GENERAL COMMENTS:
It was a slow and lethargic day for the cattle contracts as little excitement developed. Some cash cattle sales were reported in the South at $183, which is steady with last week's weighted average. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.77 with a weighted average price of $74.47 on 1,668 head. May corn is up 5 cents per bushel and May soybean meal is up $2.60. The Dow Jones Industrial Average is down 23.39 points.
LIVE CATTLE:
Live cattle futures closed lower as the market anticipated steady cash cattle trade and was proven right when trade started to slowly develop this afternoon. It didn't look like trade was going to really develop until later in the week, but as the afternoon began to play out, packers and feedlots settled on steady prices in the South and cattle began to lightly trade.
Of the few head of cattle traded, Southern cattle have been marked at $183, which is steady with last week's business, but Northern cattle have yet to sell. Yes, boxed beef prices did close higher and choice cuts are up to $303.03 now, but traders seem more concerned with cash trade than the strong nature of the boxes right now. April live cattle closed $1.60 lower at $186.12, June live cattle closed $1.40 lower at $182.17 and August live cattle closed $1.37 lower at $181.30. Wednesday's slaughter is estimated at 125,000 head -- 5,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed higher: Choice up $1.29 ($303.03) and select up $2.54 ($292.94) with a movement of 149 loads (84.16 loads of choice, 21.10 loads of select, 16.86 loads of trim and 27.04 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that Southern cattle have begun to trade for steady prices, the week's trend is likely set.
FEEDER CATTLE:
The feeder cattle complex grew weary as the market had little technical support backing its market throughout Wednesday's trade. Between seeing the live cattle contracts trade tiredly and the corn complex trading $0.04 to $0.05 higher in its nearby contracts, the contracts ultimately closed lower despite the market still seeing tremendous demand in the countryside. March feeders closed $3.40 lower at $249.60, April feeders closed $3.85 lower at $255.10 and May feeders closed $3.35 lower at $257.97. At Winter Livestock Auction in Dodge City, Kansas, compared to last week and at its midsession point, feeder heifers weighing over 600 pounds sold for $7 to $12 higher, while eight-weight steers were selling for $5 to $9 more. Feeder cattle supply over 600 pounds was 88%. The CME feeder cattle index for Feb. 27: Down $0.09, $91.23.
LEAN HOGS:
The lean hog complex closed higher as the market found some technical strength after closing lower earlier in the week. April lean hogs closed $0.10 higher at $86, June lean hogs closed $0.22 higher at $99.55 and July lean hogs closed $0.35 higher at $100.80. It was disappointing, however, to see pork cutout values end the day lower. With a $7.99 drop in the belly, the carcass price stood little chance of seeing a positive ending value. Thursday's export report will hopefully continue to encourage the market. Pork cutouts totaled 276.22 loads with 226.37 loads of pork cuts and 49.85 loads of trim. Pork cutout values: Down $1.53, $90.34. Wednesday's slaughter is estimated at 491,000 head, 1,000 head more than a week ago and 21,000 head more than a year ago. The CME lean hog index Feb. 26: Up $0.32, $79.78.
THURSDAY'S HOG CALL: Steady to somewhat lower. Given that cash prices have closed higher two days in a row, it likely means that Thursday's market won't see as much interest and prices could be lower.
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