GENERAL COMMENTS:
The livestock complex sees mixed interest as the market sees apprehension from traders in the market's nearby contracts but in all three of the markets (live cattle, feeder cattle, lean hogs), the deferred contracts are trading mildly higher. More than anything, the market seems to be off to a slow start as traders look for support but aren't seeing much surface at Monday's beginning. May corn is up 3/4 cent per bushel and May soybean meal is down $4.40. The Dow Jones Industrial Average is down 52.61 points.
LIVE CATTLE:
The live cattle complex is trading mostly lower as the market looks for support, but at this point, sufficient support to advance the market out of its sideways trading range hasn't surfaced. April live cattle are up $0.32 at $187.92, June live cattle are down $0.20 at $183.22 and August live cattle are down $0.05 at $182.20.
Last week's slaughter was light again as the week's total volume only totaled 583,000 head, and rumors are floating around that packers intend to cut kills even more dramatically this week. With that being the case, it's likely the cash cattle market will trade steadily at best this week. New showlists appear to be mixed, higher in Nebraska/Colorado but lower in Kansas and Texas.
Last week, Northern dressed cattle sold for $290 to $300, but mostly at $292 to $294 which is $2 to $4 higher than the previous week. Southern live cattle waited to trade until Friday, but trade ranged from $178 to $186 but was mostly at $185 which is $2 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 76,364 head. Of which 68% (51,969 head) were committed to the nearby delivery, while the remaining 32% (24,395 head) were committed to the deferred delivery.
Boxed beef prices are mixed: choice up $1.48 ($308.52) and select down $0.21 ($297.22) with a movement of 44 loads (25.20 loads of choice, 8.02 loads of select, zero loads of trim and 11 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading mixed as the market's nearby contracts are trading slightly lower while some of the deferred contracts are trading mildly higher. Last week, feeder cattle continued to trade higher in the countryside despite the board's back and forth, indecisive nature, and we will likely continue to see strong support in the countryside again this week as buyers know that finding grass cattle is going to be tough this year with supplies being tight. March feeders are down $0.90 at $248.30, April feeders are down $0.95 at $253.17 and May feeders are down $1 at $255.75.
LEAN HOGS:
The lean hog market is trading mixed with the market's deferred contracts trading slightly higher while the nearby contracts trail lower. Demand continues to be the market's main focus, and midday pork cutout values are higher, but traders know to wait and look for the market's closing pork cutout values before they access the demand outlook too thoroughly. April lean hogs are down $0.77 at $83.60, June lean hogs are down $0.37 at $101.45 and July lean hogs are down $0.12 at $103.57.
The projected lean hog index for March 8 is down $0.07 at $81.41, and the actual index for March 7 is steady at $81.48. Hog prices are higher on the Daily Direct Morning Hog Report, up $2.47 with a weighted average price of $76.35, ranging from $75.50 to $78 on 530 head and a five-day rolling average of $75.91 head. Pork cutouts total 128.35 loads with 110.38 loads of pork cuts and 17.97 loads of trim. Pork cutout values: up $3.65, $95.76.
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