Wednesday Midday Livestock Market Summary - Livestock Futures Mixed on Grain Pressure

General Comments

Limited direction is seen Wednesday with mixed price levels keeping live cattle trade sluggish. Initial firm losses in lean hog futures has stabilized, with most contracts 10 to 40 cents lower. Corn futures are lower in sluggish trade. May corn futures are 4 cents lower. Stock markets are lower in light trade. Dow Jones is 118 points lower with Nasdaq down 49 points.

LIVE CATTLE:

Trade in live cattle markets is hovering in a narrowly mixed range. This overall lack of direction has pulled nearby prices away from initial gains, but April contracts are struggling to hold onto 10 to 25 cent gains at midday. Little direction is seen in market fundamentals at this point as traders also see limited market worthy news in cattle on feed estimates which will be released at the end of the week. The biggest factor in the cattle on feed report release will be that data is now up to date following the government shutdown. Overall lack of direction is expected to be seen in most contracts through the end of the session. Cash cattle markets still remain sluggish with bids nowhere to be seen midweek. A few asking prices are slowly starting to trickle in as cattle are priced at $130 per cwt live. It is expected to be late in the week before active trade develops. Boxed Beef cut-outs at midday are higher, $0.74 higher (select) and up $0.83 per cwt (choice) with light movement of 63 total loads reported (33 loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 21 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures are mixed to mostly lower with the most aggressive softness developing in summer contracts. The shift lower is testing support levels set during the middle of February and a close below these levels is expected to spark additional underlying pressure through the complex. There may be some additional market pressure developing as limited support is seen in live cattle trade, potentially capping previous market gains.

LEAN HOGS:

Light pressure has developed in most lean hog contracts with all trade except spot month April holding 10 to 40 cent losses due to very limited activity Wednesday morning. April futures have posted more aggressive losses as traders focus on pulling back from recent gains in order to adjust positions and take profits midweek. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.06 at $44.62 per cwt with the range from $42.00 to $45.07 on 5,017 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.46 at $44.51 per cwt with the range from $42.00 to $45.00 on 1,024 head reported sold. Pork carcass trickled lower despite an aggressive $7.53 per cwt rally in rib values. Pork cutouts fell $0.06 per cwt at $62.53 per cwt with 178 loads traded. Lean hog index for 3/4 is $51.94, up $0.01, with a projected two-day index is $51.85, down $0.09.

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Wednesday Morning Livestock Market Summary - Continued Hog Market Strength Expected

GENERAL COMMENTS:

Limited activity is expected in the cash cattle markets with asking prices and bids still undeveloped, but likely to become more active as the day continues. The likelihood of trade before the end of the week is low given that both sides may stick to their positions unless there is a major shift in futures trade in the next couple of days. Futures trade is expected mixed in limited early trade with limited buying potentially stepping back into the nearby contracts in order to regain last week's losses. This may not test resistance levels or contract highs in the near future, but the strength in fundamentals and expected continued demand support is likely to help support overall beef demand.

Follow-through buying is expected to initially develop in lean hog futures as traders continue to distance price levels from recent market lows. This is helping to spark additional interest from commercial and noncommercial traders through early March despite continued concerns of large pork supplies in the system. Cash hog values are expected mixed in a limited range from 50 cents lower to 50 cents higher with most bids Wednesday morning expected steady. Wednesday slaughter runs are expected at 477,000 head. Saturday runs are expected at 184,000 head.

	BULL SIDE		BEAR SIDE
1)	Early estimates of feeder cattle placements on Friday's Cattle on Feed report are hovering at 92% year-ago levels. This dip in placements through the month of January should help to firm nearby price levels based on limited cattle moving into yards.	1)	Cold weather and above average snow cover in many areas through early March will likely significantly delay pasture conditions in many areas. This will significantly impact cow/calf operators and young calves going to pasture through the spring.
2)	Firm buyer support in spot April live cattle trade Tuesday indicates the potential to keep recent losses limited, as traders may quickly move back into the complex in the next few trading sessions, potentially once again testing long-term highs.	2)	Limited interest in cash cattle trade midweek and a recent pullback in futures trade appears to be cooling the cash cattle market momentum that has been building through late February. This could allow packers to pick up additional needs without increasing spending significantly.
3)	Active buying in deferred contracts is showing increased underlying support moving from just spot-month trade and through the entire complex. This uniformity is likely to help spark additional short-term gains through the rest of the week.	3)	Continued uncertainty is still developing about export demand, and much of this surrounds potential trade deals with China. The lack of specifics and overall needs in China continues to keep targets illusive.
4)	Continued firmness is expected in pork values with prices likely to show steady-to-firm market gains in most primal pork cuts through the end of the week.	4)	Cash hog values have done a poor job in fo

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Tuesday Midday Livestock Market Summary - Mixed Trade Limits Previous Losses

General Comments

Firm buyer support quickly moved back into lean hog trade as support in April lean hog futures sparking underlying support and posted triple-digit gains in most contract months. Cattle futures shifted lower early, but have bounced higher following light to moderate gains in spot-month contracts. Corn futures are higher in sluggish trade. May corn futures are 1/4 cent higher. Stock markets are lower in light trade. Dow Jones is 17 points lower with Nasdaq up 2 points.

