GENERAL COMMENTS:
The livestock complex is trading mostly lower Wednesday afternoon as the market notes the stability that corn prices are finding and longs to see some developments in the cash cattle market. Depending on how Thursday's export report goes, the markets could find support there. May corn is down 3/4 cent per bushel and May soybean meal is up $1.60. The Dow Jones Industrial Average is up 44.40 points.
LIVE CATTLE:
Upon seeing the corn complex level out and trade steadily mixed, and with lower boxed beef prices, the live cattle contracts have gone from trading higher at the day's start to now trading lower into Wednesday's afternoon. Neither of these changes (weaker beef prices or the contracts' reaction) is surprising as we knew that, at some point, boxed beef prices had to level out or correct, and without any new developments in the cash market, traders were likely to take the news negatively. April live cattle are down $0.57 at $164.90, June live cattle are down $0.90 at $160.45 and August live cattle are down $0.75 at $159.50. It's still unlikely that any cash cattle trade develops Wednesday as feedlot managers will likely push the week's trade out until Thursday or Friday in hopes of getting higher prices. Asking prices are noted around $166-plus in the South but are still unestablished in the North.
Boxed beef prices are lower: choice down $0.37 ($288.58) and select down $2.93 ($276.32) with a movement of 61 loads (44.34 loads of choice, 5.39 loads of select, 2.91 loads of trim and 8.70 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts really tested the waters Wednesday morning and attempted to trade sharply higher, but as the corn complex gained footing in Wednesday's market, the feeder cattle contracts had to react. March feeders are down $1.27 at $188.52, April feeders are down $0.97 at $194.10 and May feeders are down $0.72 at $198.90. It's unlikely that the slight change in corn prices will negatively affect feeder cattle sales Wednesday afternoon as demand is still high and supplies are thin for both feeders and calves.
LEAN HOGS:
The lean hog complex would love to catch a break, but unfortunately the market's lower tones have continued into Wednesday's hours. April lean hogs are down $0.50 at $84.67, June lean hogs are down $1.05 at $100.67 and July lean hogs are down $1.10 at $103.02. It will be interesting to see how both cash prices and cutout values close Wednesday afternoon. Pork enthusiasts are hoping that, with poultry and beef prices the way they are, more consumers will step over to the pork side of the coolers and begin to purchase more of their family meals with pork cuts in mind.
The projected lean hog index for Feb. 28 is up $0.07 at $78.58, and the actual index for Feb. 27 is up $0.29 at $78.15. Hog prices are unavailable on the Daily Direct Morning Hog Report due to packer submission issues. Pork cutouts total 145.12 loads with 133.42 loads of pork cuts and 11.70 loads of trim. Pork cutout values: up $1.28, $85.64.
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