Wednesday's WASDE report was encouraging, but the market didn't seem to care. The futures contracts closed lower all throughout the livestock complex and the cash cattle market sold cattle for as much as $4.00 lower compared to last week. Hog prices closed slightly lower on the Daily Direct Afternoon Hog Report, down $0.49 with a weighted average of $103.47 on 5,805 head. May corn is down 20 cents per bushel and May soybean meal is up $1.40. The Dow Jones Industrial Average is up 653.61 points and NASDAQ is up 460.00 points.
LIVE CATTLE:Wednesday's WASDE report tried to help the cash cattle market remain optimistic by highlighting the fact that supplies are going to get thin and, with processing speeds running this aggressively, that prices should get stronger in the cash market. But packers did what packers do -- they pushed the market lower. There was another round of dressed cattle that traded in the North at mostly $220, which is $4.00 lower than last week's average. A few more cattle traded in the South for $138, which is steady with the week's trend but $2.00 lower than last week. The futures market lent the cash market no support as it closed lower yet again. April live cattle closed $1.47 lower at $137.57, June live cattle closed $1.50 lower at $133.95 and August live cattle closed $0.85 lower at $135.62.
Wednesday's slaughter is estimated at 125,000 head -- 2,000 head more than a week ago and 4,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.26 ($252.70) and select down $0.15 ($244.79) with a choice/select spread of $7.91 and a movement of 168 loads (94.37 loads of choice, 26.46 loads of select, 6.27 loads of trim and 41.30 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady. Given that cattle have traded in both regions, they'll continue to trade steady with the week's trend.
FEEDER CATTLE:Feeder cattle futures closed mostly lower as the market simply lacks direction and support. Yes, the corn complex trended lower, but unless the feeder cattle market has traders who are willing to invest in its contracts, the market can't rally. Not to mention, the live cattle complex traded lower on the futures market and isn't having a strong week in the cash market, which adds pressure for feeders who are looking to capitalize on the live cattle market later down the road. March feeders closed $0.02 higher at $154.05, April feeders closed $0.17 lower at $160.15 and May feeders closed $0.37 lower at $165.92. At Huss Livestock Market in Kearney, Nebraska, compared to last week on a run of 1,985 head, steers weighing 600 to 750 pounds sold $2.00 to $4.00 higher and steers over 750 pounds sold steady to $4.00 lower. Heifers sold $2.00 to $10.00 lower. The CME Feeder Cattle Index 3/8/2022: down $1.26, $154.11.
LEAN HOGS:Pork cutouts closed higher, Wednesday's slaughter was extremely aggressive, the cash market traded a sizeable volume, but the futures market veered lower. The futures market is struggling throughout the lean hog complex as traders are somewhat willing to chop the complex sideways, and they'll even flirt with the idea of trading the contracts higher. But the instant they do, they grow concerned about where they're to go next. And honestly, that's how most of the livestock contracts are trading. After the plumet that the contracts took over the last two weeks, there's plenty of upside to be had. But until the war dust settles it's hard to trade positively/confidently. April lean hogs closed $1.77 lower at $101.15, June lean hogs closed $0.82 lower at $107.40 and July lean hogs closed $0.77 lower at $113.05. Wednesday's WASDE report was friendly to the hog complex in terms of quarterly price projections. The first quarter barrows and gilt price projection gained $3.00 to average $66.00; the second quarter gained $8.00 to average $78.00; the third quarter gained $8.00 to average $75.00; and the fourth quarter gained $5.00 to average $65.00. Pork cutouts total 239.74 loads with 216.73 loads of pork cuts and 23.02 loads of trim. Pork cutout values: up $2.34, $107.74. Wednesday's slaughter is estimated at 482,000 head -- 1,000 head more than a week ago and 9,000 head less than a year ago. The CME Lean Hog Index 3/7/2022: down $0.28, $99.00. It will be interesting to see if China is a buyer again in Thursday's export report as grain prices have gotten high in China and it's hurting their hog population's ability to grow.
THURSDAY'S CASH HOG CALL: Lower. Seeing that prices swayed lower in Wednesday's trade and that packers were aggressive in the market earlier in the week, means it's likely both Thursday's and Friday's cash trade is lower.
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