GENERAL COMMENTS
The livestock complex was a mixed bag throughout Tuesday's market as the only generalization that can be made is that hesitancy kept all three of the market's trading halfheartedly. Most of the market's timidness stemmed from traders not wanting to change the market ahead of Wednesday's WASDE report. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.56 with a weighted average of $78.47 on 13,065 hogs. May corn is down 2 3/4 cents per bushel and May soybean meal is down $5.60. The Dow Jones Industrial Average is down 516.67 points.
LIVE CATTLE:
The live cattle complex closed mixed Tuesday with its nearby contracts facing mild resistance ahead of closing while the deferred contracts kept them mild gains through the day's end. After Wednesday's midmorning WASDE report is released, the complex will likely trade stronger again so long as there are no unforeseen changes to the report. It will be interesting to see if there are any more export opportunities noted in 2023 as Brazil has been detected with BSE, which has limited their exporting abilities. The cash cattle market didn't see any developments throughout Tuesday's trade as it's simply too early in the week for trade to have developed. Asking prices are noted at $167 in the South and are still unestablished in the North. Trade won't likely develop until Thursday or Friday. April live cattle closed $0.12 lower at $165.97, June live cattle closed $0.45 lower at $160.55 and August live cattle closed $0.37 lower at $160.10.
Tuesday's slaughter is estimated at 127,000 head, 1,000 head more than a week ago and 3,000 head more than a year ago.
Boxed beef prices closed mixed: choice down $2.27 ($287.93) and select up $1.02 ($277.49) with a movement of 105 loads (72.62 loads of choice, 16.04 loads of select, zero loads of trim and 16.62 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. It's likely that when cash cattle trade this week, prices will be higher. Packers may not want to pay $1.00 or $2.00 more, but feedlots won't likely settle for anything less than steady.
FEEDER CATTLE:
The feeder cattle complex fought hard in its nearby contracts to close higher, and while the deferred months still closed slightly lower, a mixed market is better than a completely lower market. Feeder cattle traders continued to look at the descend of corn prices and couldn't help but to hold the nearby contracts at least steady. March feeders closed $0.05 higher at $192.12, April feeders closed $0.07 higher at $198.67 and May feeders closed $0.95 higher at $204.20. After Wednesday's WASDE report is shared, and once cash cattle begin to trade, the feeder cattle contracts will likely find more support again. But after trading sharply higher last Friday and Monday, finding support could simply mean chopping sideways for a while. At Tri-State Livestock Auction in McCook, Nebraska, compared to last week and on a run of 2,475 head, steers traded steady to $5.00 higher while heifers traded steady to $8.00 higher. Feeder cattle supply over 600 pounds was 78%. The CME Feeder Cattle Index for March 6: up $0.83, $188.04.
LEAN HOGS:
The spot April contract was able to close slightly higher ahead of Tuesday's end, but the rest of the lean hog contracts closed lower. There's a possibility that Wednesday's WASDE report helps the market and paints a stronger demand outlook for the near future, but that will only be known when the report is released. We know that the third quarter is supposed to be better in terms of pork demand, but the present is in question. April lean hogs closed $1.32 higher at $84.80, June lean hogs closed $0.55 lower at $100.07 and July lean hogs closed $0.37 lower at $102.60. Pork cutouts total 311.98 loads with 271.28 loads of pork cuts and 40.70 loads of trim. Pork cutout values: down $0.31, $87.02. Tuesday's slaughter is estimated at 485,000 head, steady with a week ago and 5,000 head more than a year ago. Monday's hog slaughter was revised to 461,000 head. The CME Lean Hog Index for March 3: up $0.20, $78.91.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Packer demand was better throughout Tuesday's hours, but packers haven't bought enough hogs to be satisfied for the week.
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