GENERAL COMMENTS:
It was a typical Monday for the livestock complex where the market saw little attention from traders. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.02 with a weighted average price of $76.16 on 1,140 head. May corn is up 2 cents per bushel and May soybean meal is down $4.20. The Dow Jones Industrial Average is up 24.79 points.
LIVE CATTLE:
It was another slow day for the live cattle complex as traders vaguely traded the market but seemed held back as they waited to see how demand shaped up this week -- from consumers in the form of boxed beef prices and demand from packers in the cash market.
Packers are likely to be less aggressive in this week's cash market given that last week's market advanced anywhere from $2 to $4 higher and processing speeds have already been cut again this week. Not to mention, packers were able to buy just shy of 25,000 head of cattle with time.
April live cattle closed steady at $187.60, June live cattle closed $0.40 lower at $183.02 and August live cattle closed $0.20 lower at $182.05. New showlists appear to be mixed, higher in Nebraska/Colorado but lower in Kansas and Texas. Monday's slaughter is estimated at 111,000 head -- 5,000 head less than a week ago and 10,000 head less than a year ago.
Last week, Northern dressed cattle sold for $290 to $300, but mostly at $292 to $294, which is $2 to $4 higher than the previous week. Southern live cattle waited until Friday, but trade ranged from $178 to $186, mostly at $185 which is $2 higher than the previous week's weighted that, 68% (51,969 head) were committed to the nearby delivery and the remaining 32% (24,395 head) were committed to the deferred delivery.
Boxed beef prices closed higher: Choice up $1.84 ($308.88) and select up $1.45 ($298.88) with a movement of 77 loads (45.70 loads of choice, 14.10 loads of select, 2.74 loads of trim and 14.38 loads of ground beef).
CATTLE CALL: Lower. Given that packers have already cut processing speeds and were able to get some cattle bought with time last week likely means the market's best chance this week is trading cattle for steady money.
FEEDER CATTLE:
It was a tough day for the feeder cattle contracts as the market reacted negatively to the lower close in the live cattle market and the strong close in corn. The spot April contract was pressured into closing $1 lower which threatens the market's bottom side in its current trading range. The feeder cattle market is torn between trading the market's strong fundamentals and the market's hesitant/skeptical futures complex -- and today the futures market's pressure weighted heavier.
March feeders closed $0.95 lower at $248.25, April feeders closed $1.00 lower at $253.10 and May feeders closed $1.37 lower at $255.37. At Oklahoma National Stockyards in Oklahoma City, at its midsession point and compared to last week, feeder steers were trading steady with instances of $5 higher on those over 900 pounds. Feeder heifers were selling mostly $3 to $8 higher. Stocker steers and steer calves were selling steady to $3 higher, and heifer calves were welling $2 to $5 higher. Demand was moderate to good for feeder cattle but still exceptionally strong for lighter weights and all cattle suitable for grass. The CME feeder cattle index March 8: Down $0.50, $248.24.
LEAN HOGS:
The lean hog complex closed with the same weak-hearted attitude that plagued the cattle complex, but thankfully pork cutout values were able to close higher. All the cuts saw mild gains from Friday's afternoon prices, pushing the overall carcass prices higher in today's closing.
In other news, however, Tyson Foods announced it will close its pork plant in Perry, Iowa, which employs 1,200 workers. April lean hogs closed $1.10 lower at $83.27, June lean hogs closed $0.77 lower at $101.05 and July lean hogs closed $0.62 lower at $103.07. Pork cutouts totaled 236.86 loads with 212.32 loads of pork cuts and 24.54 loads of trim. Pork cutout values: Up $1.40, $93.51. Monday's slaughter is estimated at 468,000 head -- 25,000 head less than a week ago and 14,000 head less than a year ago. The CME lean hog index March 7: steady, $81.48.
TUESDAY'S HOG CALL: Steady. Packers were fairly aggressive last week in the cash market. This could indicate they bought up, but with pork cutout values higher, they could pick up some more hogs, too.
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