GENERAL COMMENTS:
The cash cattle market currently has some bids being offered at $182 in Kansas, $183 to $184 in Iowa, and at $292 to $294 in Nebraska -- but still no cattle have traded. It's likely trade will be delayed until Friday as feedlots seek more money. May corn is up 7 cents per bushel and May soybean meal is up $2.10. The Dow Jones Industrial Average is up 130.35 points.
Thursday's export sales report shared that beef net sales of 14,000 metric tons (mt) for 2024 were up 14% from the previous week but down 10% from the previous four-week average. The three largest buyers were South Korea (4,300 mt), Japan (2,300 mt) and Taiwan (1,700 mt). Pork net sales of 36,400 mt for 2024 were up 12% from the previous week and 9% from the previous four-week average. The three largest buyers were China (12,600 mt), Mexico (11,200 mt) and Vietnam (5,000 mt).
LIVE CATTLE:
The live cattle complex is trading higher as traders are encouraged by the morning's export sales and are reinvigorated to see midday boxed beef prices higher and feedlots continuing to hold out for better money in the cash market. Some bids are currently on the table in parts of Kansas and Nebraska, but feedlots have yet to let cattle sell as the current bids are simply too low. Asking prices are noted in the South at $186 to $187 and in the North at $294 plus. Trade could be delayed until Friday as feedlots seem comfortable pushing on packers for more money. April live cattle are up $1.00 at $188.22, June live cattle are up $0.90 at $184.17 and August live cattle are up $0.70 at $183.10.
Boxed beef prices are higher: choice up $1.24 ($306.15) and select up $0.63 ($295.72) with a movement of 51 loads (27.77 loads of choice, 6.11 loads of select, 4.18 loads of trim and 12.63 loads of ground beef).
FEEDER CATTLE:
As the corn market runs 7 to 9 cents higher into Thursday's noon hour, feeder cattle contracts have been mildly rocked back on their heels as they wait and see just how much gusto the corn complex plans to push Thursday. All in all, the corn market's upturn shouldn't gravely affect the feeder cattle complex as demand still remains strong in the countryside. Just Wednesday afternoon four-weight calves were selling for $1,800 in South Dakota -- this market is hot even though the futures complex is posting a weaker day. March feeders are down $0.57 at $250.45, April feeders are down $0.37 at $255.50 and May feeders are down $0.15 at $257.62.
LEAN HOGS:
The lean hog complex is slightly higher as traders thankfully received the export report they were hoping for -- strong and supportive! Not to mention, morning cash prices are also higher, which is somewhat surprising given that packers were aggressive in the cash market earlier this week. Thursday's continued support in the cash market highlights the fact that packers were somewhat short-bought and are having to buy more hogs this week to get enough supply built up again. April lean hogs are up $0.02 at $85.05, June lean hogs are up $0.57 at $101.07 and July lean hogs are up $0.40 at $102.80.
The projected CME Lean Hog Index for 3/6/2024 is up $0.17 at $81.48, and the actual index for 3/5/2024 is up $0.44 at $81.31. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.93 with a weighted average price of $77.29, ranging from $71.00 to $78.00 on 2,595 head and a five-day rolling average of $75.52. Pork cutouts total 153.62 loads with 139.64 loads of pork cuts and 13.99 loads of trim. Pork cutout values: down $0.25, $91.24.
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