GENERAL COMMENTS
It was another day of bloodbath for the livestock complex as the market couldn't gain any footing in the fear, anxious ridden environment that's taken hold of the livestock complex. On Thursday, the markets will be looking for the day's export data and for more cash cattle trade to develop. Hog prices closed higher on the Daily Direct Afternoon hog report, up $1.09 with a weighted average of $79.2 on 16,370 hogs. May corn closed up 5 3/4 at $6.265 and May soybean meal closed down $2.80 at $478.4. The Dow Jones Industrial Average is down 280.83 at 31,874.57.
LIVE CATTLE:
The live cattle contracts did close lower Wednesday, but compared to their other livestock market counterparts, they endured Wednesday's "dumpster fire" feeling better than the rest. It's beyond frustrating to see the market's fundamentals as strong as they are and to know that the weakness is all imposed by outside economic pressure of uncertainty. But it's on days like Wednesday when we must remember that markets are people, and people rarely act rationally. Fear is a crippling disease and it's amazing how quickly it can spread.
It didn't help the live cattle market's fate that the cash cattle complex caved and began to trade some cattle for cheaper money either. A light movement was reported in the South at $164, which is $1.00 lower than last week's weighted average, and some Northern dressed cattle trade was reported at $264, which is $0.50 to $1.00 lower than last week's weighted average. April live cattle closed $1.50 lower at $161.55, June live cattle closed $1.18 lower at $156.575 and August live cattle closed $1.23 lower at $156.35.
Wednesday's slaughter is estimated at 126,000 head, steady with a week ago and 3,000 head more than a year ago.
Boxed beef prices closed mixed: choice down $1.64 ($284.27) and select down $1.93 ($272.63) with a movement of 111.03 loads (67.84 loads of choice, 12.78 loads of select, 10.62 loads of trim and 19.79 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that prices have been tested in both regions, it's likely that trade remains steady with the week's trend at this point.
FEEDER CATTLE:
It was another day of lower trending contracts for the feeder cattle market as traders had merely no option but to send the market lower with the immense outside pressure weakening the livestock complex. It didn't help matters that the nearby corn contracts traded slightly higher, and that cash cattle trade began at $1.00 lower than last week's weighted average. March feeders closed $1.73 lower at $188.2, April feeders closed $2.50 lower at $193.25 and May feeders closed $2.50 lower at $198.8. At Sioux Falls Regional Cattle Auction in Worthing, South Dakota, compared to last week, feeder steers trade steady to $3.00 lower but there were instances of $12.00 lower expect on those weighing 900 to 950 pounds as they sold $1.00 to $3.00 higher. Feeder heifers traded steady to $3.00 higher, except those weighing 500 to 550 pounds, which traded $1.00 to $4.00 lower. Market reports speculate that heifers are likely to increase at a faster rate than their steer counterparts, simply because more producers are searching for heifers. Feeder cattle supply over 600 pounds was 85%. The CME Feeder Cattle Index for March 13: down $0.12, $189.39.
LEAN HOGS:
It was a painstaking day for the lean hog market as the contracts plummeted $1.00 to $3.00 lower as traders felt immense pressure and found little support in the market's fundamentals to help stabilize the market. Unfortunately, the spot April contract is now at the point of pressuring support levels, which could send the contract even lower. Yes, cash hog prices did trade higher, but that wasn't enough support to lessen the stress of the futures weakness. April lean hogs closed $1.65 lower at $83.75, June lean hogs closed $3.35 lower at $98.225 and July lean hogs closed $3.10 lower at $100.85. Wednesday's hog slaughter is estimated at 479,000 head, 2,000 head less than a week ago and 2,000 head more than a year ago. Pork Cutouts totaled 244.35 loads with 218.20 loads of pork cuts and 26.15 loads of trim. Pork cutout values are down $1.99 at $86.38. The CME Lean Hog Index for March 13: up $0.03, $79.89.
THURSDAY'S HOG CALL: Lower. Given that hog prices have been higher for two straight days, it's likely that Thursday's market is lower as packers have most likely secured all their needs for the week.
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