GENERAL COMMENTS:
The livestock complex charged through Friday's end as the market capitalized on the strength it had before heading into the weekend. Southern live cattle traded at $186 which is $1.00 higher than last week's weighted average, and Northern dressed cattle traded for $298 which is $4.00 higher than last week's weighted average. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.24 with a weighted average price of $79.94 on 3,035 head. May corn is up 3 cents per bushel and May soybean meal is down $2.70. The Dow Jones Industrial Average is down 190.10 points.
From Friday to Friday livestock futures scored the following changes: April live cattle down $0.35, June live cattle up $0.17; March feeder cattle up $0.08, April feeder cattle down $1.97; April lean hogs up $2.55, June lean hogs up $0.65; May corn down $0.03, July corn own $0.03.
LIVE CATTLE:
With the cash cattle market trading higher and the market now eased away from current resistance thanks to Thursday's plunge, the live cattle complex didn't struggle at all to close higher by Friday's end. April live cattle closed $0.30 higher at $187.25, June live cattle closed $0.22 higher at $183.60 and August live cattle closed $0.52 higher at $182.62. The cash cattle market saw trade develop early Friday morning in the South at $186 which is $1.00 higher than last week's weighted average. And some more trade developed in the North at $298, which is $4.00 higher than last week's weighted average. It's impressive that feedlots were able to move the cash market higher again this past week, but at some point, these higher carcass weights and reduced processing speeds are going to catch up to feedlot's showlists if feedlot managers aren't careful.
Friday's slaughter is estimated at 113,000 head -- 16,000 head more than a week ago and steady with a year ago. Saturday's slaughter is projected to be around 15,000 head. The week's total estimated slaughter amounts to 601,000 head -- 18,000 head more than a week ago but 27,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.12 ($311.90) and select up $0.71 ($302.40) with a movement of 88 loads (69.55 loads of choice, 10.54 loads of select, zero loads of trim and 7.95 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. It's a coin toss on trying to determine whether or not cash prices will advance next week or hold steady. On one hand with boxed beef prices continuing to trade higher, packers may need more cattle to supply the demand. On the other hand, cash prices could trade lower as carcass weights are increasing, and packers have dramatically cut throughput.
FEEDER CATTLE:
Following Thursday's sharp decline, the feeder cattle complex was able to regain some of what the market had lost ahead of the week's end. Thankfully with both the live cattle and cash cattle markets trading higher, and the continued support of buyers in the countryside -- the feeder cattle market saw steady gains through Friday's end. March feeders closed $1.80 higher at $249.27, April feeders closed $0.95 higher at $252.12 and May feeders closed $1.17 higher at $256.00. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week and throughout the entire state, feeder steers sold steady, but feeder heifers traded steady to $5.00 higher with instances of $10.00 higher on six weights. Steer calves sold $5.00 to $10.00 higher and heifer calves traded $2.00 to $8.00 higher, but four weights held mostly steady. Slaughter cows traded $1.00 to $5.00 higher and slaughter bulls sold $2.00 to $3.00 higher. Feeder cattle supply over 600 pounds was 64%. The CME feeder cattle index 3/14/2024: $0.54, $249.00.
LEAN HOGS:
The lean hog complex was able to round the week out on a stronger foot as the market saw trader interest pour into the complex ahead of Friday's close. April lean hogs closed $1.90 higher at $86.92, June lean hogs closed $1.05 higher at $102.47 and July lean hogs closed $1.00 higher at $104.50. With the spot April contract closing at $86.92, the market is once again closing in on resistance, which traders will be pressured next week to either take out resistance or continue to trade sideways. Pork cutouts totaled 303.72 loads with 280.29 loads of pork cuts and 23.43 loads of trim. Pork cutout values: up $0.22, $93.47. It was interesting to note the carcass price's biggest support stemmed from the butt which gained $4.11, and the loin also gained $1.92. Friday's slaughter is estimated at 444,000 head -- 2,000 head more than a week ago and 21,000 head less than a year ago. Saturday's slaughter is projected to be around 129,000 head. The CME lean hog index 3/13/2024: up $0.17, $82.19.
MONDAY'S HOG CALL: Steady. Packers seem in short supply of hogs, so cash prices could be higher or potentially even steady early next week.
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