GENERAL COMMENTS:
The livestock complex is trading mixed as the live cattle and lean hog contracts are trading mildly higher, but the feeder cattle complex can't trade higher while corn prices are up $0.13 to $0.15. No new cash cattle trade has been reported yet, but packer interest is expected to develop throughout the day. May corn is up 15 3/4 cents per bushel and May soybean meal is down $1.90. The Dow Jones Industrial Average is up 23.21 points.
Thursday's export report shared that beef net sales of 12,700 mt for 2024 were up 15% from the previous week and 4% from the previous 4-week average. The three primary buyers were South Korea (3,400 mt), Japan (3,400 mt) and China (2,000 mt). Pork net sales of 55,300 mt for 2024 -- a marketing year high -- were up 64% from the previous week and 74% from the prior 4-week weighted average. The three primary buyers were Mexico (32,800 mt), Japan (5,700 mt) and Australia (5,400 mt).
LIVE CATTLE:
The live cattle complex is trading higher as the market is hoping that today's cash cattle trade will fight for steady prices. There were some cattle traded in the South at $186 plus Wednesday afternoon, but there weren't enough traded to say that the market has established any sort of trend. Packers would love to move the week's weighted average down $1.00 or $2.00, but feedlots are equally convicted to keeping prices as strong as possible. Asking prices in the South are noted at $186 plus, and in the North at $300 to $302. April live cattle are up $0.72 at $184.32, June live cattle are up $0.85 at $179.47 and August live cattle are up $0.90 at $177.57.
Boxed beef prices are mixed: choice down $0.28 ($308.30) and select up $2.68 ($301.11) with a movement of 88 loads (62.09 loads of choice, 9.14 loads of select, zero loads of trim and 16.31 loads of ground beef).
FEEDER CATTLE:
With nearby corn prices rallying $0.13 to $0.15, the feeder cattle complex is back in retreat mode as the market hits another hurdle. The live cattle complex is trading higher and lending some technical support, but with corn prices up considerably, feeders aren't finding much support in today's market. April feeders are down $0.50 at $246.37, May feeders are down $0.57 at $247.70 and August feeders are up $0.07 at $257.97.
LEAN HOGS:
Given the marketing year high reported in this morning's export report, the lean hog complex is rallying into Thursday's noon hour with expectations that the day's supportive nature will continue through the afternoon and into the Quarterly Hogs and Pigs report. April lean hogs are up $0.87 at $86.90, June lean hogs are up $0.70 at $102.27 and July lean hogs are up $0.57 at $104.55. Demand is also spilling in from the morning's higher note in pork cutout values, which is surprising given that the rib alone dropped $7.02.
The projected lean hog index for 3/27/2024 is up $0.39 at $84.64 and the actual index for 3/26/2024 is up $0.56 at $84.25. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.48 with a weighted average price of $81.50, ranging from $74.50 to $84.00 on 2,345 head and a five-day rolling average of $80.89. Pork cutouts total 119.59 loads with 101.74 loads of pork cuts and 17.85 loads of trim. Pork cutout values: up $0.71, $94.77.
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