GENERAL COMMENTS:
It was another lackluster day throughout the livestock complex as traders paid the market little attention. Still, no cash cattle trade has developed and trade will likely be delayed until Thursday. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.12 with a weighted average price of $80.78 on 9,406 head. May corn is up 3 1/2 cents per bushel and May soybean meal is up $2. The Dow Jones Industrial Average is up 320.33 points.
LIVE CATTLE:
Watching Tuesday's market develop in the live cattle complex was about as exciting as watching paint dry on a wall. Simply put, the bullish train in the market is currently the cash complex, and until traders see what this week's cash market does, there won't likely be much to report regarding the futures complex.
It's anticipated that cash prices will trade $1 higher this week as tremendous consumer demand is continuing to fuel boxed beef prices. April live cattle closed $0.52 lower at $188.05, June live cattle closed $0.40 lower at $185 and August live cattle closed $0.32 lower at $184.02. Still, no cash cattle trade developed and trade will likely be delayed until Thursday. Asking prices in the South are noted at $188-plus but remain unestablished in the North.
Tuesday's slaughter is estimated at 122,000 head -- steady with a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: Choice down $0.11 ($313.22) and select up $0.13 ($303.18) with a movement of 138 loads (100.92 loads of choice, 14.14 loads of select, 8.05 loads of trim and 14.80 loads of ground beef).
WEDNESAY'S CATTLE CALL: $1 Higher. It's unlikely that trade will develop on Wednesday, but when it does, higher prices are likely.
FEEDER CATTLE:
Despite the feeder cattle complex continuing to tremendous demand in sales in the countryside, the futures complex traded half-heartedly as the market seems to wait to see what the cash cattle complex does this week. And with live cattle contracts closing in a lackluster manner, feeders didn't dare to do anything different. April feeders closed $0.02 lower at $255.07, May feeders closed $0.20 lower at $258.92 and August feeders closed $0.10 higher at $269.82.
At Oklahoma National Stockyards in Oklahoma City, compared to last week, feeder steers traded $2 to $6 higher, but steers over 900 pounds sold steady. Feeder heifers traded steady to $5 higher. Stocker cattle and calves sold $5 to $15 higher, with those suitable for grass selling up to $30 higher. Demand was noted to be strong for feeder cattle, but extremely strong for stockers and calves. Feeder cattle supply over 600 pounds was 72%. The CME feeder cattle index March 18: Up $0.16, $251.02.
LEAN HOGS:
Even with pork cutout values and cash prices closing higher, the lean hog contracts simply didn't possess enough gusto to end the day higher. The market's nearby contracts all closed lower, although some of the deferred months were able to close mildly higher. At this point, the market's resistance is simply too strong for traders to take out the existing top.
April lean hogs closed $1 lower at $85.82, June lean hogs closed $1.77 lower at $101.25 and July lean hogs closed $1.35 lower at $103.95. It was rather impressive to see over 9,000 head traded in Tuesday's cash market.
Pork cutouts totaled 269.36 loads with 247.27 loads of pork cuts and 22.09 loads of trim. Pork cutout values: up $0.21, $93.37. Tuesday's slaughter is estimated at 491,000 head -- 7,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index March 15: Up $0.20, $82.54.
WEDNEDSAY'S HOG CALL: Steady. Following Tuesday's impressive trade, packers may keep the market steady as it's likely they still need hogs but not to the degree at which prices will trade higher again.
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