GENERAL COMMENTS:
Even though the cash cattle market is beginning to trade, cattle contracts haven't been able to shake their lower trend so far through Thursday's trade. Early sales have been reported in the South at $188, $2 higher than last week's weighted average. May corn is down 1/2 cent per bushel and May soybean meal is up $1.30. The Dow Jones Industrial Average is up 327.49 points.
Thursday's export report shared that beef net sales of 11,000 metric tons (mt) for 2024 -- a marketing year low -- were down 2% from the previous week and 12% from the prior 4-week average. The three largest buyers were South Korea (4,300 mt), China (2,100 mt) and Japan (2,000 mt). Pork net sales of 33,800 mt for 2024 were up 36% from the previous week and 10% from the prior 4-week average. The three primary buyers were Mexico (9,200 mt), Canada (8,900 mt) and Japan (5,500 mt).
LIVE CATTLE:
The live cattle complex traded across the board this morning as the market initially traded higher but as Thursday's noon hour nears, the market is back to trading lower. April live cattle are down $0.12 at $187.75, June live cattle are down $0.75 at $184.02 and August live cattle are down $0.85 at $182.85.
It's surprising to see the complex trading lower given that some news has finally developed in the cash market. A light trade is currently being reported in the South at $188, $2 higher than last week's weighted average. The North has yet to trade any cattle and feedlots there are likely holding out for even more money. There are some bids in the North at $302, but feedlots haven't let cattle sell yet in that region. There was a fire last night in the reefer unit at National Beef's processing plant in Liberal, Kansas, but it should not affect production.
Boxed beef prices are higher: choice up $1.04 ($314.48) and select up $1.04 ($303.75) with a movement of 49 loads (24.17 loads of choice, 8.97 loads of select, 4.03 loads of trim and 12.13 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is also trading lower as traders can't seem to shake the weaker tone they possessed earlier in the week. Thankfully, some light cash cattle trade has been reported, which could spark traders' interest this afternoon and help prices rebound slightly.
April feeders are down $0.17 at $254.75, May feeders are down $0.27 at $258.52 and August feeders are down $0.32 at $268.95.
LEAN HOGS:
Even with a moderately supportive export report, the lean hog complex continues to trade lower. Part of traders' apprehension could be that not only are morning pork cutout values lower, but two of the cuts (belly and rib) are down over $9 each. April lean hogs are down $0.57 at $84.72, June lean hogs are down $1.55 at $99.07 and July lean hogs are down $1.75 at $101.55.
The projected lean hog index for March 20 is up $0.33 at $83.54 and the actual index for March 19 is up $0.39 at $83.21. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.12 with a weighted average price of $80.85 on 2,518 head and a five-day rolling average of $80.52. Pork cutouts total 115.09 loads with 98.77 loads of pork cuts and 16.32 loads of trim. Pork cutout values: down $1.67, $90.51.
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