GENERAL COMMENTS:
Livestock futures continued to move higher again Wednesday, with active support seen early in the session in feeder cattle trade. This helped to spark follow-through buying in all live cattle contracts and eventually spilled over to the lean hog complex, which posted gains in all nearby contracts at the closing bell. Nearby live cattle and feeder cattle contracts closed over $1 per cwt higher, but this is significantly lower than session highs, where nearby feeder cattle were posting aggressive gains of $4 per cwt on the first trading day of the month. Continued tight supplies of both beef and long-term cattle numbers continue to limit bearish interest in the already red-hot cattle and beef prices. Lean hog futures are holding the firm trading range seen over the past month, but current market supplies are limiting further aggressive buying. The pressure in the grain trade was driven by the softness in the wheat complex, which created some uncertainty in most ag commodities at the end of the day. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.41 with a weighted average of $90.17 on 1,609 hogs. May corn closed down 3 1/2 at $4.543 and May soybean meal closed up $1.80 at $318.2. The Dow Jones Industrial Average is up 224.23 at 46,565.74.
LIVE CATTLE:
Live cattle prices continue to post moderate gains Wednesday afternoon, with nearby contracts holding gains of $1 per cwt, while deferred contracts were able to hold onto market gains, but give back most of the early day market progress. When it comes to the beef and cattle market, the overall outlook of the market remains generally bullish due to tight supplies and the concern that overall cow numbers may have a hard time rebuilding in the next couple of years due to drought conditions in several areas and limited available grazing opportunities following wildfires in other areas. This is likely to see tight demand through most of the year if not longer, but the main question facing traders is whether consumer demand will continue to remain strong through the spring and summer months at the higher prices. Boxed beef prices eased moderately during the midweek session, although one day's moves are hard to measure the overall longer-term shift of the market. In the cash cattle market this week, markets remain at a complete standstill with bids and asking prices still unavailable, in part due to the active moves in futures trade and wholesale beef values. Trade is likely to be pushed off until late Thursday or Friday at this point. April live cattle closed $1.03 higher at $244.05, June live cattle closed $1.08 higher at $244.35 and August live cattle closed $0.88 higher at $240.675.
Wednesday's slaughter is estimated at 107,000 head, 4,000 head more than a week ago and 16,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.07 ($394.42) and select down $0.34 ($392.59) with a movement of 97.08 loads (74.29 loads of choice, 9.13 loads of select, 2.53 loads of trim and 11.13 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $1 Higher. Feeders remain aggressive following the upward shifts in futures trade and beef values. Packer interest may remain quiet until late in the week.
FEEDER CATTLE:
Feeder cattle futures started Wednesday morning where they left off Tuesday, with aggressive market gains and active buyer support flooding into the market. This pushed prices $3 to $4 per cwt higher through most of the morning in most nearby contracts as traders remain focused on the tight supplies still likely to be seen over the upcoming months, if not years. There continues to be more talk about the ability to open the southern border to beef imports, but traders seem to have limited interest in "talk" at this point. Given the continued red-hot boxed beef values and further support in cash feeder cattle prices around the country, futures seem to be finding it very easy to continue to push prices higher over the last three weeks. Spo month April contracts are now within $5 per cwt of reaching contract highs, but the fundamental support is still able to keep buyers active in nearby and deferred contracts, looking for a strong summer and fall market. April feeders closed $1.63 higher at $370.75, May feeders closed $1.53 higher at $368. and August feeders closed $2.43 higher at $366.85. The CME Feeder Cattle Index for March 30: up $0.89, $366.82.
LEAN HOGS:
Lean hog futures broke away from the lower moving market prices seen earlier in the week on Wednesday, with traders posting narrow to moderate gains in all contract months at the end of the session. Slight market pullbacks during the day in cattle trade seemed to lead to limited, but still noticeable, technical buyer support across the lean hog market during late-day trade. Spot month contracts posted 50-cent per cwt gains, which helped to bring some additional market stability to the complex. There is also growing interest in deferred summer and fall lean hog contracts based on expected stronger pork demand as the year continues, as well as potential tightness of market-ready hogs through the last half of 2026. April lean hogs closed $0.50 higher at $90.925, May lean hogs closed $0.25 higher at $96.775 and June lean hogs closed $0.13 higher at $105.175. Wednesday's hog slaughter is estimated at 491,000 head, 6,000 head less than a week ago and 6,000 head more than a year ago. Pork Cutouts totaled 229.57 loads with 206.04 loads of pork cuts and 23.53 loads of trim. Pork cutout values are down $0.67 at $95.58. The CME Lean Hog Index for March 30: down $0.28, $90.48.
THURSDAY'S HOG CALL: Steady. Limited further market direction is likely to keep cash hog prices steady early Thursday morning.
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