GENERAL COMMENTS:
It was a phenomenal Monday for the livestock complex as all three of the markets were able to maintain their higher positions through the day's end. Again, this week, fundamental support will be crucial as traders need to ensure that the higher trend for the contracts is merited. May corn is up 2 3/4 cents per bushel and May soybean meal is down $2.10. The Dow Jones Industrial Average is down 890.01 points.
LIVE CATTLE:
The live cattle complex was able to maintain last week's rally and successfully closed the contracts fully higher Monday afternoon. But what was potentially even more thrilling than to see traders continue with their support of the live cattle contracts, was to see boxed beef prices close higher as well Monday afternoon. Last week the two biggest reasons why traders again supported the contracts were a slight increase in beef demand and the higher tone of the fed cash cattle market. If both of those two factors are higher again this week, the futures complex will likely continue to trade higher as well. April live cattle closed $0.30 higher at $200.57, June live cattle closed $0.75 higher at $197.22 and August live cattle closed $0.75 higher at $195.10. New showlists appear to be mixed, higher in Texas, but lower in Kansas, and Nebraska/Colorado. Monday's slaughter is estimated at 115,000 head -- 13,000 head more than a week ago and 4,000 head more than a year ago.
Last week Southern live cattle were marked anywhere from $196 to $198, which is $1.00 lower to $1.00 higher compared to the previous week. Northern dressed cattle sold for mostly $315, which is $2.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 74,437 head. Of that 91% (67,915 head) were committed to the nearby delivery, while the remaining 9% (6,522 head) were committed to the deferred delivery option).
Boxed beef prices closed higher: choice up $2.68 ($317.58) and select up $1.15 ($306.95) with a movement of 87 loads (58.66 loads of choice, 10.03 loads of select, 9.63 loads of trim and 8.72 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat higher. If boxed beef prices continue to trade higher this week, there's a chance that the cash market could trade steady/somewhat higher. But if demand doesn't shine through, it will be hard for feedlot managers to advance prices this week.
FEEDER CATTLE:
The feeder cattle complex was again able to round out the day higher as the market was thankful for the added support from higher boxed beef prices and the live cattle market's higher trend. Yes, the April feeder cattle contract did close slightly lower, but that stemmed from resistance pressure as the market is trading slightly above the high established late in January. And if traders are going to advance the contracts anymore, they want to see clear signs of ample support before they take on any more potential technical risk. March feeders closed $0.07 higher at $277.05, April feeders closed $0.22 lower at $277.92 and May feeders closed $0.35 higher at $278.55. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week and at their midsession point, feeder steers and heifers were selling $5.00 to $20.00 higher. Feeder cattle supply over 600 pounds was 58%. The CME feeder cattle index 3/7/2025: up $0.18, $273.95.
LEAN HOGS:
Even the lean hog complex was able to rally through Monday's close despite a slight dip in pork cutout values this afternoon. April lean hogs closed $0.95 higher at $88.30, June lean hogs closed $0.72 higher at $98.82 and July lean hogs closed $0.72 higher at $100.05. There weren't any major blows endured to the afternoon pork cutout report, as nothing closed more than $4.00 lower. But with a steady mix of some higher closes and lower closes on the individual cuts, a slight $0.14 decline was noticed on the carcass price. Tomorrow, the monthly WASDE report will be released, and hopefully, it showcases strong demand throughout the year. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.01 with a weighted average price of $88.90 on 2,587 head. Pork cutouts totaled 309.88 loads, with 271.62 loads of pork cuts and 38.26 loads of trim. Pork cutout values: down $0.14, $98.22. Monday's slaughter is estimated at 487,000 head -- 2,000 head more than a week ago and 30,000 head more than a year ago. The CME lean hog index 3/6/2025: down $0.28, $89.90.
TUESDAY'S HOG CALL: Steady. Packers may remain steady in Tuesday's cash market until they see what the week's demand is going to amount to.
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