GENERAL COMMENTS:
It was a positive day for the livestock complex as all three markets rounded out the week on a stronger note. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.82 with a weighted average price of $72.67 on 2,002 head. May corn is down 4 3/4 cents per bushel and May soybean meal is up $3.10. The Dow Jones Industrial Average is up 90.99 points.
From Friday to Friday, livestock futures scored the following changes: April live cattle up $0.55; June live cattle up $0.13; March feeder cattle down $1.60; April feeder cattle down $1.98; April lean hogs up $0.88, June lean hogs up $2.68; March corn up $0.13; and May corn up $0.11.
LIVE CATTLE:
It was a positive day for the live cattle complex with the spot April contract being able to close over $3 higher, thanks to late-week interest from traders and continued support in the boxed beef market. No new cash sales were reported as packers had already made most of their buys. Throughout the week, northern dressed cattle sold for mostly $290, which is $2 lower than last week's weighted average. Southern live cattle traded for mostly $183, which is steady with last week's weighted average. April live cattle closed $3.10 higher at $188.45, June live cattle closed $2.77 higher at $184 and August live cattle closed $2 higher at $182.70.
Friday's slaughter is estimated at 100,000 head -- 19,000 head less than a week ago and 16,000 head less than a year ago. Saturday's slaughter is projected to be around 4,000 head. The week's total slaughter is estimated at 599,000 head -- 6,000 head more than a week ago and 26,000 head less than a year ago.
Boxed beef prices closed higher: Choice up $1.08 ($305.28) and select up $1.56 ($295.74) with a movement of 103 loads (68.15 loads of choice, 9.13 loads of select, 5.24 loads of trim and 20.65 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Given that packers are cutting chain speeds significantly, it's likely next week's cash market will just trade steady.
FEEDER CATTLE:
The feeder cattle complex was able to close sharply higher as the market has found substantial technical support around $255 in the spot April contract. Between seeing better trader interest, live cattle contracts trade higher and corn prices close lower -- it was an easy decision for the feeder cattle market to trade higher. March feeders closed $3.97 higher at $252.97, April feeders closed $4.27 higher at $258 and May feeders closed $4.05 higher at $260.17. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week and throughout the state, feeder steers traded steady to $4 higher and feeder heifers sold $2 to $5 higher. Demand for feeder cattle was extremely good throughout the week, especially when you consider that the futures complex traded lower during the middle of the week. Steer calves traded $3 to $6 lower and heifer calves sold $1 to $6 lower. Slaughter cows sold $4 to $7 higher and slaughter bulls sold $4 higher as well. Feeder cattle supply over 600 pounds was 62%. The CME feeder cattle index Feb. 29: Up $0.74, $247.
LEAN HOGS:
The lean hog complex closed higher by Friday's end as the market rallied on strong pork interest and lower corn prices. Export demand has been especially exciting for the market here lately, but anytime domestic interest improves is a win. April lean hogs closed $1.45 higher at $88.07, June lean hogs closed $1.85 higher at $102.05 and July lean hogs closed $1.52 higher at $103. The afternoon carcass price did improve mostly because of a $20.59 jump in the belly, although the ham did close $3.66 higher and the rib gained $6.86. Pork cutouts totaled 307.32 loads with 289.61 loads of pork cuts and 17.71 loads of trim. Pork cutout values: Up $4.23, $94.45. Friday's slaughter is estimated 484,000 head -- 2,000 head more than a week ago and 19,000 head more than a year ago. Saturday's slaughter is projected to be around 106,000 head. The CME lean hog index Feb. 28: Up $0.24, $80.15.
MONDAY'S HOG CALL: Steady. Packers don't usually pay much attention to Monday's cash market, but they could be more active next week if pork demand remains strong.
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