GENERAL COMMENTS:
It was another positive day for the cattle complex as both the live cattle and feeder cattle contracts closed higher. It would appear as though the market is indeed committing to trading higher following the low established last week. No cash cattle trade has developed yet, but packer interest could improve on Wednesday. May corn is down 2 3/4 cents per bushel and May soybean meal is up $2.10. The Dow Jones Industrial Average is up 159.95 points.
LIVE CATTLE:
It was another sound, successful day for the live cattle complex as traders are beginning to fully believe in the idea that the market is going to change its tune and turn from its recent lower trend to a higher one. April live cattle closed $0.62 higher at $195.72, June live cattle closed $0.85 higher at $192.25 and August live cattle closed $0.85 higher at $191.07. Every day when the market inches further and further away from its 100-day moving average is a good day in producer's minds, as it was painful having to look at how close the market was to potentially dipping below that threshold and what bearish implications that would have had for the marketplace. Nevertheless, traders are slowly adding a bottom to the market's trend and once again inching higher. And with the uptick in boxed beef prices, there's even hope that the cash cattle market could potentially trade steady if not a little higher this week, as last week's movement was thin. Asking prices are noted in the South at $200 plus but are still not established in the North.
Tuesday's slaughter is estimated at 122,000 head -- 4,000 head more than a week ago and 1,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.59 ($314.32) and select up $0.16 ($304.13) with a movement of 144 loads (94.87 loads of choice, 21.76 loads of select, 15.84 loads of trim and 11.74 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat higher. With boxed beef prices lending some positive support to the greater marketplace, there's a chance that cash prices could at least trade steady this week.
FEEDER CATTLE:
The feeder cattle complex is the driving force behind the cattle market's recent direction change as it again today boasts an additional $1.00 to $2.00 higher, close behind yesterday's $3.00 to $4.00 advancement. But the recent moisture which parts of the North and Central plains have received mixed with the excellent demand in the countryside, traders have more than enough support to justify the daily gains that they're pushing. March feeders closed $1.92 higher at $274.22, April feeders closed $1.77 higher at $273.80 and May feeders closed $1.97 higher at $272.32. At Joplin Regional Stockyard in Carthage, Missouri, compared to last week, feeder steers and heifers traded $8.00 to $25.00 higher. Feeder cattle supply over 600 pounds was 66%. The CME feeder cattle index 2/24/2025: up $0.07, $279.44.
LEAN HOGS:
It was another painstaking day for the lean hog complex as the market yet again fell lower. What's concerning from a technical standpoint is that the spot April contract is nearing the support plane around $86.00, which remains a critical threshold for the marketplace. If the market happens to break below that threshold, then it's tough to say where the next bottom could be if domestic demand continues to lag behind. April lean hogs closed $0.82 lower at $86.57, June lean hogs closed $0.82 lower at $99.10 and July lean hogs closed $0.85 lower at $100.55. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.24 with a weighted average price of $88.84 on 4,315 head. Pork cutouts are unavailable because of packer submission issues. Tuesday's slaughter is estimated at 489,000 head -- 11,000 head more than a week ago and 2,000 head less than a year ago. The CME lean hog index 2/21/2025: down $0.85, $89.68.
WEDNESDAY'S HOG CALL: Steady. Packers were slightly more aggressive in Tuesday's cash market, but it's likely that they'll still need more hogs and procure them on Wednesday.
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