GENERAL COMMENTS:
The livestock complex is trading fully higher into Friday's noon hour. The cash cattle market has now seen cattle traded in both regions and prices are ranging anywhere from $1.00 to $4.00 higher. May corn is up 3 3/4 cents per bushel and May soybean meal is down $4.20. The Dow Jones Industrial Average is down 198.23 points.
LIVE CATTLE:
Upon seeing cash cattle trade developing in both regions, the live cattle contracts are back to trading higher following Thursday's disappointing end. Already this morning there's been a light trade noted in Kansas and Texas at $186 which is $1.00 higher than last week's weighted average. Northern cattle are currently selling at $298 in Nebraska, which is $4.00 higher than last week's weighted average. More cattle will likely trade throughout the day, but these prices are likely to become the week's weighted average. April live cattle are up $0.25 at $187.20, June live cattle are up $0.15 at $183.52 and August live cattle are up $0.50 at $182.60.
Boxed beef prices are higher: choice up $0.74 ($311.52) and select up $0.66 ($302.35) with a movement of 54 loads (42.94 loads of choice, 5.80 loads of select, zero loads of trim and 4.82 loads of ground beef).
FEEDER CATTLE:
Even though the corn complex is trading $0.03 to $0.04 higher, the feeder cattle market is finding support in the fact that live cattle/cash cattle markets are trading higher. It was nerve-racking to watch the feeder cattle complex trade Thursday afternoon as the market came close to breaking below the 40-day moving average, but thankfully the market did indeed close above that threshold and has been able to remain above through Friday's trade. March feeders are up $1.50 at $248.97, April feeders are up $0.72 at $251.92 and May feeders are up $0.77 at $255.60.
LEAN HOGS:
The lean hog complex has used Friday's hours as an opportunity to launch higher as the nearby contracts are trading where from $1.00 to $2.00 higher. April lean hogs are up $2.00 at $87.00, June lean hogs are up $0.82 at $102.25 and July lean hogs are up $1.07 at $104.57. The market should be able to maintain this strength through the afternoon as midday cash prices and pork cutout values are higher. Not to mention, the market is still far enough from resistance that topside pressure shouldn't gravely affect the market today.
The projected lean hog index is delayed from the source. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.79 with a weighted average price of $80.74, ranging from $73.00 to $83.25 on 1,800 head and a five-day rolling average of $79.49. Pork cutouts total 214.61 loads with 199.08 loads of pork cuts and 15.53 loads of trim. Pork cutout values: up $0.94, $94.19.
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