GENERAL COMMENTS:
It was another lackadaisical day for the livestock complex as traders paid little attention to contracts and the cash cattle market has yet to really trade. On Thursday, cash cattle interest should improve and export will be a highly sought item as well. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.59 with a weighted average price of $76.22 on 7,667 head. May corn is up 2 1/2 cents per bushel and May soybean meal is up $0.50. The Dow Jones Industrial Average is up 75.86 points.
LIVE CATTLE:
It was another quiet day for the live cattle complex as traders paid the contracts little attention. Although packers threw out some bids in the South, few cattle traded as packers and feedlots have yet to agree on a price this week. April live cattle closed $0.75 lower at $187.25, June live cattle closed $0.25 lower at $183.27 and August live cattle closed $0.37 lower at $182.40. Packers offered some bids in the South at $182, but with southern feedlots asking for $186 to $187, the market has yet to reach a substantial volume of cattle traded. Asking prices remain elusive in the North but interest should improve on Thursday. It was supportive, however, to see boxed beef prices close higher as choice cuts have seen some pressure as of late.
Wednesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week and a year ago.
Boxed beef prices closed higher: Choice up $0.12 ($304.91) and select up $0.22 ($295.09) with a movement of 108 loads (63.82 loads of choice, 18.35 loads of select, 6.91 loads of trim and 18.42 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Feedlots don't seem to be in a rush to move cattle, and with boxed beef prices remaining steady, packers could end up giving steady money.
FEEDER CATTLE:
It wasn't an overly joyous day for the feeder cattle complex as the market closed lower, thanks to a lack of trader interest. Feeder cattle buyers continue to show tremendous interest in sales as they know that as soon as grass begins to appear this spring, feeder cattle prices will likely rise. But with the live cattle complex closing lower and corn prices able to push $0.02 to $0.04 higher ahead of closing, feeders stood little chance of closing higher at Wednesday's end. March feeders closed $1.27 lower at $251.02, April feeders closed $1.30 lower at $255.87 and May feeders closed $0.92 lower at $257.77. At Winter Livestock Auction in La Junta, Colorado, compared to last week, feeder steers under 550 pounds sold unevenly steady but steers over 550 pounds traded mostly $2 to $13 higher. Feeder heifers sold $3 to $8 higher. Feeder cattle supply over 600 pounds was 76%. The CME feeder cattle index March 5: Down $0.20, $246.90.
LEAN HOGS:
Both the cash market and pork cutout values rounded out the day higher but they weren't enough to convince traders to support lean hog contracts and allow the market to close higher Wednesday afternoon. April lean hogs closed $0.17 lower at $85, June lean hogs closed $1.10 lower at $100.50 and July lean hogs closed $0.77 lower at $102.40.
The biggest surprise in Wednesday's market was that over 6,000 head of cash hogs sold and prices advanced by $3.48 -- indicating that packers were short-bought and in need of hogs. Pork cutouts total 277.31 loads with 250.67 loads of pork cuts and 26.64 loads of trim. Pork cutout values: Up $0.06, $91.49. Wednesday's slaughter is estimated at 488,000 head -- 3,000 head less than a week ago and 9,000 head more than a year ago. The CME lean hog index March 4: Up $0.46, $80.87.
THURSDAY'S HOG CALL: Steady. Given that packers had to support Wednesday's market more than usual, they likely purchased most of the hogs they needed and the latter part of the week won't see strong of support.
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