GENERAL COMMENTS
Traders seemed to have a change of heart with Friday's market as both the live cattle and lean hog contracts closed mostly higher. However, the $0.09 to $0.12 gain in the corn complex kept feeders from jumping on the bandwagon and enjoying a higher close themselves. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.13 with a weighted average of $76.58 on 6,851 hogs. May corn closed up 11 1/4 at $6.43 and May soybean meal closed up $6.80 at $445.1. The Dow Jones Industrial Average is up 132.28 at 32,237.53.
From Friday to Friday, livestock futures scored the following changes: April live cattle up $0.68, June live cattle up $0.20; March feeder cattle up $0.80, April feeder cattle up $0.15; April lean hogs down $2.70, June lean hogs down $1.90; May corn up $0.09, July corn up $0.05.
LIVE CATTLE:
It's refreshing to be rounding out Friday's market, finally noting a higher close! The live cattle complex has been in a war amongst itself where fundamental traders want to continue to advance the market on strong demand and thin supplies, but technical traders have seemed to win the recent tug-a-war battle while focusing on the concerns about the U.S. economy and its weakened banking system. Cash cattle prices did mildly support the market this past week as prices trended mixed. In the South, live cattle traded for $163, which is $1.00 lower than last week's weighted average, but in the North, dressed cattle traded for $264 to $265 which is steady to $1.00 higher than the previous week's weighted average. April live cattle closed $0.85 higher at $163., June live cattle closed $0.80 higher at $156.6 and August live cattle closed $0.73 higher at $156.425.
Friday's slaughter is estimated at 108,000 head, 5,000 head less than a week ago and 6,000 head less than a year ago. Saturday's slaughter is projected to be around 16,000 head. This week's slaughter is estimated at 626,000 head, 5,000 head less than a week ago and 31,000 head less than a year ago.
Boxed beef prices closed lower: choice down $2.90 ($279.88) and select down $0.14 ($268.75) with a movement of 108.09 loads (73.51 loads of choice, 10.56 loads of select, 6.70 loads of trim and 17.32 loads of ground beef). Throughout the week, choice cuts averaged $280.98 (down $3.49 from last week) and select cuts averaged $270.59 (down $2.41 from last week) with a total movement of cuts, grinds and trim totaling 612 loads.
MONDAY'S CATTLE CALL: $1.00 higher. After trading mixed this past week, feedlots could see the cash cattle market trade higher next week if they're willing to be patient and wait to trade cattle until Thursday or Friday.
FEEDER CATTLE:
The feeder cattle contracts would have liked to close higher, but with the corn complex gaining momentum throughout the day, that simply wasn't an option. However, with the live cattle complex closing higher at Friday's end, Monday may be more prosperous for the feeder cattle complex so long as the corn market doesn't again any more steam. March feeders closed $0.63 higher at $189.65, April feeders closed $0.20 lower at $194.8 and May feeders closed $1.05 lower at $197.55. The Oklahoma Weekly Cattle Auction Summary shared that, compared to last week, feeder and stocker steers under 800 pounds traded $1.00 to $3.00 lower; but feeder steers over 800 pounds traded steady to $2.00 higher. Feeder heifers sold $1.00 to $3.00 lower. Steer calves traded steady to $3.00 lower and heifer calves traded steady to $3.00 higher. Slaughter cows sold $3.00 to $5.00 higher and slaughter bulls traded $4.00 lower. Feeder cattle supply over 600 pounds was 54%. The CME Feeder Cattle Index for March 22: up $1.07, $188.85.
LEAN HOGS:
At last, a substantially higher close for the lean hog complex. Maybe it's the fact that pork cutout values are closing with more support, or maybe it's the fact that Thursday's export report was strong, but whatever the case may be, a higher close and stronger end to the week is great. Pork cutout values were able to close higher as the ham saw a $4.36 increase from Thursday's close, along with $1.87 gain in the butt cuts and $1.70 gain in the loin. June lean hogs closed $2.05 higher at $91.425, June lean hogs closed $2.05 higher at $91.425 and July lean hogs closed $2.20 higher at $93.575. Pork cutouts totaled 247.02 loads with 212.56 loads of pork cuts and 34.46 loads of trim. Pork cutout values are up $0.75 at $81.05. The CME Lean Hog Index for March 22: down $0.44, $77.39.
Friday's slaughter is estimated at 482,000 head, 10,000 head more than a week ago and 26,000 head more than a year ago. Saturday's slaughter is projected to be around 63,000 head. Thursday's slaughter was revised to 490,000 head.
MONDAY'S HOG CALL: Steady. Packers are careful about waiting the week out to see what demand looks like before they support the cash hog market.
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