Friday Midday Livestock Market Update - Feedlot Managers Continue to Hold Out for Higher Fed Cattle Prices

GENERAL COMMENTS:

The livestock complex is again trading mixed as the cattle contracts continue to trade higher, but aside from the spot April contract, most of the lean hog contracts are trading lower. Bids are currently being offered throughout the countryside, but still no cash cattle trade has developed. May corn is down 7 3/4 cents per bushel and May soybean meal is down $1.10. The Dow Jones Industrial Average is up 531.12 points.

LIVE CATTLE:

Although traders are still waiting to see how this week's cash cattle trade is going to pan out, the live cattle contracts are trading mildly higher as bullish undertones continue to be the theme of its market. April live cattle are up $0.62 at $202.65, June live cattle are up $0.75 at $199.02 and August live cattle are up $0.60 at $196.57. Bids are currently being offered in the North at $202 to $205 live and $320 to $322 dressed, but still no trade has taken place. Asking prices are noted in the South at $202 to $204 and in the North at $325 plus. But at any point now, trade could break loose and begin to develop.

Boxed beef prices are lower: choice down $1.82 ($317.87) and select down $1.15 ($306.32) with a movement of 58 loads (32.93 loads of choice, 2.67 loads of select, 5.79 loads of trim and 16.66 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is continuing to trade higher as the market is well supported by the live cattle complex's higher front and by continued support in strong feeder cattle demand in the countryside. March feeders are up $1.25 at $281.47, April feeders are up $0.52 at $280.50 and May feeders are up $0.57 at $282.10. So long as the live cattle complex continues to trade higher and fed cash cattle prices trade anywhere from steady to somewhat higher, it's likely the feeder cattle complex will be able to keep its momentum through the day's end.

LEAN HOGS:

The lean hog complex is trading mixed as the nearby contracts are trading mildly higher thanks to the uptick in pork cutout values, but the deferred contracts remain leery of being too supportive and continue to trade lower. April lean hogs are up $0.75 at $86.37, June lean hogs are down $0.27 at $95.92 and July lean hogs are down $0.27 at $97.00. It's positive to note that this morning on the pork cutout report every single cut printed higher, which is a good sign of robust consumer demand.

The projected lean hog index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $89.70, ranging from $85.50 to $94.00 on 1,484 head with a five-day rolling average of $90.04. Pork cutouts total 179.29 loads, with 168.09 loads of pork cuts and 11.20 loads of trim. Pork cutout values: up $2.19, $99.48.