GENERAL COMMENTS:
The livestock complex is trading cautiously Monday as traders look for support before they engage much in this week's market. Packers were able to get some cattle bought with time last week, which could pressure this week's cash market. May corn is up 3 3/4 cents per bushel and May soybean meal is up $0.40. The Dow Jones Industrial Average is down 51.08 points.
LIVE CATTLE:
Live cattle futures are lower as traders wait to see what develops in favor of the market following Friday's aggressive rally. It's supportive already that boxed beef prices are continuing to trade higher, but traders are reluctant to overly back the market this morning. April live cattle are down $0.75 at $187.70, June live cattle are down $0.77 at $183.22 and August live cattle are down $0.30 at $182.40. No cash cattle trade has developed and it's likely business is delayed until the second half of the week.
Last week's negotiated cash cattle trade totaled 71,697 head. Of that 79% (56,501 head) were committed to the nearby delivery, while the remaining 21% (15,196 head) were committed to the deferred delivery. Last week Southern live cattle sold for mostly $183, steady with the previous week's weighted average, and Northern dressed cattle traded for mostly $290, $2 lower than last week's weighted average.
Boxed beef prices are higher: choice up $1.39 ($306.67) and select up $1.61 ($297.35) with a movement of 30 loads (17.36 loads of choice, 6.34 loads of select, zero loads of trim and 6.33 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are trading lower as the market takes note of the $0.04 to $0.07 increase in nearby corn prices. March feeders are down $1.15 at $251.82, April feeders are down $1 at $257.00 and May feeders e down $1.22 at $258.95. Without the support of a stronger live cattle complex, it's tough for feeder cattle contracts to trade higher when the corn complex is inflicting pressure.
LEAN HOGS:
Like the cattle contracts, the lean hog market is trading under some pressure, although some deferred contracts are trading slightly higher. April lean hogs are down $1.25 at $86.82, June lean hogs are steady at $102.05 and July lean hogs are up $0.20 at $103.22. It makes perfect sense that the nearby contracts are taking a cautious approach to Monday's market given that Friday's market charged to resistance and given that traders have yet to see what the demand outlook for this week is going to be.
The projected CME Lean Hog Index for 3/1/2024 is up $0.15 at $80.41, and the actual index for 2/29/2024 is up $0.11 at $80.26. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.83 with a weighted average price of $73.25, ranging from $71.00 to $75.00 on 534 head and a five-day rolling average of $71.80. Pork cutouts total 137.62 loads with 119.17 loads of pork cuts and 18.45 loads of trim. Pork cutout values: down $0.18, $94.27.
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