GENERAL COMMENTS:
Cautious tones have taken over nearby livestock contracts as all three markets are trading lower while some of their deferred months continue to trade higher. Asking prices in the South are noted at $188-plus but remain unestablished in the North. May corn is up 2 3/4 cents per bushel and May soybean meal is up $0.80. The Dow Jones Industrial Average is up 241.11 points.
LIVE CATTLE:
As the market patiently waits to see what comes of the excitement expected later this week when the cash cattle market trades and the Cattle on Feed (COF) report is shared, the live cattle market is trading mixed in the meantime. The market's nearby contracts are trading slightly lower as traders know that trade will be delayed until late in the week. Friday's COF report could be perceived as bearish with placements higher than a year ago, even though it shouldn't be viewed as such given that January placements were delayed by winter storm challenges.
Early asking prices are already noted in the South at $188-plus but asking prices in the North remain elusive. April live cattle are down $0.35 at $188.27, June live cattle are down $0.32 at $185.07 and August live cattle are down $0.10 at $184.25.
Boxed beef prices are mixed: Choice up $1.56 ($314.89) and select down $0.06 ($302.99) with a movement of 75 loads (51.51 loads of choice, 9.57 loads of select, 4.26 loads of trim and 9.53 loads of ground beef).
FEEDER CATTLE:
As of late, the feeder cattle complex has elected to follow the live cattle market's move in almost an identical manner. If the live cattle contracts trade higher, so do the feeder cattle contracts. If live cattle contracts trade lower, it's most likely feeder cattle contracts will, too.
Traders are likely paying closer attention to the live cattle/cash cattle markets than normal as the cash cattle market could break the market's all-time high cash cattle prices set just last June. April feeder cattle are steady at $255.10, May feeders are down $0.20 at $258.92 and August feeders are up $0.22 at $269.95.
LEAN HOGS:
The lean hog complex seems to have lost some of its gusto as nearby contracts are trading $1 to $2 lower. It's not from a lack of fundamental support as morning cash prices and pork cutout values are both higher. Instead, the market's long-term resistance seems to be too much of an obstacle for traders to tackle at this point. April lean hogs are down $1.12 at $85.72, June lean hogs are down $2.45 at $100.57 and July lean hogs are down $1.90 at $103.40.
The projected lean hog index for March 18 is up $0.28 at $82.82, and the actual index for March 15 is up $0.20 at $82.54. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.94 with a weighted average price of $79.86, ranging from $75 to $83 on 1,946 head and a five-day rolling average of $79.65. Pork cutouts total 146.95 loads with 137.79 loads of pork cuts and 9.16 loads of trim. Pork cutout values: Up $0.73, $93.89.
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