GENERAL COMMENTS:
It was a supportive day for the cattle complex as both the live cattle and feeder cattle markets were able to close higher as traders hope that the cash cattle market's willpower doesn't weaken. Meanwhile, the market wasn't as fruitful for the hog complex as traders weren't able to advance the market following Tuesday's higher end. Hog prices closed higher on the Daily Direct Morning Hog report, up $0.92 with a weighted average price of $78.27 on 5,276 head. May corn is down 1/2 cent per bushel and May soybean meal is down $2.80. The Dow Jones Industrial Average is up 37.83 points.
LIVE CATTLE:
Wednesday was a powerful day for the live cattle complex as traders noted the strength in feedlots' desire to sell cattle higher again this week and consequently ran the futures contracts higher. Today's higher move pressured the top side of the market's current trading range and come Thursday, traders will be pressured once again to either respect that threshold and trade steady/somewhat lower, or they'll be pressured to break out and solidify their decision to advance the market. Asking prices in the South are noted at $187, and some asking prices are being noted in the North at $300. If feedlots are able to get cattle traded for $300, that would take out the high made last June in Nebraska at $299.51. April live cattle closed $1.67 higher at $189.92, June live cattle closed $2.10 higher at $186.05 and August live cattle closed $1.57 higher at $184.37.
Wednesday's slaughter is estimated at 118,000 head -- 6,000 head less than a week ago and 7,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.77 ($309.82) and select up $1.44 ($301.04) with a movement of 105 loads (72.01 loads of choice, 14.36 loads of select, 5.29 loads of trim and 13.42 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $1.00 higher. It's tough telling who's going to win this week's battle in the cash cattle market as feedlots are determined to see higher prices again this week, but packers are going to fight that tooth and nail.
FEEDER CATTLE:
With the live cattle market lending ample support in their higher futures close, combined with the bullish nature of the cash cattle -- feeders were able to close noticeably higher Wednesday afternoon. March feeders closed $1.30 higher at $250.27, April feeders closed $1.72 higher at $255.85 and May feeders closed $1.90 higher at $258.60. With the market being roughly $5.00 away from current resistant levels, the market has plenty of room to trade higher before it would feel any technical pressure. At Winter Livestock Auction in La Junta, Colorado compared to last week feeder steers sold mostly $2.00 to $7.00 higher across all weight classes with instances of sharply higher. Feeder heifers traded $1.00 to $9.00 higher. Feeder cattle supply over 600 pounds was 39%. The CME feeder cattle index 3/12/2024: down $0.07, $248.19.
LEAN HOGS:
Following Tuesday's sharply higher close the lean hog market wasn't able to close with as much gusto by Wednesday's final bell. April lean hogs closed $0.47 lower at $84.87, June lean hogs closed $0.47 lower at $101.72 and July lean hogs closed $0.12 lower at $103.72. Pork cutout values were a little disappointing as the carcass price was pulled lower largely thanks to the $3.10 drop in the loin. Hopefully, Thursday's export report lends the market some additional support like it has here recently. Pork cutouts total 273.15 loads with 248.73 loads of pork cuts and 24.42 loads of trim. Pork cutout values: down $0.63, $91.84. Wednesday's slaughter is estimated at 493,000 head -- 5,000 head more than a week ago and 13,000 head more than a year ago. The CME lean hog index 3/11/2024: up $0.20, $81.61.
THURSDAY'S HOG CALL: Steady. With packers electing to run aggressive slaughter speeds, it's likely that they'll have to maintain steady buying interest in the cash market to keep up with demand.
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