GENERAL COMMENTS:
The livestock complex is trading with weaker tones as the market desperately longs for support. The cash cattle market still hasn't seen any substantial trade develop, and it's looking like trade could be delayed until Friday. May corn is down 7 1/2 cents per bushel and May soybean meal is down $0.30. The Dow Jones Industrial Average is down 66.60 points.
Thursday's export report shared that beef net sales of 11,200 metric tons (mt) for 2024, a marketing year low, were down 20% from the previous week and 19% from the prior four-week average. The three largest buyers were Taiwan (2,300 mt), Japan (2,300 mt) and Mexico (1,700 mt). Pork net sales of 24,900 mt for 2024 were down 32% from the previous week and 24% from the previous four-week average. The three largest buyers were Japan (5,700 mt), South Korea (4,100 mt) and China (3,900 mt).
LIVE CATTLE:
After pressuring resistance levels with Wednesday's close, the live cattle market is back to trading lower as the market desperately needs a reason to trade higher. One could argue that higher boxed beef prices should be supportive, but with the morning's weak export sales report, the market is needing more substantial positive news to move the market. The cash cattle market hasn't lent much support either as the market has yet to trade. A few bids are currently being offered in Nebraska at $292, but no feedlots have jumped on that bid. Asking prices in the North are firm at $300 and in the South feedlots are asking $188. Packer interest could improve this afternoon but it's just as likely that trade is delayed until Friday. April live cattle are down $2.30 at $187.65, June live cattle are down $1.87 at $184.17 and August live cattle are down $1.70 at $182.65.
Boxed beef prices are higher: Choice up $1.05 ($310.87) and select up $0.40 ($301.44) with a movement of 54 loads (28.92 loads of choice, 10.18 loads of select, 5.66 loads of trim and 9.40 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is back to trading lower as the market isn't seeing the support it needs from the live cattle market. The live cattle market is trading lower as the market wasn't impressed with the morning's export report and has yet to see any substantial cash cattle trade develop. Consequently, this all bode negatively for the feeder cattle market as it continues to look directly to the live cattle market for a direction. March feeders are down $1.85 at $248.42, April feeders are down $2.62 at $253.22 and May feeders are down $2.25 at $256.35.
LEAN HOGS:
Truthfully, the lean hog market isn't sure what to do with itself as trading was mixed thus far through Thursday's trade. The market received a lukewarm export report, which didn't help or hurt the market. Pork cutout values are higher and so are cash prices, but traders know that the day's afternoon pork cutout values are what matters. But thankfully following Tuesday's sharp surge, the market has been able to mostly maintain the position gained there. April lean hogs are down $0.05 at $84.82, June lean hogs are down $0.27 at $101.45 and July lean hogs are down $0.10 at $103.62.
The projected lean hog index for March 13 is up $0.17 at $82.19, and the actual index for March 12 is up $0.41 at $82.02. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.57 with a weighted average price of $79.95, ranging from $74 to $81.50 on 4,780 head and a five-day rolling average of $78.96. Pork cutouts total 103.67 loads with 91.43 loads of pork cuts and 12.24 loads of trim. Pork cutout values: Up $1.73, $93.69.
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