GENERAL COMMENTS:
It's been a surprising day for the cattle complex as both the live cattle and feeder cattle contracts have finally caught a break from the market's immense pressure and are again able to trade higher. The lean hog complex is still trading lower despite the market's supportive export report it received Thursday morning. May corn is up 6 1/4 cents per bushel and May soybean meal is down $4.00. The Dow Jones Industrial Average is up 169.55 points.
LIVE CATTLE:
Feedlots are kicking themselves Thursday morning as they watch the live cattle complex trade higher and find support around the market's 100-day moving average. If feedlots would have been patient, they could have potentially delayed trade until Thursday and kept prices at least steady. April live cattle are up $1.02 at $162.57, June live cattle are up $0.72 at $157.30 and August live cattle are up $0.67 at $157.02. The cash cattle market hasn't seen any more trade develop, although more will need to develop ahead of the week's end. Thus far this week, Southern live cattle sold for $164, which is $1.00 lower than last week's weighted average and Northern dressed cattle traded for mostly $264, which is also $1.00 lower than last week's weighted average.
Beef net sales of 17,700 mt for 2023 were up noticeably from the previous week and up 24% from the prior four-week average. The three largest buyers were South Korea (5,300 mt), Japan (3,200 mt) and Taiwan (2,600 mt).
Boxed beef prices are higher: choice up $1.01 ($285.28) and select up $0.10 ($272.73) with a movement of 88 loads (65.49 loads of choice, 6.29 loads of select, zero loads of trim and 16.60 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts have found support in Thursday's market and are successfully trading higher into the day's noon hour. It's quite surprising to see the feeder cattle contracts trading higher while the nearby corn contracts are trading steady to $0.05 stronger, but with the mild support that the live cattle complex is lending to its market, traders feel comfortable advancing the contracts after a tough trading environment earlier this week. March feeders are up $1.15 at $189.35, April feeders are up $2.12 at $195.37 and May feeders are up $1.90 at $200.70.
LEAN HOGS:
As the lean hog complex continues to run lower, the market is growing closer to pressuring existing support planes. It would have been nice if Thursday morning's modestly supportive export report would have been enough to help the contracts trade at least steady, but with immense outside pressure continuing to drive the contracts lower, it doesn't seem to matter what the market accomplishes fundamentally. April lean hogs are down $1.37 at $82.37, June lean hogs are down $2.62 at $95.60 and July lean hogs are down $2.52 at $98.32.
The projected lean hog index for March 15 is up $0.02 at $79.95, and the actual index for March 14 is up $0.04 at $79.93. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $0.31 with a weighted average of $78.46, ranging from $72.00 to $80.00 on 4,669 head and a five-day rolling average of $76.98. Pork cutouts total 149.21 loads with 133.45 loads of pork cuts and 15.75 loads of trim. Pork cutout values: down $0.49, $85.89.
Pork net sales of 35,600 mt for 2023 were up 62% from the previous week but down 5% from the prior four-week average. The three largest buyers were Mexico (9,900 mt), Japan (6,400 mt) and China (5,000 mt).
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