GENERAL COMMENTS:
It's not surprising to see the livestock complex trading hesitantly ahead of the Fed's announcement of whether or not they'll raise interest rates. Some cash cattle bids have developed, but no cattle have traded as of yet. May corn is down 1/4 cent per bushel and May soybean meal is down $6.90. The Dow Jones Industrial Average is down 40.63 points.
LIVE CATTLE:
Packers are hoping they'll be able to get cattle bought early again this week as bids have developed across the five-state feeding region. Thus far, no feedlots have jumped at their bids of $163 live and $263 dressed, but time will tell on whether feedlots remain loyal to their early decision to wait the week out and hope for more. The futures complex is trading lower as traders take a seat on the market's bleachers, waiting to see what happens with interest rates before they'll do much more. Asking prices are noted in the North at $265 and in the South at $165. If feedlots desire to trade cattle higher, they're best bet is in waiting the week out and waiting to trade cattle until late Thursday or Friday.
The Fed Cattle Exchange Auction held today reported 7 lots (with 5 lots in Texas, and 2 lots in South Dakota), totaling 972 head of cattle. Opening prices were at $162, high bids were at $162 to $163, and reserve prices were at $163 to $165. One lot of heifers sold in Texas at $163.
Boxed beef prices are mixed: choice up $2.28 ($282.20) and select down $1.95 ($269.60) with a movement of 95 loads (65.91 loads of choice, 8.43 loads of select, 7.90 loads of trim and 12.69 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are trading mostly in line with Tuesday's market as traders are cautious of doing anything ahead of the Fed's interest rate announcement. But holding the market steady after closing higher Tuesday afternoon is a win in and of itself. If feedlots can hold off on selling cattle until later in the week and see steady to $1.00 higher trade, that support could help feeders trade higher if corn prices remain stagnant. March feeders are down $0.57 at $188.20, April feeders are down $0.85 at $193.85 and May feeders are down $1.32 at $198.22.
LEAN HOGS:
Yet again, the lean hog complex is trading lower as the market has yet to find any substantial support to finally put a bottom in the market's downturn. April lean hogs are down $0.92 at $76.12, June lean hogs are down $2.07 at $89.27 and July lean hogs are down $2.07 at $91.25. Depending on what the Feds what decide to do with interest rates, the lean hog market could continue to trade lower or, if the market reacts poorly to their decision, new pressure could send the market even lower.
The projected lean hog index for March 21 is down $0.84 at $77.83 and the actual index for March 20 is down $0.88 at $78.67. Hog prices on the Daily Direct Morning Hog Report have averaged $77.29, ranging from $76.00 to $79.00 on 5,900 head and the five-day rolling average sits at $77.49. Pork cutouts total 232.78 loads with 215.07 loads of pork cuts and 17.71 loads of trim. Pork cutout values: down $1.02, $80.50.
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