GENERAL COMMENTS
It was a mixed day for the livestock complex as the futures contract closed mostly lower, but cash cattle trade did begin to develop at steady prices compared to last week's market. More trade should develop on Friday as Thursday's movement has been thin, but prices are expected to remain steady. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.44 with a weighted average of $78.58 on 8,090 head. March corn is down 16 cents per bushel and March soybean meal is up $0.50. The Dow Jones Industrial Average is down 543.54 points and NASDAQ is down 237.64 points.
LIVE CATTLE:
The live cattle complex stammered through Thursday's market without much technical support helping the market along the way. To start the day off, Thursday's export report was no help the complex as very little beef was exported, and from then on traders took a cautious approach to handling the contracts the rest of the day. A little bit of cash cattle trade has been reported in Nebraska at $265, which is fully steady with last week's weighted average. And a little bit of trade was reported in the South at $165, which is also fully steady with last week's market. Although the week's volume of cattle traded still isn't much, steady tones seem to be dominating this week's market. Given that prices have traded higher for the last five-consecutive weeks in a row, steady trade shouldn't come as a disappointment. April live cattle closed $0.65 lower at $164.80, June live cattle closed $0.97 lower at $159.67 and August live cattle closed $0.82 lower at $159.35. Thursday's slaughter is estimated at 124,000 head, 1,000 head less than a week ago and 1,000 head more than a year ago.
Beef net sales of 5,600 mt for 2023, a marketing-year low, were down 31% from the previous week and 67% from the prior four-week average. The three largest buyers were Japan (3,200 mt), Mexico (1,400 mt) and China (500 mt).
Thursday's actual slaughter data shared that, for the week ending Feb. 25, steers averaged 902 pounds, which is 4 pounds lighter than the previous week and 16 pounds lighter than a year ago. For the same week, heifers averaged 831 pounds, which is 3 pounds heavier than the week before and 22 pounds lighter than a year ago.
Boxed beef prices closed lower: choice down $0.18 ($284.60) and select down $2.07 ($276.05) with a movement of 87 loads (61.04 loads of choice, 10.89 loads of select, 4.65 loads of trim and 10.86 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that a light movement of cattle has been reported in both regions at steady money, it's likely that Friday's market holds that trend.
FEEDER CATTLE:
The feeder cattle complex opted to trade cautiously throughout Thursday's market as traders believe their aggressive moves earlier this week were justified and sound decisions, but that now it's time to let the market rest. For cattle feeders out in the countryside, Thursday's corn close was another breath of fresh air as nearby contracts closed $0.12 to $0.16 lower. Demand continues to shine bright in feeder cattle sales across the countryside as buyers are soberly aware that there simply aren't going to be as many calves/feeders to be had this year as there was in years past. March feeders closed $0.67 lower at $193.07, April feeders closed $0.92 lower at $199.15 and May feeders closed $0.67 lower at $205.47. At Winter Livestock Auction in Pratt, Kansas feeder steers and heifers were trading $1.00 to $4.00 higher at their midsession point. Feeder cattle supply over 600 pounds was 85%. The CME Feeder Cattle Index for March 8: up $0.39, $188.72.
LEAN HOGS:
It was a mixed day for the lean hog complex as the market saw a mixed close from the futures contracts by Thursday's end, but pork cutout values were still able to close higher. Any day that the market can post higher pork cutout values is a win for the lean hog complex as nearby demand remains one of the market's biggest concerns. April lean hogs closed $0.67 lower at $85.07, June lean hogs $0.17 higher at $100.45 and July lean hogs closed $0.07 higher at $102.75. Pork cutouts totaled 318.49 loads with 280.04 loads of pork cuts and 38.45 loads of trim. Pork cutout values: up $0.73, $88.39. Thursday's slaughter is estimated at 485,000 head, 1,000 head less than a week ago and 12,000 head more than a year ago. The CME Lean Hog Index for March 7: up $0.20, $79.29.
Pork net sales of 22,100 mt for 2023 were down 29% from the previous week and 44% from the prior four-week average. The three largest buyers were Mexico (10,700 mt), South Korea (3,800 mt) and Colombia (1,200 mt).
FRIDAY'S HOG CALL: Lower. Packers have already secured most of the hogs they needed for the week, so Friday's cash market isn't expected to be higher in terms of prices or volumes.
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