It was a mixed, lackadaisical day for the livestock complex as the lean hog and live cattle markets closed lower, while the feeder cattle market maintained its higher position through today's close. More than anything the market's slight weakness stemmed from the equity market's turmoil today. May corn is down 1 3/4 cents per bushel and May soybean meal is down $0.50. The Dow Jones Industrial Average is down 478.23 points.
LIVE CATTLE:The live cattle complex was pulled slightly lower through Tuesday's close as traders were keenly aware of the equity market's uncertainty today. While it was positive to continue to see the support of higher choice cuts, traders not only want to see stronger beef demand this week but also hope to see the continuation of higher fed cattle prices, which would likely help them in advancing the contracts. It's still too early in the week for any cash cattle trade to have developed, but it's likely that if beef demand remains strong prices could trade steady to somewhat higher. Asking prices are noted in the South at $202 plus but are still not established in the North. Trade will likely be delayed until Thursday or Friday. April live cattle closed $1.02 lower at $199.55, June live cattle closed $0.97 lower at $196.25 and August live cattle closed $0.82 lower at $194.27. Tuesday's slaughter is estimated at 124,000 head -- 1,000 head more than a week ago and 3,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $3.62 ($321.20) and select down $0.09 ($306.86) with a movement of 146 loads (108.96 loads of choice, 16.99 loads of select, 7.56 loads of trim and 12.18 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady/somewhat higher. This week fed cash cattle prices could likely trade steady/somewhat higher, so long as beef demand remains supportive. If demand weakens, packers won't likely show much interest in the cash market.
FEEDER CATTLE:Although the live cattle contracts closed slightly lower, the feeder cattle complex maintained its higher position through Tuesday's end. What makes the feeder cattle market's position unique compared to the live cattle and lean hog contracts, is that it's currently trading at the resistance levels established late in January. If the market does indeed trade above the $278 resistance threshold, it's going to need to see full buy-in from the live cattle contracts, boxed beef prices and the fed cash cattle market to justify breaking into new levels not traded before. March feeders closed $0.45 higher at $277.50, April feeders closed $0.22 lower at $277.70 and May feeders closed $0.40 higher at $278.95. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week feeder steers traded $5.00 to $10.00 higher and feeder heifers traded $3.00 to $8.00 higher. Stocker steers and steer calves traded $5.00 to $15.00 higher, while stocker heifers and heifer calves traded steady. Feeder cattle supply over 600 pounds was 73%. The CME feeder cattle index 3/10/2025: up $2.59, $276.54.
LEAN HOGS:The lean hog complex had a mixed day as the futures contracts closed mixed, cash prices closed higher but afternoon pork cutout values were slightly lower. More than anything the market seemed insecure about the equity market's uncertainty and weak performance today. And again, this afternoon, the carcass price wasn't pulled lower because of a major drop in just one of the cuts' closes, but instead because the vast majority of the cuts closed slightly lower, which weighed heavily on the carcass price. April lean hogs closed $1.75 lower at $86.55, June lean hogs closed $0.45 lower at $98.37 and July lean hogs closed $0.55 lower at $99.50. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.08 with a weighted average price of $90.98 on 5,218 head. Pork cutouts totaled 362.95 loads with 312.58 loads of pork cuts and 50.37 loads of trim. Pork cutout values: down $0.64, $0.97.58. Tuesday's slaughter is estimated at 489,000 head -- 8,000 head more than a week ago and 7,000 head more than a year ago. The CME lean hog index 3/7/2025: down $0.19, $89.71.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Although packers were moderately aggressive in today's cash market, it's likely that they'll still need to secure more inventory.
No comments:
Post a Comment