GENERAL COMMENTS:
With all three of the livestock markets trading higher into Friday's afternoon, there's plenty to watch through the day's end, but monitoring cash cattle prices and whether or not the spot April feeder cattle contract closes at a new contract high remains a top priority. May corn is up 8 1/4 cents per bushel and May soybean meal is up $9.00. The Dow Jones Industrial Average is up 228.55 points.
LIVE CATTLE:
After Thursday's weaker performance, the live cattle contracts are back to trading higher as the market nears noon Friday. It's helping that bids are currently being offered in parts of Kansas and Nebraska, though no cattle have traded yet Friday. Bids are being offered in Kansas at $163 live, and in Nebraska at $163 live and $262 dressed. Asking prices in the South are firm at $166-plus and at $265-plus in the North. Thus far this week, only a light trade has been reported in Iowa with dressed deals being marked at $262 to $265 and live deals at $161 to $166. In Nebraska, some light trade has also been reported at $262 to $264 dressed and $164 to $165 live. Unless this week's movement is going to be extremely thin -- with just a few pens having been sold in the North and not even a single hoof being sold in the South -- more trade will need to develop Friday afternoon. April live cattle are up $1.22 at $165.32, June live cattle are up $1.02 at $160.47 and August live cattle are up $1.00 at $159.72.
Boxed beef prices are mixed: choice up $1.58 ($290.08) and select down $0.16 ($277.42) with a movement of 48 loads (32.69 loads of choice, 5.03 loads of select, 3.45 loads of trim and 6.67 loads of ground beef).
FEEDER CATTLE:
Even though the corn contracts are trading $0.01 to $0.07 higher in their nearby months, the spot April feeder cattle contract is looking at carving out a new contract high if the market can sustain these prices through closing. It's incredible to see the feeder cattle complex this strong when the corn contracts are trading slightly higher and the cash cattle market has yet to really trade. Despite those two factors affecting this week's business, that doesn't change the fact that both feeders and calves are in short supply and buyers know that the closer we get to spring and green grass, the higher prices will likely become. March feeders are up $1.27 at $189.85, April feeders are up $2.20 at $196.05 and May feeders are up $2.02 at $200.85.
LEAN HOGS:
It's a fruitful day for not only the cattle contracts, but the lean hog contracts too. With pork cutout values finding a little more footing in this week's market, traders have o found enough fundamental support in the market to justify moving the contracts higher. The contracts are in no way shape or form at any risk of running into resistance anytime soon, so the market can trade higher with ease. April lean hogs are up $0.70 at $84.55, June lean hogs are up $0.35 at $100.92 and July lean hogs are up $0.45 at $103.17.
The projected lean hog index is unavailable at this time. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.22 with a weighted average of $77.85, ranging from $75.00 to $79.00 on 3,734 head and a five-day rolling average of $78.05. Pork cutouts total 118.75 loads with 107.24 loads of pork cuts and 11.50 loads of trim. Pork cutout values: up $0.21, $85.94.
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