GENERAL COMMENTS:
It was a strong day for the livestock complex as all three markets closed higher thanks to strong fundamental support. Come Friday, the market will still have a lot to sort through before the week ends as another WASDE report will be released and Southern live cattle have yet to trade. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.95 with a weighted average price of $77.17 on 2,980 head. May corn is up 9 1/4 cents per bushel and May soybean meal is up $4.00. The Dow Jones Industrial Average is up 130.30 points.
Thursday's export sales report shared that beef net sales of 14,000 metric tons (mt) for 2024 were up 14% from the previous week but down 10% from the previous four-week average. The three largest buyers were South Korea (4,300 mt), Japan (2,300 mt) and Taiwan (1,700 mt). Pork net sales of 36,400 mt for 2024 were up 12% from the previous week and 9% from the previous four-week average. The three largest buyers were China (12,600 mt), Mexico (11,200 mt) and Vietnam (5,000 mt).
LIVE CATTLE:
The live cattle complex was able to round out the day higher as traders ran with the fundamental support that came from stronger prices in the North on dressed cattle and continued strength in the boxed beef market. Northern dressed cattle traded throughout the afternoon for $292, which is $2.00 higher than last week's weighted average; the South has yet to trade any cattle. Asking prices in the South remain firm at $186 to $187. April live cattle closed $1.47 higher at $188.72, June live cattle closed $1.32 higher at $184.60, and August live cattle closed $1.10 higher at $183.50.
Thursday's slaughter is estimated at 122,000 head -- 1,000 head less than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.70 ($306.61) and select up $1.17 ($296.26) with a movement of 97 loads (63.49 loads of choice, 13.83 loads of select, 5.61 loads of trim and 14.11 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady/$2.00 higher. Given that prices were able to trade higher in the North, it's likely on Friday Southern prices will be able to trade higher too.
FEEDER CATTLE:
Even though the corn complex closed 8 to 9 cents higher, the feeder cattle complex was able to look past the higher corn prices and focus on the support that same from the live cattle/cash cattle markets. The live cattle market was able to keep pace through Thursday's end and close higher; and with cash prices being reported at $2.00 higher in the North, optimistic tones quickly resonated with cattlemen. March feeders closed steady at $251.02, April feeders closed $0.42 higher at $256.30 and May feeders closed $0.67 higher at $258.45. The CME Feeder Cattle Index 3/6/2024: not available at this time.
LEAN HOGS:
The lean hog market was able to closer mostly higher as the market found support in Thursday's export report and in the continued support of the cash hog market. The spot April contract was the only contract on the board to close lower, and that likely came as pork cutout values have been unpredictable. April lean hogs closed $0.47 lower at $84.52, June lean hogs closed $0.65 higher at $101.15, and July lean hogs closed $0.60 higher at $103.00. Pork cutouts totaled 300.53 loads with 282.43 loads of pork cuts and 18.10 loads of trim. Pork cutout values: down $0.34, $91.15. Thursday's slaughter is estimated at 474,000 head -- 9,000 head less than a week and year ago. The CME Lean Hog Index 3/5/2024: down $0.56, $81.31.
FRIDAY'S HOG CALL: Lower. Given that packers have been adamant supporters of the cash market earlier this week, it's likely they'll be less aggressive in Friday's trade.
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