Friday Midday Livestock Market Summary - Traders Hesitate Ahead of Cattle on Feed Report

GENERAL COMMENTS:

The cattle complex is braced for this afternoon's Cattle on Feed report expected to showcase higher placements, which normally negatively impacts the market. No more cash cattle trade has developed until some more clean-up trade could develop ahead of the week's end. May corn is down 2 cents per bushel and May soybean meal is down $5.30. The Dow Jones Industrial Average is down 218.15 points.

LIVE CATTLE:

The live cattle complex continues to trade lower as the market expects this afternoon's Cattle on Feed report to showcase greater placements. Even though the industry logically understands why placements were greater in February -- because of weather delays prolonging placements in January -- the market still is uneasy heading into Friday afternoon. No more cash cattle sales have been reported at this point, but, likely, some more clean-up trade develops ahead of the week's end.

So far this week, Southern live cattle have traded for $188, $2 higher than last week's weighted average, and Northern dressed cattle have traded for $302, $4 higher than last week's weighted average. April live cattle are down $0.50 at $187.87, June live cattle are down $0.77 at $183.72 and August live cattle are down $0.90 at $182.37.

National Beef Packing Co. did share a statement this morning that processing at the Liberal, Kansas, plant will be delayed until Monday.

Boxed beef prices are mixed: choice down $2.18 ($311.55) and select up $0.99 ($304.72) with a movement of 46 loads (26.35 loads of choice, 3.48 loads of select, 6.76 loads of trim and 9.78 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is also trading lower as traders seem to hold their breath ahead of this afternoon's COF report. Traders won't be able to trade on the report's findings until Monday, but they're cautiously trading today. Gloomy tones continue to be the market's theme technically despite all the fundamental power and support the market possesses. April feeder cattle are down $1.70 at $252.92, May feeder cattle are down $1.42 at $256.65 and August feeders are down $1.02 at $267.37.

LEAN HOGS:

The lean hog complex is finally trading higher as the market had endured a mostly pressured market this week. Without steady and consistent consumer demand, traders have been leery trading in the market any higher. Thankfully, midday pork cutout values are higher right now, but the rib continues to be a wild card as it printed $15.93 higher on the morning report. April lean hogs are down $0.47 at $84.42, June lean hogs are up $0.22 at $99.55 and July lean hogs are up $0.10 at $102.

The projected lean hog index March 21 is up $0.05 at $83.59, and the actual index for March 20 is up $0.33 at $83.54. Hog prices are lower on the Daily Direct Morning Hog report, down $0.33 with a weighted average price of $80.52, ranging from $74 to $82 on 1,646 head and a five-day rolling average of $80.48. Pork cutouts total 147.82 loads with 127.36 loads of pork cuts and 20.46 loads of trim. Pork cutout values: up $2.51, $94.59.