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DTN Midday Livestock Comments 03/21 11:44
Fed Cash Cattle Prices Turn $3 to $7 Higher
Even though traders have lost some of their steam ahead of the week's close,
it's thankfully not deterring the cash cattle market.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
Even though traders are cautiously handling the cattle contracts Friday
ahead of the weekend and the monthly Cattle on Feed report -- there's much to
celebrate as fed cash cattle prices are trading anywhere from $3 to $7 higher.
So far, Southern live cattle are trading at mostly $210, which is $7 higher
than last week's weighted average. Northern dressed cattle are trading at $212
to $214, which is $3 to $5 higher than last week's weighted average. May corn
is down 6 1/4 cents per bushel and May soybean meal is up $1.50. The Dow Jones
Industrial Average is down 61.42 points.
LIVE CATTLE:
After an incredible week of near non-stop upward momentum, the live cattle
complex seems to be holding its breath or pausing its nearly unfathomable rally
as the market is only hours away from the weekend and is patiently waiting to
see what the Cattle on Feed (COF) Report yields. Regardless of what the COF
report shows, one could argue that the rally in this week's fed cash cattle
market will overpower whatever the COF report details. So far this week, the
fed cash cattle market's movement has been thin, but prices have been hot. So
far, Southern live cattle are trading at mostly $210, which is $7 higher than
last week's weighted average. Northern dressed cattle are trading at $212 to
$214, which is $3 to $5 higher than last week's weighted average. It's rather
incredible that on a week when throughput has been reduced because of weather
conditions, that packers are still willing to advance the cash market $3 to $7
higher to ensure they have enough supply moving forward. Well done feedlot
managers, well done!
Boxed beef prices are mixed: choice down $2.15 ($325.91) and select up $0.28
($209.64) with a movement of 86 loads (59.25 loads of choice, 5.41 loads of
select, 6.10 loads of trim and 15.02 loads of ground beef).
FEEDER CATTLE:
Even though fed cash cattle prices are trading higher, traders are reluctant
to advance the feeder cattle complex without the support of the live cattle
contracts. March feeders are down $0.10 at $288.25, April feeders are down
$1.25 at $287.20 and May feeders are down $1.47 at $287.62. Friday's weaker
technical performance isn't due to any fundamental rhyme or reason, but rather
because traders are questioning how much higher the market can actually trade,
and as they wait to see what this afternoon's Cattle on Feed report unveils.
LEAN HOGS:
After a challenging week, the lean hog complex has finally found some
support as its contracts are trading higher into Friday's noon hour. April lean
hogs are up $1.22 at $86.77, June lean hogs are up $2.10 at $98.32 and July
lean hogs are up $1.90 at $99.47. It is helpful that again Friday, pork cutout
values are higher, which is stemming from a healthy blend of higher prices
across nearly all the cuts.
The projected lean hog index for 3/20/2025 is down $0.32 at $88.88, and the
actual index for 3/19/2025 is down $0.21 at $89.20. Hog prices are lower on the
Daily Direct Morning Hog Report, down $2.14 with a weighted average price of
$88.26, ranging from $85.00 to $90.00 on 3,849 head and a five-day rolling
average of $89.47. Pork cutouts total 236.90 loads with 218.82 loads of pork
cuts and 18.08 loads of trim. Pork cutout values: up $2.48, $98.34.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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