GENERAL COMMENTS:
Thursday has been a jolting day for cattle futures as Wednesday's encouraging Cattle Inventory report sent both the live cattle and feeder cattle markets higher. Still no cash cattle trade and, unless packers offer up some better bids, trade could delayed until Friday. March corn is down 2 3/4 cents per bushel and March soybean meal is down $7.80. The Dow Jones Industrial Average is up 194.04 points.
Thursday's export sales report shared that beef net sales of 16,700 metric tons (mt) for 2024 were primarily for Japan (5,200 mt), China (3,300 mt) and Mexico (2,500 mt). Pork net sales of 42,900 mt for 2024 were primarily for Mexico (13,400 mt), China (12,600 mt) and Canada (4,200 mt).
LIVE CATTLE:
Just like the feeder cattle complex, the live cattle market was elated to see the positive, supportive nature of Wednesday's Cattle Inventory report and has traded higher all throughout Thursday. The excitement of Wednesday's report encouraged feedlots to be bolder and to price their cattle higher; even though packers are offering up bids in both regions -- feedlot managers aren't satisfied with the prices just yet. Bids of $176 are being offered in the South and bids of $276 to $278 in the North, but with asking prices firm at $178 in the South and $280 plus in the North -- the trade battle continues. February live cattle are up $1.55 at $178.90, April live cattle are up $1.17 at $181.87 and June live cattle are up $1.20 at $180.10.
Boxed beef prices are lower: choice down $0.61 ($293.93) and select down $0.02 ($284.15) with a movement of 50 loads (31.37 loads of choice, 4.62 loads of select, zero loads of trim and 14.22 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is charging $2.00 to $3.00 higher in nearby contracts as traders are loving the news shared by Wednesday's Cattle Inventory report. The report had a plethora of supportive figures, but the fact that all calves under 500 pounds came in at 13.28 million head is extremely supportive as that's 3% less than a year ago and demand since then has only increased for calves and feeders alike. March feeders are up $3.70 at $243.85, April feeders are up $3.32 at $249.47 and May feeders are up $2.85 at $254.65.
LEAN HOGS:
The lean hog contracts have been in retreat mode thus far Thursday. Some of the deferred contracts are still trading mildly higher, but after surging to the highest prices seen in the last four months, traders are seeming to ease off acceleration mode in the hog complex. February lean hogs are down $0.40 at $75.95, April lean hogs are down $1.72 at $83.10 and June lean hogs are down $1.30 at $96.60.
The projected CME Lean Hog Index is again delayed from the source. Hog prices are unavailable on the Daily Direct Morning Hog Report due to packer submission issues. Pork cutouts total 156.28 loads with 124.73 loads of pork cuts and 31.55 loads of trim. Pork cutout values: up $1.23, $88.79.
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