GENERAL COMMENTS:
The lean hog complex is trading higher as the market is thankful to see plentiful pork interest. Meanwhile, the cattle contracts are lower as the cash market's steady trade isn't lighting traders' spark. May corn is down 1/2 cent per bushel and May soybean meal is up $3.80. The Dow Jones Industrial Average is down 72.89 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:
Live cattle futures are reacting poorly to cash cattle trading at steady prices as traders have grown accustomed to hearing about higher cash prices. One would think that with the regression in chain speeds, traders would be thankful cash prices aren't lower and find additional comfort in the fact that beef prices are continuing to show support. But as the market nears Thursday's noon hour, the trend is lower throughout all the live cattle contracts. April live cattle are down $0.40 at $185.75, June live cattle are down $0.52 at $181.65 and August live cattle are down $0.50 at $180.80. A few more cash cattle sales have been reported in the North at $183 -- in Western Nebraska to be specific. These prices are steady with last week's business and a couple of bids are currently being offered for dressed at $290 in Nebraska as well. A few more sales have been reported in Texas at $183, which is steady with last week's business.
Boxed beef prices are higher: choice up $0.40 ($303.43) and select up $2.01 ($294.95) with a movement of 70 loads (34.97 loads of choice, 11.52 loads of select, 12.46 loads of trim and 10.86 loads of ground beef).
FEEDER CATTLE:
The cash cattle market's steady trade has left a sour taste in traders' mouths and is affecting both the live cattle and feeder cattle markets. Demand out in the countryside remains incredibly strong, but from a technical standpoint the market is lagging this week and showing signs of exhaustion. March feeders are down $0.62 at $248.97, April feeders are down $1.57 at $253.52 and May feeders are down $1.85 at $256.10.
LEAN HOGS:
The lean hog complex is continuing to trade higher as the market is thankful for strong pork interest which has been dually noted Thursday in the morning's export sales report and midday pork cutout values that are slightly higher. April lean hogs are up $0.55 at $86.55, June lean hogs are up $0.97 at $100.52 and July lean hogs are up $0.85 at $101.65. It's likely packers have virtually boughten up all the hogs they're going to this week as there were no new sales reported Thursday morning and given that sales were more numerous at higher prices on Tuesday and Wednesday.
The projected CME Lean Hog Index for 2/28/2024 is up $0.24 at $80.15, and the actual index for 2/27/2024 is up $0.13 at $79.91. Hog prices are unavailable on the Daily Direct Morning Hog Report because no hogs have traded. Pork cutouts total 170.16 loads with 154.20 loads of pork cuts and 15.97 loads of trim. Pork cutout values: up $0.16, $90.50.
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