GENERAL COMMENTS:
It was a lackadaisical day for the livestock complex as traders only paid the market minimal attention. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.79 with a weighted average price of $72.70 on 5,422 head. May corn is up 2 cents per bushel and May soybean meal is down $3.70. The Dow Jones Industrial Average is down 96.82 points.
LIVE CATTLE:
The live cattle complex wasn't able to round out the day on a stronger note -- but the day's biggest takeaway was that choice cuts endured a little pressure. It's been invigorating for the market to see beef demand push choice cuts above $300.00 (which hasn't been a price point achieved since last October), but now that choice cuts have closed slightly lower -- market participants will be carefully watching to see what trend develops later throughout the week. Still no cash cattle trade has developed, but asking prices are noted in the South at $185 to $186, while the North's asking prices remain unestablished. Trade isn't expected to develop until Thursday or Friday and prices are expected to hold at least steady. April live cattle closed $0.37 lower at $187.72, June live cattle closed $0.52 lower at $183.57 and August live cattle closed $0.52 lower at $182.67.
Tuesday's slaughter is estimated at 125,000 head -- steady with a week ago and 1,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.05 ($301.74) and select up $2.41 ($290.40) with a total movement of 100 loads (59.29 loads of choice, 14.38 loads of select, 13.26 loads of trim and 12.92 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. It's unlikely that trade will develop as early as Wednesday, but when trade does develop, feedlots are expected to price cattle higher while packers try to keep prices no better than steady following last week's $3.00 to $4.00 advancement.
FEEDER CATTLE:
The feeder cattle complex was able to close mixed even though corn prices closed slightly higher and even though the live cattle complex didn't lend much support. Feeder cattle sales and buyer demand continue to remain extremely strong in the countryside which is helping the market maintain its confidence. March feeders closed $0.05 lower at $253.00, April feeders closed $0.05 higher at $258.95 and May feeders closed $0.25 lower at $261.32. At Sioux Falls Regional Cattle Auction in Worthing, South Dakota compared to last week steers weighing 500 to 550 pounds sold $4.00 higher, steers weighing 600 to 650 pounds traded $2.00 to $4.00 lower and steers weighing 700 to 750 pounds traded $6.00 higher. A large offering of steers weighing 800 to 850 pounds sold $5.00 to $10.00 higher. Heifers weighing 450 to 500 pounds sold $4.00 to $8.00 stronger, and heifers weighing 550 to 700 pounds sold $2.00 to $5.00 lower. Feeder cattle supply over 600 pounds was 83%. The CME feeder cattle index 2/26/2024: down $0.18, $246.46.
LEAN HOGS:
The lean hog complex closed mixed as the market's nearby contracts closed lower while the deferred contracts closed slightly higher. Thankfully pork cutout values ended stronger as both the loin (up $3.47) and the rib (up $4.61) saw substantial gains. The added support of stronger pork cutout values and slightly better cash interest could lend Wednesday's market more strength. April lean hogs closed $0.37 lower at $85.90, June lean hogs closed $0.52 lower at $99.32 and July lean hogs closed $0.10 lower at $100.45. Pork cutouts totaled 319.53 loads with 271.53 loads and 48.00 loads of trim. Pork cutout values: up $0.88, $91.87. Tuesday's slaughter is estimated at 491,000 head -- 1,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index 2/23/2024: up $0.36, $79.46.
WEDNEDSAY'S HOG CALL: Steady. Given that cash prices closed stronger today, prices could be steady on Wednesday as packers may still need to buy some more hogs but won't likely do so to the degree in which cash prices turn much higher.
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