GENERAL COMMENTS:
Thursday was a mixed market for the livestock complex as the cattle contracts traded higher, but the hog sector traded sharply lower. Some light trade was reported in the North at $313, which is $2.00 lower than last week's weighted average. May corn is down 12 1/2 cents per bushel and May soybean meal is down $2.30. The Dow Jones Industrial Average is down 193.62 points.
Thursday's export report shared that beef net sales of 18,200 mt for 2025 were down 15% from the previous week but up 4% from the prior 4-week average. The three largest buyers were South Korea (8,600 mt), Japan (2,500 mt) and China (1,800 mt). Pork net sales of 32,200 mt for 2025 were up 26% from the previous week but unchanged from the prior 4-week average. The three largest buyers were Mexico (13,300 mt), Japan (3,500 mt) and China (2,800 mt).
LIVE CATTLE:
The live cattle complex was able to successfully round out the day higher as the market was well supported by traders. The futures complex is still not without a slight bit of bearishness lingering overhead as the market continues to trade in between the market's 40-day and 100-day moving averages. And until cattlemen can see that traders have fully committed to moving the market above its 40-day moving average, some nervousness remains. Nevertheless, traders participated in the market modestly throughout the day, which helped keep prices elevated. April live cattle closed $1.50 higher at $196.12, June live cattle closed $1.05 higher at $192.32 and August live cattle closed $0.80 higher at $191.07. Throughout the day some light trade was reported in Nebraska at $313, which is $2.00 lower than last week's weighted average. Bids were offered throughout the day in Texas at $196, but with asking prices firm at $200 to $201 packers and feedlot managers remained at odds. More trade will need to develop on Friday.
Thursday's slaughter is estimated at 118,000 head -- 1,000 head more than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.72 ($311.18) and select down $1.11 ($302.13) with a movement of 163 loads (112.19 loads of choice, 19.89 loads of select, 12.07 loads of trim and 18.50 loads of ground beef).
FRIDAY's CATTLE CALL: Steady. Given that some early sales have been marked lower than last week's weighted average, the market's best hope for trade this week is likely at steady money.
FEEDER CATTLE:
The feeder cattle complex maintained its higher trend through Thursday's close as traders continued to support the live cattle complex diligently. With the market's stealthy $2.00 advancement in most of its contacts, the spot March contract is now within $5.00 from the contract's high reached in late January. March feeders closed $2.07 higher at $276.45, April feeders closed $2.02 higher at $275.55 and May feeders closed $2.15 higher at $273.97. At Hub City Livestock Auction in Aberdeen, South Dakota, compared to last week, the best test on steers was of those weighing 700 to 749 pounds, which traded $7.00 to $12.00 higher, and those weighing 750 to 799 pounds and 900 to 999 pounds, which both traded steady. The best test on heifers was of those weighing 650 to 699 pounds, which traded mostly steady, but those weighing between 750 to 799 pounds traded $4.00 to $5.00 higher. The change from cold wintery weather to nice sunny days brought a plethora of cattle to the sale as over 7,000 head were offered in today's auction. Feeder cattle supply over 600 pounds was 92%. The CME feeder cattle index 2/26/2025: up $0.91, $279.64.
LEAN HOGS:
The lean hog complex seemed to adopt the Chicken Little "the sky is falling" mentality throughout the day which led to its stark $2.00 to $3.00 decline. The mass pandemonium stemmed from the announcement that tariffs would indeed be imposed on Mexico and Canada as early as next week. This realization startled the market as traders and pork producers alike are concerned about the opportunity of being able to export pork into our neighboring countries if this does indeed happen. April lean hogs closed $3.92 lower at $84.37, June lean hogs closed $3.27 lower at $97.60 and July lean hogs closed $2.90 lower at $99.47. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.37 with a weighted average price of $89.49 on 2,116 head. Pork cutouts totaled 228.87 loads with 203.85 loads of pork cuts and 25.03 loads of trim. Pork cutout values: up $4.30, $100.96. Thursday's slaughter is estimated at 489,000 head -- 16,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index 2/25/2025: up $0.02, $89.49.
FRIDAY'S HOG CALL: Lower. At this point, packers have likely completed the vast majority of their buying for the week.
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