Tuesday, March 5, 2024

Tuesday Closing Livestock Market Update - Cattle Recover What Monday Lost

GENERAL COMMENTS:

It was a positive day for the cattle complex as the markets were able to regain the position in which Monday's market lost -- but the same positivity wasn't noted in the hog complex. Bids were offered in the North at $182 but no cattle traded. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.47 with a weighted average price of $74.63 on 5,557 head. May corn is down 3 3/4 cents per bushel and May soybean meal is down $3.60. The Dow Jones Industrial Average is down 404.64 points.

LIVE CATTLE:

The live cattle complex was able to close higher as the market basically regained all of what Monday's market threw away. The real pressure will come in Wednesday's market as traders will once again be up against resistance pressures and will have to decide if support is strong enough to continue to move the market higher. Cash bids are currently being offered in Nebraska at $182, but no cattle have traded at this point. Asking prices in the South are noted at $186 but remain unestablished in the North. Trade isn't expected to develop until the second half of the week. April live cattle closed $1.32 higher a $188, June live cattle closed $0.95 higher at $183.52 and August live cattle closed $0.85 higher at $182.77. 

Tuesday's slaughter is estimated at 122,000 head -- 3,000 head less than a week ago and year ago.

Boxed beef prices closed lower: choice down $1.51 ($304.79) and select down $0.30 ($294.87) with a movement of 137 loads (88.04 loads of choice, 20.56 loads of select 4.42 loads of trim and 23.95 loads of ground beef).

WEDNEDSAY'S CATTLE CALL: Steady. Given that boxed beef prices have shown some weakness, it's likely that cattle trade steady this week.

FEEDER CATTLE:

The feeder cattle complex had no issue closing higher Tuesday afternoon given the fact that live cattle contracts closed higher, that corn prices closed lower, and that demand continues to remain strong in the countryside. As the days continue to pass, the closer time gets to spring and green grass the higher feeder cattle prices are likely to become. March feeders closed $0.75 higher at $252.30, April feeders closed $1.42 higher at $257.17 and May feeders closed $0.92 higher at $258.70. At Joplin Regional Stockyards in Carthage, Missouri compared to last week steers under 725 pounds sold $10.00 to $15.00 higher while the heavier weighted steers sold steady to $3.00 higher. Feeder heifers traded steady to mostly $5.00 higher with the exception of four weights selling for up to $12.00 higher. Feeder cattle supply over 600 pounds was 62%. The CME feeder cattle index 3/4/2024: not available at this time.

LEAN HOGS:

Try as it wish -- try as it might -- the lean hog complex wasn't able to close higher as the market is up against resistance pressure and has fallen short of receiving the fundamental support it needs to surpass current resistance levels. April lean hogs closed $1.10 lower at $85.17, June lean hogs closed $0.52 lower at $101.60 and July lean hogs closed $0.12 lower at $103.17. The biggest deterrent that kept the carcass prices from closing higher was the belly (once again) as it alone fell $10.71 this afternoon. Pork cutouts totaled 301.56 loads with 273.97 loads of pork cuts and 27.58 loads of trim. Pork cutout values: down $1.39, $91.43. Tuesday's slaughter is estimated at 454,000 head -- 37,000 head less than a week ago and 30,000 head less than a year ago. The CME lean hog index 3/1/2024: up $0.15, $80.41.

WEDNESDAY'S HOG CALL: Lower. Given that packers bought over 5,000 head in Tuesday's market and that pork cutout values closed lower -- it's likely that they'll be less active in Wednesday's market.




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