GENERAL COMMENTS:
The livestock complex is seeing tremendous support through Monday's market. As long as the corn complex doesn't trade much higher, the three livestock markets should be able to sustain these gains through closing. If the live cattle market continues to see support from traders and support in higher boxed beef prices, then the cash cattle market could even trade higher too. May corn is up 4 3/4 cents per bushel and May soybean meal is down $0.80. The Dow Jones Industrial Average is up 206.84 points.
LIVE CATTLE:
The live cattle complex is seeing the same support as the feeder cattle and lean hog contracts with the market trading substantially higher. It's refreshing to see the spot June contract trading above its 100-day moving average and to be within a safe trading range of even taking on the market's 40-day moving average. April live cattle are up $1.45 at $164.45, June live cattle are up $1.85 at $158.45 and August live cattle are up $1.75 at $158.17. If the market keeps this upward momentum, the cash cattle market should have no issue to trading higher this week.
Last week's negotiated cash cattle trade totaled 84,955 head. Of that, 75% (64,049 head) were committed for the nearby delivery, while the remaining 25% (20,906 head) were committed for the deferred delivery. The bulk of last week's trade took place on Wednesday with a little light scattered trade reported on Thursday. Northern dressed deals ranged from $262 to $268, mostly $264 to $265, steady to $1 higher than the prior week's weighted average basis Nebraska. Southern live trade was at $162 to mostly $163, $1 lower than the previous week's weighted averages.
Boxed beef prices are higher: choice up $0.28 ($280.16) and select up $0.16 ($269.36) with a movement of 33 loads (18.66 loads of choice, 3.84 loads of select, zero loads of trim and 10.07 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex caught wind of the moisture accumulated this past weekend in parts of Montana and Wyoming and has traded aggressively higher ever since. Even the onset of $0.03 to $0.09 higher corn prices isn't affecting the market thus far, as most of its contracts are trading $1.00 to $3.00 higher. It is interesting to note that most of the market's major gains are being seen in the furthest deferred months or the later half of 2023. Supplies of feeder cattle are expected to become incredibly thin in the second half of the year and the futures complex is aware of that reality. April feeders are up $2.72 at $197.52, May feeders are up $3.70 at $201.27 and August feeders are up $2.90 at $217.02.
LEAN HOGS:
The lean hog complex has run into the new week with momentum and vigor that the complex hasn't seen in a long time. April lean hogs are up $2.25 at $79.45, June lean hogs are up $2.37 at $93.80 and July lean hogs are up $2.22 at $95.80. Corn prices are trending higher, which affects hog feeder's margins, but as long as the hog complex can stay ahead of the corn market's momentum and see support in Monday afternoon's pork cutout values, then the complex should be able to keep with its upward run.
The projected lean hog index for March 24 are down $0.42 at $76.57, and the actual index for March 23 is down $0.40 at $76.99. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.15 with a weighted average of $76.03, ranging from $69.00 to $77.00 on 5,080 head and a five-day rolling average of $76.54. Pork cutouts total 156.85 loads with 140.09 loads of pork cuts and 16.76 loads of trim. Pork cutout values: up $4.42, $85.47.
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