Monday, March 18, 2024

Monday Midday Livestock Market Summary - Trader Interest Sends Contracts Higher

GENERAL COMMENTS:

The livestock complex is off to a strong start as all three of the markets trade higher into Monday's noon hour. New showlists appear to be mixed, higher in Texas, but lower in Kansas, and Nebraska/Colorado. May corn is up 1 cent per bushel and May soybean meal is down $0.20. The Dow Jones Industrial Average is up 142.71 points.

LIVE CATTLE:

The live cattle complex is trading higher as the week gets off to a positive start. It's once again supportive to see boxed beef prices higher, but packers aren't anticipated to increase processing speeds any time soon to slowly back up supplies so they don't have to continue paying more money in the cash market.

April live cattle are up $0.70 at $187.95, June live cattle are up $1 at $184.57 and August live cattle are up $0.97 at $183.60. The cash cattle market won't likely trade until late in the week, and steady prices could be the market's theme as packers have been able to steadily commit more and more cattle to the deferred delivery option. Not to mention, Friday's Cattle on Feed report is expected to showcase higher placements which packers will try to use as a bearish factor for the immediate market. New showlists appear to be mixed, higher in Texas, but lower in Kansas, and Nebraska/Colorado.

Last week, northern dressed cattle traded for $294 to $301, but mostly at $298, $4 higher than the previous week's weighted average. Southern live cattle traded from $181 to mostly $186, which is steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 82,876 head. Of that, 80% (66,655 head) were committed to the nearby delivery and the remaining 20% (16,221 head) were committed to the deferred delivery.

Boxed beef prices are higher: Choice up $1.43 ($313.33) and select up $1.40 ($303.80) with a movement of 43 loads (20.09 loads of choice, 9.85 loads of select, 4.56 loads of trim and 8.85 loads of ground beef).

FEEDER CATTLE:

The feeder cattle market is trading substantially higher as Monday's market nears the noon hour. With the market being far enough away from immediate resistance, traders have only seen a green light through Monday's trade as the live cattle complex is lending support. Don't be surprised if the market faces some pushback later this week, however, as another Cattle on Feed report will be released and higher placements are fully expected. April feeders are up $2.60 at $254.72, May feeders are up $2.60 at $258.60 and August feeders are up $1.85 at $269.22.

LEAN HOGS:

The lean hog market is following in the cattle complex's shadow as it trades mostly higher. Midday pork cutout values are up considerably which helps propel the market higher, but afternoon values are more crucial. Last Thursday's export report was lukewarm, so hog enthusiasts will be carefully watching for this week's export data and hoping that demand is more aggressive. April lean hogs are down $0.42 at $86.50, June lean hogs are up $0.02 at $102.50 and July lean hogs are up $0.40 at $104.90.

The projected lean hog index for March 15 is up $0.20 at $82.54, and the actual lean hog index for March 14 is up $0.15 at $82.34. Hog prices are lower in the Daily Direct Morning Hog Report, down $1.82 with a weighted average price of $78.92, ranging from $76 to $80 on 730 head and a five-day rolling average of $79.61. Pork cutouts total 122.96 loads with 109.21 loads of pork cuts and 13.75 loads of trim. Pork cutout values: Up $1.76, $95.23.




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