GENERAL COMMENTS:
It's a new week and the livestock complex is taking a higher approach to the marketplace so far today. It's most surprising to see the lean hog complex rallying to the degree in which long-term resistance could be taken out given that last Thursday's quarterly report was neutral to somewhat bearish. May corn is down 6 cents per bushel and May soybean meal is down $4.90. The Dow Jones Industrial Average is down 254.50 points.
LIVE CATTLE:
The live cattle complex traded back and forth throughout the day's first half, but as the market nears Monday's noon hour, nearby contracts are trading mostly higher. The market has been recently pressured by the nervousness surrounding the HPAI flu affecting dairy cattle and by the pullback of traders as hesitancy and cautiousness seem to be the futures market's theme despite the market's bullish fundamentals not having changed. April live cattle are up $0.17 at $185.17, June live cattle are up $0.10 at $180.40 and August live cattle are up $0.02 at $178.22. It's still too early for any cash cattle trade to have developed, and it's not expected that any trade will develop ahead of Wednesday. New showlists appear to be mixed: higher in Kansas and Nebraska/Colorado, but lower in Texas.
Last week, southern live cattle traded at $183 to $188, though mostly at $186, $2 lower than the previous week's weighted average. Northern dressed cattle sold for $297 to $302, but mostly at $298 to $300, $2 to $3 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 63,695 head. Of that, 80% (51,005 head) were committed to the nearby delivery while the remaining 20% (12,690 head) were committed to the deferred delivery.
Boxed beef prices are lower: choice down $1.67 ($305.05) and select down $1.27 ($302.16) with a movement of 38 loads (20.35 loads of choice, 7.03 loads of select, 4.69 loads of trim and 5.66 loads of ground beef).
FEEDER CATTLE:
With the support of the live cattle complex trading higher, feeder cattle market is also trading higher into today's noon hour. Moisture this time of year can be a double-edged sword for cow-calf producers as moisture can be tough on newborn calves, but the promise of moisture for the summer grazing months puts a lot of ranchers' minds at ease. With the support of the higher trading futures complex and added moisture over the weekend, feeder cattle sales could be stronger again this week. April feeders are up $0.90 at $248.02, May feeders are up $1.57 at $250.27 and August feeders are up $1.20 at $260.02.
LEAN HOGS:
The lean hog complex is rocking and rolling through Monday's trade -- so much so that the complex is close to taking out long-term resistance in many of the nearby contracts. Even though Thursday's Quarterly Hogs and Pigs report was thought to be neutral to somewhat bearish, traders don't seem to mind. April lean hogs are up $1.12 at $87.75, June lean hogs are up $2.62 at $104.07 and July lean hogs are up $1.95 at $105.95.
The projected lean hog index for March 29 is up $0.18 at $84.78 and the actual index for March 28 is down $0.04 at $84.60. Hog prices on the Daily Direct Morning Hog Report average $81.32, ranging from $79.50 to $82 on 240 head and a five-day rolling average of $80.99. Pork cutouts total 116.55 loads with 91.95 loads of pork cuts and 24.60 loads of trim. Pork cutout values: up $5.77, $99.43.
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