GENERAL COMMENTS:
The livestock complex continues to be a slow trading, quiet space as cattle fans try to patiently wait for trade to develop, and hog enthusiasts are praying that their market will find support and be able to trade higher into the afternoon. Still no cash cattle trade, but trade could begin to develop as early as this afternoon. May corn is down 3 3/4 cents per bushel and May soybean meal is up $3.00. The Dow Jones Industrial Average is up 139.28 points.
LIVE CATTLE:
The live cattle complex is sour over Thursday morning's export report as everyone was hopeful sales would be similar to last week, as opposed to a scant 8,100 metric tons (mt). And while traders try to remain patient in waiting for this week's cash cattle trade to develop, the long-drawn-out wait seems to be taking its toll on traders and the contracts are trading lower into Thursday's afternoon. April live cattle are down $0.62 at $164.50, June live cattle are down $0.52 at $160.07 and August live cattle are down $0.37 at $159.30. No bids are currently being offered but as time ticks by, packer interest should grow stronger. Asking prices remain firm at $166-plus in the South and are still not established in the North.
Beef net sales of 8,100 mt for 2023 were down 48% from the previous week and 62% from the prior four-week average. The three largest buyers were Japan (2,600 mt), Taiwan (2,300 mt) and China (1,500 mt).
Boxed beef prices are higher: choice up $1.07 ($288.90) and select up $0.21 ($276.64) with a movement of 41 loads (25.01 loads of choice, 5.32 loads of select, zero loads of trim and 10.77 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are rejoicing as corn prices are again trading lower, which has given feeders the green light to trade higher. The cash cattle market still hasn't seen cattle trade, but when trade does begin to develop, prices are expected to be higher, which will also bode well for the feeder cattle contracts. Even with the slight stability found Wednesday afternoon in the corn complex, feeder cattle demand remained incredibly strong in sale barns as buyers know that the closer we get to spring, the higher prices are going to get. March feeders are up $0.52 at $188.82, April feeders are up $0.25 at $194.10 and May feeders are up $0.20 at $199.20.
LEAN HOGS:
Despite receiving a moderately supportive export report and seeing both cash prices higher Wednesday afternoon, along with pork cutout values, the lean hog complex continues to struggle through Thursday's market. April lean hogs are down $0.65 at $84.30, June lean hogs are up $0.05 at $100.90 and July lean hogs are up $0.05 at $103.12. If pork cutout values find support again this afternoon, then the market could potentially stand a chance at trading higher as some nearby contracts are flirting with the idea. But until traders see consistent support, they're likely to remain hesitant.
The projected CME Lean Hog Index for 3/1/2023 is up $0.07 at $78.65, and the actual index for 2/28/2023 is up $0.07 at $78.58. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.56 with a weighted average of $78.07, ranging from $74.00 to $79.00 on 5,371 head and a five-day rolling average of $78.04. Pork cutouts total 158.00 loads with 129.06 loads of pork cuts and 28.94 loads of trim. Pork cutout values: up $0.02, $85.56.
Pork net sales of 31,000 mt for 2023 were down 40% from the previous week and 21% from the prior four-week average. The three largest buyers Mexico (13,400 mt), South Korea (4,500 mt) and Japan (4,300 mt).
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