GENERAL COMMENTS:
It was a mixed day for the livestock complex as the cattle complex struggled to must up any technical support, but the lean hog complex thrived on the unveiling of yet another strong export report. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.02 with a weighted average price of $75.49 on 1,645 head. May corn is up 1 cent per bushel and May soybean meal is up $1.70. The Dow Jones Industrial Average is up 39.84 points.
Thursday's weekly Export Sales and Shipments report shared that beef net sales of 12,200 metric tons (mt) for 2024 were down 3% from the previous week and 26% from the prior four-week average. The three largest buyers were Japan (4,300 mt), South Korea (2,000 mt) and Mexico (1,300 mt). Pork net sales of 32,400 mt for 2024 were up 12% from the previous week but down 11% from the prior four-week average. The three largest buyers were Mexico (14,500 mt), South Korea (5,200 mt) and Canada (3,500 mt).
LIVE CATTLE:
The live cattle complex had a bah-humbug attitude all throughout the day as traders seemed annoyed with the fact that the cash cattle market is trading steady. Trading steady isn't a defeat but when news started to surface that cattle were being bought with time (delivery for the week of March 11th) pressure really started to build in the minds of cattlemen. Packers have made it a goal to keep the cash cattle market in check and the two ways that they'll go about doing that is by running slower chain speeds and building up inventory around them. They were able to successfully do that this week with getting cattle bought with time. April live cattle closed $0.77 lower at $185.35, June live cattle closed $0.95 lower at $181.22 and August live cattle closed $0.60 lower at $180.70. Trade was mostly steady in the cash market with live prices marked at $183 and dressed cattle selling for $290.
Thursday's slaughter is estimated at 123,000 head -- steady with a week ago and 1,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.17 ($304.20) and select up $1.24 ($294.18) with a movement of 130 loads (78.02 loads of choice, 23.04 loads of select, 15.20 loads of trim and 13.53 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that trade has developed in both regions, it's likely that prices remain steady with the week's trend at this point.
FEEDER CATTLE:
The feeder cattle complex closed lower as the market struggled to find substantial technical support throughout Thursday's trade. Demand continues to be strong in the countryside for calves and feeders, but with the live cattle contracts also trading lower -- the market stood little chance of closing higher. March feeders closed $0.60 lower at $249.00, April feeders closed $1.37 lower at $253.72 and May feeders closed $1.85 lower at $256.12. At La Junta Livestock Commission in La Junta, Colorado compared to last week feeder steers under 550 pounds sold $8.00 to $17.00 higher with instances of prices even higher than that. Steers over 550 pounds traded $3.00 to $15.00 lower on a light test. Feeder heifers under 350 pounds sold $4.00 to $10.00 higher, heifers between 350 and 500 pounds traded $1.00 to $7.00 lower but heifers over 500 pounds traded $1.00 to $20.00 higher. The CME feeder cattle index for 2/28/2024: down $0.54, $246.26.
LEAN HOGS:
The lean hog complex was hopeful that Thursday's export report would show strong international pork demand and thankfully hog enthusiasts were granted a support report. Pork cutout values here in the US still remain somewhat unstable as big swings in the belly are gravely affecting carcass prices. Yes, cash hog prices did close higher, but with the day's total volume less than 2,000 head – it's hard to say that the market did much of anything. April lean hogs closed $0.62 higher at $86.62, June lean hogs closed $0.65 higher at $100.20, and July lean hogs closed $0.67 higher at $101.47. Pork cutouts totaled 283.22 loads with 258.03 loads of pork cuts and 25.19 loads of trim. Pork cutout values: down $0.12, $90.22. Thursday's slaughter is estimated at 491,000 head -- 1,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index 2/27/2024: up $0.13, $79.91.
FRIDAY'S CASH CALL: Lower. It's likely that packers have already secured the hogs they need from the cash market this week.
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