LIVE CATTLE:

Mixed trade has developed midday Tuesday following early-morning losses. The lack of follow-through pressure following Monday's triple-digit losses in April contracts has created a sense of market stability as traders focus on continued strong beef demand as well as potential for cash market gains at the end of the week. Light pressure is seen in deferred futures, although the tone of the market is starting to stabilize. Cash cattle trade is quiet as bids and asking prices are still undeveloped. This may continue over the next couple of days as traders look for increased activity late in the week. Boxed Beef cut-outs at midday are higher, $0.74 higher (select) and up $0.80 per cwt (choice) with light movement of 54 total loads reported (36 loads of choice cuts, 11 loads of select cuts, no loads of trimmings, 7 loads of ground beef).

FEEDER CATTLE:

Limited pressure is holding midday in nearby lean hog trade. This has pushed prices 15 to 25 cents per cwt lower in spring and early summer contracts as traders focus on limited direction through the entire complex. The lack of follow through support seen Monday is causing traders to focus on recent pressure in live cattle trade, and the potential for follow through losses over the near future.

LEAN HOGS:

Strong follow-through buyer support has moved through lean hog trade with triple-digit gains developing in most nearby contract months through the morning. Traders are not only pushing front-month April contracts further away from support levels, which is sparking renewed long-term interest, but the focus on stabilizing pork and cash hog values is helping to bring buyers back into summer and fall contracts. This is relieving some of the uncertainty surrounding demand concerns through the end of the year. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.14 at $44.77 per cwt with the range from $42.00 to $45.07 on 3,875 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork carcass stabilized Tuesday with wide price movements in select primals. Pork cutouts fell $0.06 per cwt at $62.87 per cwt with 240 loads traded. Lean hog index for 3/1 is $51.93, down $0.20, with a projected two-day index is $51.94, up $0.01.

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Grass tetany preventable in grazing beef cows

Plan ahead to minimize metabolic disorder by providing high-magnesium supplement prior to turning cows out onto lush spring pasture.

While winter maintains its strong grip on many areas of the U.S., spring is approaching, with grass and other forages greening up.

University of Nebraska-Lincoln (UNL) associate professor and range management cow/calf specialist Karla H. Jenkins noted in a recent "UNL BeefWatch" newsletter that beef producers are anxious to get cows out to grass, but areas that have predominately cool-season forages tend to have lush spring growth that can lead to grass tetany in cows.

Jenkins, based at the UNL Panhandle Research & Extension Center in Scottsbluff, Neb., said although treatments are available for afflicted cows if caught quickly enough, prevention is always the best policy.

Grass tetany occurs when circulating magnesium is low in beef cattle, Jenkins noted, explaining that symptoms include staggering, convulsions, excitability and twitching and can result in death. While it can affect growing cattle, grass tetany generally affects older lactating cows.

According to Jenkins, the magnesium requirement for the pregnant cow is 0.12% of the diet on a dry matter basis and jumps to 0.2% with lactation. Moreover, magnesium levels in colostrum are three times higher than in the milk during the rest of the lactation, she added.

Unlike some other minerals, magnesium is not stored and mobilized in the tissues for times when it is deficient in the diet, she said. Magnesium is absorbed across the rumen wall, and how much magnesium is circulating in the blood is highly dependent upon intake.

Additionally, if the feed/forage is high in potassium or nitrogen — as many lush, growing forages can be — magnesium absorption can be compromised, Jenkins said. Cool, cloudy days associated with wet spring weather often increase the risk of grass tetany issues.

To help prevent issues with grass tetany, producers should start providing a high-magnesium mineral to cows about a month before turning them out onto lush pasture to get them used to consuming it and continue to provide a high-magnesium supplement until grass starts to elongate and mature, when the risk of grass tetany lessens, Jenkins said.

Although providing a high-magnesium mineral helps reduce the incidence of grass tetany, producers should talk to a local veterinarian and have a treatment plan in place for cows that do succumb to grass tetany, as treatment must take place quickly in those cows, Jenkins noted.

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