GENERAL COMMENTS:
It was a much better day for the livestock complex as all three markets were able to close higher. A few more sales were noted in the South from $195 to $197, but no consensus has been determined as to what the week's weighted average price is going to be. May corn is up 4 1/4 cents per bushel and May soybean meal is up $6.30. The Dow Jones Industrial Average is up 485.60 points.
LIVE CATTLE:
The live cattle complex again rallied throughout the day and seemed rather unscathed by the trade chaos that's negatively inflicted the vast majority of the commodity markets. In fact, today's rally is the highest the April live cattle contract has traded since Feb. 14. As of today's close, the spot contract is just a little over a dollar away from again trading alongside its 40-day moving average. April live cattle closed $1.90 higher at $196.55, June live cattle closed $2.62 higher at $192.70 and August live cattle closed $2.80 higher at $191.27. The cash cattle market was again quiet throughout the day with no major trade surfacing. Throughout the week there have been drabs of live cattle traded in Kansas at $195, which is $2.00 lower than last week's weighted average. However, the market doesn't seem committed to believing that any sort of a trend has been established just yet. Asking prices are noted in the South at $198 plus and are still not established in the North. Wednesday's slaughter is estimated at 120,000 head -- 2,000 head less than a week ago and 3,000 head less than a year ago.
THURSDAY'S CATTLE CALL: Steady to $1.00 lower. Feedlot managers will likely try to use the momentum of the board as a reason why cash cattle prices should trade higher, but packers will still be difficult to negotiate with as their margins remain red.
FEEDER CATTLE:
At first, the feeder cattle complex was trading lower, but as the day traded onward, the feeder cattle complex slowly began to adapt to the supportive nature of the live cattle complex and rounded out the day sharply higher. March feeders closed $2.25 higher at $276.10, April feeders closed $3.57 higher at $276.07 and May feeders closed $4.07 higher at $275.07. With the recent advancement of the futures complex, the spot March contract is within $2.00 of the high obtained late in January. At Ozarks Regional Stockyards in West Plains, Missouri, compared to last week, feeder steers and heifers sold steady to $4.00 higher. Steer and heifer calves sold unevenly steady from $3.00 lower to $3.00 higher. Feeder cattle supply over 600 pounds was 51%. The CME feeder cattle index 3/4/2025: up $0.88, $277.87.
LEAN HOGS:
Following the sharp decline the lean hog complex endured throughout Tuesday's trade, it was relieving to see that the hog contracts didn't trade in the same manner throughout Wednesday's trade. The entire complex was able to close higher. April lean hogs closed $2.35 higher at $84.70, June lean hogs closed $1.42 higher at $94.57 and July lean hogs closed $0.80 higher at $96.32. On Thursday, President Trump and Mexico's President, Claudia Sheinbaum Pardo are supposed to talk trade. Hopefully, favorable terms for the hog industry are met, as the U.S. desperately depends on the ability to market pork into Mexico. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.07 with a weighted average price of $90.28 on 6,237 head. Pork cutouts totaled 237.90 loads with 212.22 loads of pork cuts and 25.68 loads of trim. Pork cutout values: down $1.29, $96.48. Wednesday's slaughter is estimated at 409,000 head -- 81,000 head less than a week ago and 75,000 head less than a year ago. The CME lean hog index 3/3/2025: up $0.28, $90.22.
THURSDAY'S HOG CALL: Steady to somewhat lower. Following today's trade is likely that packers have secured the vast majority of their needs for the week.
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