GENERAL COMMENTS:
The cattle contracts were able to close slightly higher following Tuesday's sharp descent. The cash cattle market still hasn't seen much trade develop -- but packer interest should improve by Thursday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.37 with a weighted average price of $79.26 on 3,044 head. May corn is down 5 3/4 cents per bushel and May soybean meal is down $0.80. The Dow Jones Industrial Average is up 477.75 points.
LIVE CATTLE:
The live cattle complex was able to round the day out on a higher note – but given the severity of Tuesday's decline, today's higher end is hardly worth noting. Traders allowed the contracts to rally mildly, but with cash cattle prices expected to be lower than last week's record high, traders won't likely do much more with the futures complex ahead of the weekend. April live cattle closed $0.50 higher at $183.60, June live cattle closed $0.30 higher at $178.67 and August live cattle closed $0.25 higher at $176.67. There's been a handful of trade reported in the South at $185 which is $3.00 lower than last week's weighted average. Bids of $296 are currently being offered in the North but no dressed trade has been reported at this point. Asking prices remain firm in the South at $188 plus, and asking prices are still not established in the North.
Wednesday's slaughter is estimated at 124,000 head -- 8,000 head more than a week ago but 1,000 head less than a year ago.
Boxed beef prices closed lower: choice down $2.51 ($308.58) and select down $1.83 ($298.43) with a movement of 166 loads (103.87 loads of choice, 24.00 loads of select, 5.45 loads of trim and 32.19 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $1.00 lower. Packer interest will need to improve on Thursday, and even though prices are currently being noted at $3.00 lower in the South, there's still a chance that prices could trade closer to last week's weighted average before the week's trade is all said and done.
FEEDER CATTLE:
The feeder cattle complex was also able to regain some market position following Tuesday's landslide. The nearby contracts of April and May say the biggest gains, but then the entire complex did round out the day higher. Sales in the countryside seemed to be a little stronger today and it's worth noting how strong cull bull and cow prices are. At Winter Livestock in Dodge City today a high-yielding cull bull brought $1.75 per pound! April feeders closed $1.42 higher at $246.87, May feeders closed $1.02 higher at $248.27 and August feeders closed $0.80 higher at $257.90. At Winter Livestock Auction in Dodge City, Kansas compared to last week feeder steers weighing 850 to 950 pounds traded steady to $4.00 higher. Steers weighing 650 to 850 pounds sold unevenly steady. Steer calves weighing 450 to 650 pounds sold $8.00 to $10.00 higher. Feeder heifers weighing 450 to 900 pounds traded $4.00 to $8.00 lower. Slaughter cows sold steady to $3.00 higher, and slaughter bulls sold $10.00 to $12.00 higher. Feeder cattle supply over 600 pounds was 78%. The CME feeder cattle index 3/26/2024: not available at this time.
LEAN HOGS:
The lean hog complex mostly kept with its rallying nature through Wednesday's end although the deferred contracts pulled back ever so slightly. The market seems to be holding its breath until the veil is pulled back on Thursday's Quarterly Hogs and Pigs report. I'm not certain that the report will be bullish enough to take out the market's long-term resistance, but hog enthusiasts can hope. Export sales will also play a big role in Thursday's trade direction. Pork cutout prices closed lower again but no one cut was to blame as the market saw a decline in the vast majority of the cuts. April lean hogs closed $0.52 higher at $86.10, June lean hogs closed $0.25 higher at $101.60 and July lean hogs closed $0.12 lower at $103.97. Pork cutouts totaled 230.10 loads with 190.15 loads of pork cuts and 39.95 loads of trim. Pork cutout values: down $1.27, $94.06. Wednesday's slaughter is estimated at 490,000 head -- steady with a week ago and 13,000 head more than a year ago. The CME lean hog index 3/25/2024: up $0.21, $83.69.
THURSDAY'S HOG CALL: Lower. Given that tomorrow is the last trading day of the week and packers are going into a long holiday weekend, it's unlikely that they show Thursday's cash market much interest.
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