GENERAL COMMENTS:
The livestock complex is again trading mixed as the cattle contracts have found support in Wednesday's market while the lean hog complex continues to drift lower. No cash cattle business has developed at this point, and it's likely that the week's trade is delayed until Thursday or later. May corn is up 2 cents per bushel and May soybean meal is down $6.70. The Dow Jones Industrial Average is up 22.42 points.
LIVE CATTLE:
It took some convincing of the deferred contracts but as the live cattle market nears the noon hour, the entire marketplace is now trading higher. Traders continue to keep the market trading mostly steady as they painfully wait to see what this week's cash cattle market accomplishes. Asking prices in the South are noted at $170 and feedlots are assumed to price cattle around $272-plus in the North. Regardless, with the market's strong fundamental footing and continued support of higher boxed beef prices, feedlots stand an excellent chance at see higher prices yet again this week. April live cattle are up $0.80 at $168.40, June live cattle are up $0.42 at $160.65 and August live cattle are up $0.55 at $160.32.
The Fed Cattle Exchange Auction held today reported 7 lots (all 7 lots were in Texas), totaling 892 head of cattle. Opening prices were at $166, high bids were at $166 to $167.50, but none of these met reserve prices of $169 to $170.
Boxed beef prices are higher: choice up $1.18 ($289.12) and select up $0.77 ($278.72) with a movement of 71 loads (52.77 loads of choice, 8.41 loads of select, zero loads of trim and 9.66 loads of ground beef).
FEEDER CATTLE:
After closing lower earlier in the week, the feeder cattle contracts are finally back to trading higher as the market simply couldn't pass up the opportunity to trade higher while corn prices remain mostly steady. There's a wide consensus that the cash cattle market will trade higher again this week, and if it does, the feeder cattle market will likely gain some spillover support from the cash cattle and live cattle markets. Demand continues to be phenomenal out in the countryside as moisture continues to accumulate and buyers know that higher prices may be ahead. April feeders are up $0.45 at $198.40, May feeders are up $0.70 at $202.97 and August feeders are up $0.55 at $220.05.
LEAN HOGS:
Sadly, the lean hog complex is once again trailing lower into the day's noon hour as finding technical or fundamental support seems nearly impossible. Cash prices are lower at noon and pork cutout values are also lower, which gives traders little ammunition to work in when laying out a case for higher prices. What really matters is how the day's afternoon pork cutout report closes, which could unveil anything at this point. June lean hogs are down $1.10 at $88.47, July lean hogs are down $1.50 at $91.25 and August lean hogs are down $1.45 at $92.20.
The projected lean hog index for April 4 is down $0.76 at $73.91, and the actual index for April 3 is down $0.52 at $74.67. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.76 with a weighed average of $71.25, ranging from $71.00 to $74.00 on 3,685 head and five-day rolling average of $72.32. Pork cutouts total 176.98 loads with 156.87 loads of pork cuts and 20.12 loads of trim. Pork cutout values: up $0.96, $77.81.
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