GENERAL COMMENTS:
The livestock complex is trading higher into midday Monday as traders have fully jumped into the market and are noticeably supporting the complex. New showlists appear to be mixed, lower in Texas and Nebraska/Colorado, but higher in Kansas. May corn is down 12 cents per bushel and May soybean meal is down $8.20. The Dow Jones Industrial Average is up 387.05 points and the NASDAQ is up 254.44 points.
LIVE CATTLE:
Although the packing plant strike is well underway at the JBS plant in Greeley, Colorado, the cattle complex is trading higher into midday Monday. A higher trend may seem unusual given the news coverage surrounding this event and the negative toll it's had on the market leading up to this point. But there are a could of reasons why the market could be trading higher as we can't forget that the futures complex is an anticipatory market and it's supposed to account for these things when the information is made available (as its inarguably done over the last couple of weeks), the market could also be finding some modest technical support around its 100-day moving average which is where the spot April contract started the day off from, and then last but not least, some will argue that this could be viewed as a negative factor. Still, the reduction in throughput will likely drive boxed beef prices higher. Needless to say, the market has plenty on its mind as it's wading through the early hours of the new week. April live cattle are up $2.65 at $233.55, June live cattle are up $2.92 at $231.87, and August live cattle are up $2.90 at $229.75.
Last week, Northern dressed cattle were marked at mostly $372, which is $8.00 lower than the previous week's weighted average and Southern live cattle traded at mostly $235 to $236, which is $4.00 lower in Texas than compared to the previous week and $5.00 lower in Kansas than compared to the previous week.
Boxed beef prices are higher: choice up $4.03 ($401.95) and select up $3.27 ($394.81) with a movement of 32 loads (21.09 loads of choice, 3.29 loads of select, zero loads of trim and 7.88 loads of ground beef).
FEEDER CATTLE:
And in keeping in perfect harmony with the live cattle complex, the feeder cattle contracts are charging onward aggressively into midday. Currently, the feeder cattle complex is fronting a rally anywhere from $5.00 to $7.00 higher, with the market's nearby contracts currently seeing the biggest day-over-day gains. More than anything, it seems as though the technical support from the live cattle complex trading higher is helping drive the feeder cattle contracts higher. March feeders are up $6.02 at $355.50, April feeders are up $6.92 at $350.05 and May feeders are up $6.57 at $345.75. And not to be overlooked is the sharp decline this morning in grain prices, as currently, nearby corn prices are down $0.10 to $0.11.
LEAN HOGS:
After falling sharply lower over the last week, the lean hog complex is trading higher into midday Monday as the market may be potentially finding a bottom for its current move. April lean hogs are up $0.17 at $93.62, June lean hogs are up $0.15 at $107.52 and July lean hogs are up $0.30 at $109.60. Helping drive the market higher is also the fact that midday pork cutout values are higher, which traders will always take as extra support of increased demand.
The projected lean hog index for 3/13/2026 is up $0.16 at $91.76, and the actual index for 3/12/2026 is up $0.16 at $91.60. Hog prices are lower on the Daily Direct Morning Hog Report, down $6.05 with a weighted average price of $86.04, ranging from $85.50 to $89.00 on 820 head and a five-day rolling average of $92.35. Pork cutouts total 127.82 loads with 102.73 loads of pork cuts and 25.09 loads of trim. Pork cutout values: up $1.92, $102.11.
No comments:
Post a Comment