117,000 head, 5,000 head less than a week ago and 4,000 head less than a year ago. Saturday's slaughter is projected to be around 11,000 head. This week's slaughter is estimated at 629,000 head, 11,000 head more than a week ago and 30,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.82 ($289.32) and select down $0.72 ($276.86) with a movement of 77 loads (54.89 loads of choice, 10.24 loads of select, 4.65 loads of trim and 7.27 loads of ground beef). Throughout the week choice cuts averaged $288.59 (up $1.95 from last week) and select cuts averaged $277.87 (up $4.78 from last week) with a total movement of cuts, grinds, and trim totaling 443 loads.
MONDAY'S CATTLE CALL: Higher. We have entered into a new stage of the cattle cycle as prices will likely trend higher throughout most of the year since thin supplies amid extremely strong beef demand beckons higher prices.
FEEDER CATTLE:
The feeder cattle contracts didn't seem to care that the nearby corn contracts closed $0.06 to $0.07 higher, all the market seemed fixated on was strong feeder cattle demand in the countryside and the fact that fat cattle sold $1.00 to $4.00 higher this week. The spot April contract was able to close at a new contract high of $196.02, and from May 2023 through January 2024, all the feeder cattle contracts are trading at or above $200.00. It's beyond apparent that the the feeder cattle contracts are aware of the market's strong fundamental outlook. March feeders closed $1.42 higher at $190.00, April feeders closed $2.17 higher at $196.02 and May feeders closed $2.12 higher at $200.95. The Oklahoma Weekly Cattle Auction Summary shared that, compared to last week, feeder steers traded $3.00 to $5.00 higher and feeder heifers traded $3.00 to $6.00 stronger. Stocker cattle sold $3.00 to $6.00 higher. Slaughter cows traded $3.00 to $4.00 higher and slaughter bulls sold $3.00 to $5.00 higher. Feeder cattle supply over 600 pounds was 56%. The CME Feeder Cattle Index for March 2: unavailable at this time.
LEAN HOGS:
It didn't seem to matter what the market's fundamentals did throughout Friday, the lean hog complex was going to trade higher and it kept that momentum through closing. April lean hogs closed $0.70 higher at $84.55, June lean hogs closed $0.05 higher at $100.62 and July lean hogs closed $0.12 higher at $102.85. Both cash prices and pork cutout values closed lower but that didn't hinder the contracts' upward momentum. Pork cutouts totaled 210.87 loads with 187.53 loads and 23.33 loads of trim. Pork cutout values: down $0.16, 85.57. Friday's slaughter is estimated at 475,000 head, 8,000 head more than a week ago and 4,000 head more than a year ago. Saturday's slaughter is projected to be around 124,000 head. The CME Lean Hog Index for March 1: up $0.07, $78.65.
MONDAY'S HOG CALL: Lower. It's likely that Monday's cash market is lower as packers will want to see how the week's demand is shaping up before they invest wildly in the hog market.
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