GENERAL COMMENTS:
The livestock complex is met with modest support through Tuesday's market and all the contracts are happy to trade higher regardless of how much the price jump amounts to. Just because the contracts are trading higher doesn't mean all the world's volatility has worked its way out of the market. May corn is down 19 1/2 cents per bushel and May soybean meal is up $12.30. The Dow Jones Industrial Average is up 462.44 points and NASDAQ is up 224.72 points.
LIVE CATTLE:
The live cattle contracts aren't confident in any ounce of Tuesday's trade and have jumped higher and then lower multiple times already. April live cattle are up $1.30 at $139.10, June live cattle are up $0.52 at $134.45 and August live cattle are down $0.02 at $135.22. With boxed beef prices lower on Tuesday's midday report, it doesn't appear the bottom of the boxed beef market has been found -- though we know it's coming. You'd hope slightly higher futures trade would give feedlots some confidence in this week's cash cattle market. But given the destructive blows of last week, it's unlikely feedlots see much interest and any bids that do come their way will likely be lower. Thus far the market hasn't seen any cash cattle bids develop, and it's likely nothing really trades until Wednesday or later. Asking prices of $140 have been noted in the South, but the North has yet to disclose their asking price.
Boxed beef prices are lower: choice down $1.51 ($253.20) and select down $3.23 ($246.99) with a choice/select spread of $6.21 at a movement of 87 loads (43.37 loads of choice, 22.71 loads of select, 7.30 loads of trim and 13.22 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts have set out to regain some leverage and with the corn market regressing (corn is trending 14- to 19-cents lower in its nearby contracts) the market feels as though it's been given the green light to trade higher for the time being. March feeders are down $0.20 at $154.40, April feeders are up $1.50 at $161.17 and May feeders are up $0.62 at $165.52. While the day is celebrating moderate support throughout the futures complex, it's important to keep a sober perspective of the markets amid war. Take Monday's gains, take Tuesday's gains but know that as war continues to wreak havoc in Ukraine, volatility still lingers throughout the market.
LEAN HOGS:
The lean hog complex is jumping to Tuesday's arrival and trending higher in the nearby contracts after a lousy day of trade Monday. April lean hogs are up $1.30 at $101.57, June lean hogs are up $1.62 at $112.62 and July lean hogs are up $1.65 at $111.50. It could be another day of aggressive cash hog trade as packers have already committed to 3,384 head with a top bid of $108.50. Helping fuel packer aggression in the cash market is undeniably the uptick in pork cutout prices. Monday's afternoon pork cutout values closed $2.66 higher, Tuesday's midday prices are up $4.59 and so if Tuesday's afternoon data can show the same type of interest, the market can find comfort in consumers' support.
The projected CME Lean Hog Index for 3/7/2022 is down $0.28 at $99.00 and the actual index for 3/4/2022 is down $0.29 at $99.28. Hog prices average $93.92, ranging from $92.00 to $108.50 on 3,384 head and a five-day rolling average of $93.30. Pork cutouts total 165.98 loads with 154.38 loads of pork cuts and 11.60 loads of trim. Pork cutout values: up $4.59, $111.24.
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