The livestock complex is enjoying a strong start to the week as all three of the markets are trading higher into Monday's noon hour. Fundamental demand will be crucial for the market again this week if higher tones are to remain. May corn is up 2 3/4 cents per bushel and May soybean meal is down $0.90. The Dow Jones Industrial Average is down 532.37 points.
LIVE CATTLE:It's exciting to see not only the live cattle contracts trading higher at Monday's start again, but to see boxed beef prices higher at the beginning of the week. Traders were elated to see cash cattle prices venture somewhat higher last week, which is what really pushed the futures complex to jolt higher last Friday. And as long as fundamental support can remain plentiful in the market again this week -- continuing to trade higher shouldn't be an issue for the live cattle complex. April live cattle are up $0.30 at $200.57, June live cattle are up $0.72 at $197.20 and August live cattle are up $0.55 at $194.90. If boxed beef prices show good interest all week, there's a chance that packers could be active in this week's market again. However, if demand is soft and prices fall flat, then packers won't likely show much interest in the cash market.
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 are higher: choice up $1.42 ($316.32) and select up $1.20 ($307.00) with a movement of 49 loads (35.52 loads of choice, 3.64 loads of select, 6.27 loads of trim and 3.95 loads of ground beef).
FEEDER CATTLE:Continuing to mirror the live cattle market's trend, the feeder cattle contracts are also trading higher heading into Monday's noon hour. It will be interesting to see how traders handle the feeder cattle complex this week as the market is nearing resistance levels. If fundamental support is adequate on the live cattle market side of things (meaning boxed beef demand and strong fed cash cattle sales) then there's a chance that the market inches higher and pressures all time high price points, but without certainty from the live cattle complex, the market will face some headwinds.
LEAN HOGS:Thankfully, the market's stronger close last week has added a little technical support early this week, which is allowing the lean hog contracts to enjoy stronger prices ahead of Monday's noon hour. And helping the market's cause as well is the fact that midday pork cutout values are up $1.81, and the carcass price is being driven evenly from the cuts. April lean hogs are up $0.30 at $87.62, June lean hogs are up $0.32 at $98.42 and July lean hogs are up $0.50 at $99.75.
The projected lean hog index for 3/7/2025 is down $0.21 at $89.71, and the actual index for 3/6/2025 is down $0.28 at $89.90. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.70 with a weighted average price of $87.99, ranging from $86.00 to $89.00 on 1,282 head and a five-day rolling average of $88.74. Pork cutouts total 152.24 loads with 139.78 loads of pork cuts and 12.46 loads of trim. Pork cutout values: up $1.81, $100.17.
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