Friday Closing Livestock Market Update - Mixed Day For The Complex

GENERAL COMMENTS:

It was a mixed day for the livestock complex as the cattle contracts closed slightly lower -- but the cash cattle market rallied $7.00 to $10.00 higher. Meanwhile the lean hog complex was also able to find some mild support ahead of the weekend, which helped its contracts close higher too. May corn is down 4 3/4 cents per bushel and May soybean meal is up $3.20. The Dow Jones Industrial Average is up 32.03 points

From Friday-to-Friday, livestock futures scored the following changes: April live cattle up $3.78, June live cattle up $3.43; March feeder cattle up $4.50, April feeder cattle up $3.78; April lean hogs down $0.50, June lean hogs up $1.18; May corn up $0.06, July corn up $0.04.

LIVE CATTLE:

The live cattle contracts may have closed lower as traders gently pulled back the reins on the market's wild rally this past week, but don't think for a second that Friday's market was a bust. For starters, even though futures traders were more timid throughout Friday's trade, the rally the live cattle contracts fronted this week was truly incredible as traders had to wait to see until Friday what the cash cattle market was going to do. And low and behold, the cash cattle market proved to be as bullish as trades believed it would be as prices traded anywhere from $7.00 to $10.00 higher. And depending on where the week's weighted averages land, it's very likely that new all-time highs were scored in both regions again this week. Throughout the day, Southern live cattle traded at mostly $210, which is $7.00 higher than last week's weighted average, and Northern dressed cattle traded at $335, which is $10.00 higher than last week's weighted average.

Friday's slaughter is estimated at 100,000 head -- 1,000 head more than a week ago and 8,000 head less than year ago. Saturday's slaughter is projected to be around 20,000 head. The week's total slaughter is estimated at 560,000 head -- 24,000 head less than a week ago and 32,000 head less than a year ago.

Boxed beef prices closed mixed: choice down $2.61 ($324.45) and select up $0.26 ($309.62) with a movement of 124 loads (82.69 loads of choice, 9.38 loads of select, 8.77 loads of trim and 22.71 loads of ground beef).

MONDAY'S CATTLE CALL: Steady. Before one can say what next week's trend is going to be, we need to see exactly how many cattle sold this past week.

FEEDER CATTLE:

The feeder cattle complex may have ventured lower throughout Friday's trade, but that was solely a technical decision as the market remained well supported on multiple fronts. Between the 18% decline in placements noted on this afternoon's Cattle on Feed report, to the $7.00 to $10.00 rally in the cash cattle market, the feeder cattle complex saw ample fundamental support which should again encourage steady if not higher trade again next week. March feeders closed $1.87 lower at $286.47, April feeders closed $3.47 lower at $284.97 and May feeders closed $4.00 lower at $285.10. And it would be remiss of me to neglect to mention how strong the buyer demand in the countryside has been this past week. More than anything, I believe buyers are soberly aware of the fact that turn-out season will be quickly approaching and it's likely feeder cattle prices will continue to get higher and higher through that time. At the Oklahoma Weekly Cattle Auction, compared to last week and throughout the entire state, feeder steers and heifers sold $2.00 to $10.00 higher. Feeder cattle supply over 600 pounds was 73%. The CME Feeder Cattle Index 3/20/2025: up $1.84, $287.78.

LEAN HOGS:

The lean hog complex was able to close mildly higher as the market was pleased to see some technical support come to fruition and was also supported by the day's higher cutout price. April lean hogs closed $0.57 higher at $86.12, June lean hogs closed $1.22 higher at $97.47, and July lean hogs closed $1.17 higher at $98.72. The market will again likely face resistance pressure next week at $88.00; which was a problematic threshold for the market this week. But if consumer demand is stronger, then there's a chance traders could elect to take on the technical pressure.

Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.99 with a weighted average price of $88.40 on 4,224 head. Pork cutout totaled 337.35 loads with 307.77 loads of pork cuts and 29.59 loads of trim. Pork cutout values: up $1.00, $96.86. Friday's slaughter is estimated at 472,000 head -- 2,000 head less than a week ago and 11,000 head less than a year ago. Saturday's slaughter is projected 158,000 head. The CME Lean Hog Index 3/19/2025: down $0.21, $89.20.

MONDAY'S HOG CALL: Lower. Packers are rarely aggressive in the cash market on Mondays.