GENERAL COMMENTS:
It was a good day for the livestock complex as the contracts closed higher and this morning's export report was at least strong for the hog complex. Yes, cash cattle trade was lower this past week, but only by $2.00 to $3.00. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.21 with a weighted average price of $81.47 on 4,390 head. May corn is up 15 1/4 cents per bushel and May soybean meal is down $1.30. The Dow Jones Industrial Average is up 47.29 points.
Thursday's export report shared that beef net sales of 12,700 mt for 2024 were up 15% from the previous week and 4% from the previous 4-week average. The three primary buyers were South Korea (3,400 mt), Japan (3,400 mt) and China (2,000 mt). Pork net sales of 55,300 mt for 2024 -- a marketing year high -- were up 64% from the previous week and 74% from the prior 4-week weighted average. The three primary buyers were Mexico (32,800 mt), Japan (5,700 mt) and Australia (5,400 mt).
**The markets will be closed on Friday, March 29. DTN market commentary will resume on Monday, April 1. Happy Easter! **
LIVE CATTLE:
The live cattle complex was able to round out the week on a higher note as all of the contracts closed higher despite cash prices trading lower and the morning's export report being lukewarm. April live cattle closed $1.40 higher at $185.00, June live cattle closed $1.57 higher at $180.25 and August live cattle closed $1.52 higher at $178.20. Some more cash cattle trade began to develop around the noon hour and Southern live cattle were marked at $186 which is $2.00 lower than last week's weighted average, and Northern dressed cattle were marked at $299 to $300 which is $2.00 to $3.00 lower than last week's weighted average.
Thursday's slaughter is estimated at 116,000 head -- 1,000 head less than a week ago and 9,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.22 (308.36) and select up $2.74 ($301.17) with a movement of 149 loads (97.07 loads of choice, 13.79 loads of select, 13.43 loads of trim and 24.53 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Given that there could still be some clean-up trade on Friday, it's tough to tell what next week's market will do.
FEEDER CATTLE:
The corn complex closed $0.15 to $0.16 higher in its nearby contracts as the USDA's March planting survey showed that corn plantings were estimated at 90 million acres, which is less than expected and down from the 94.6 million a year ago. At first, the corn complex's price increase sent feeders trading lower, but by the day's end feeders were able to regain their strength as the live cattle complex lent some technical support. April feeders closed $0.25 higher at $247.12, May feeders closed $0.42 higher at $248.70 and August feeders closed $0.92 higher at $258.82. At Mitchell Livestock Auction in Mitchell, South Dakota compared to last week feeder steers weighing 900 to 1,000 pounds sold steady to $5.00 higher, feeder heifers sold steady to $1.00 higher, but lighter weight heifers traded softer. Feeder cattle supply over 600 pounds was 88%. The CME feeder cattle index 3/27/2024: down $2.24, $248.99.
LEAN HOGS:
The lean hog complex ran higher through Thursday's end as the market was well supported by the morning's export report and found mixed news in Tuesday's Hogs and Pigs report, which you can access here:
The report will likely be found as neutral to somewhat bearish given that there are more hogs than expected, and that there are more hogs to market this summer than anticipated. But the breeding herd did show a decrease in sows as profitability in 2023 was nearly impossible for most producers. April lean hogs closed $0.52 higher at $86.62, June lean hogs closed $0.15 lower at $101.45 and July lean hogs closed $0.02 higher at $104.00. Pork cutouts totaled 226.89 loads with 202.46 loads of pork cuts and 24.43 loads of trim. Pork cutout values: up $0.46, $94.52. Thursday's slaughter is estimated at 489,000 head -- 1,000 head less than a week ago but 11,000 head more than a year ago. The CME lean hog index 3/26/2024: up $0.56, 84.25.
MONDAY'S HOG CALL: Higher. Given that packers will be coming off a long weekend, it's likely that they show Monday's market substantial interest.
No comments:
Post a Comment