GENERAL COMMENTS:
The cattle complex had another victorious day, as both the live cattle and feeder cattle contracts closed higher as traders were pleased with the note of stronger choice cuts and believe the cash cattle market will trade higher later this week. Meanwhile, the lean hog complex closed lower as technical pressure remains bothersome. May corn is up 3 1/4 cents per bushel, and May soybean meal is down $2.20. The Dow Jones Industrial Average is up 383.32 points.
LIVE CATTLE:
What a day, what a day! Whether you look at the board's stronger performance or at the continued support of boxed beef prices, the live cattle complex successfully rounded out the day higher thanks to ample support. The only soft spot in the market was Wednesday's estimated slaughter of only 96,000 head. But with a handful of plants closed in Nebraska because of freezing rain/snow and hellacious winds, there's nothing anyone can do but weather the storm. However, the slight dip in processing will likely have an effect on boxed beef prices, as supplies are relatively thin already. It will be interesting to note, however, whether packers elect to run an extra shift later this week to make up for the loss in production or just simply choose to go without -- time will tell. Still no cash cattle trade developed throughout the day, as feedlot managers are committed to waiting the week out to see what prices can do later this week. Asking prices are noted in the South at $207-plus but are still not established in the North. April live cattle closed $1.45 higher at $206.82, June live cattle closed $1.85 higher at $202.85, and August live cattle closed $1.37 higher at $200.07.
Wednesday's slaughter is estimated at 96,000 head -- 27,000 head less than a week ago and 19,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $6.29 ($329.61) and select down $0.55 ($308.68) with a movement of 110 loads (71.62 loads of choice, 13.69 loads of select, 4.92 loads of trim and 19.73 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to somewhat higher. Feedlot managers are committed to advancing the market again this week, as they see an opportunity to push the market higher.
FEEDER CATTLE:
The feeder cattle complex again ran higher as the market continues to be well supported from the live cattle market's higher trend and from excellent demand in the countryside. Buyers know that the closer time gets to cookout season, feeder cattle are only going to get more and more expensive so long as enough adequate moisture hits this spring. March feeders closed $1.85 higher at $286.82, April feeders closed $2.17 higher at $286.72 and May feeders closed $2.25 higher at $287.50. At Torrington Livestock Auction in Torrington, Wyoming, compared to last week, steers and heifers traded $3 to $5 higher with instances up to $15 higher on cattle suitable for grass. Feeder cattle supply over 600 pounds was 53%. The CME feeder cattle index 3/18/2025: up $0.54, $284.65.
LEAN HOGS:
The lean hog complex again closed lower, as the market seems to be struggling from a technical sense as traders aren't willing to take on the resistance at $88. It hasn't helped matters either that pork cutout values have been unreliable, as the carcass price has recently danced along both sides of steady. But on Wednesday, the carcass price closed lower thanks mainly to the pressure that was endured by the rib's $6.52 decline. April lean hogs closed $2.02 lower at $85.57, June lean hogs closed $0.85 lower at $96.50, and July lean hogs closed $0.70 lower at $97.77. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.74 with a weighted average price of $91.02 on 10,119 head. Pork cutouts totaled 296.16 loads with 253.52 loads of pork cuts and 42.64 loads of trim. Pork cutout values: down $0.45, $95.19. Wednesday's slaughter is estimated at 377,000 head -- 112,000 head less than a week ago and 111,000 head less than a year ago. The CME lean hog index 3/17/2025: up $0.04, $89.32.
THURSDAY'S HOG CALL: Lower. Given that on both of the last two days the cash hog market has traded higher and seen more than 10,000 head trade each day likely means that packers have secured enough inventory and that prices will be lower throughout the remainder of the week.
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