DTN Midday Livestock Comments 03/28 11:30
Live Cattle Keep Monday's Momentum
The live cattle contracts are the only market seeming to be able to keep
with Monday's upward trek, as the lean hog and feeder cattle markets both trend
DTN Livestock Analyst
It's a mixed day for the livestock complex as both the feeder cattle and
lean hog markets are leery of trading higher after Monday's aggressive venture,
but the live cattle complex is keeping with Monday's vigorous pace. Asking
prices in the South are noted at $165 to $166 but are still unestablished in
the North. May corn is down 3/4 cent per bushel and May soybean meal is up
$9.60. The Dow Jones Industrial Average is up 64.46 points.
The live cattle market is the only market keeping with Monday's momentum out
of the livestock complex. It's helping matters that boxed beef prices are
finding some footing in this week's market and could potentially lead to
stronger cash cattle trade. The nearby contracts have teetered between trading
higher and trending lower, but the deferred contracts are consistently trading
higher with no pressure seeming to bother their contracts. April live cattle
are steady at $164.90, June live cattle are down $0.12 at $158.75 and August
live cattle are steady at $158.60. It's too early in the week for any cash
cattle trade to have developed, and with boxed beef prices trending higher,
prices could easily trend $1.00 to $2.00 higher this week. Asking prices in the
South are noted at $165 to $166 and are still unestablished in the North.
Boxed beef prices are higher: choice up $0.52 ($280.88) and select up $0.94
($270.66) with a movement of 57 loads (28.57 loads of choice, 11.94 loads of
select, 7.86 loads of trim and 8.18 loads of ground beef).
After rallying throughout Monday's market, the feeder cattle contracts are
back to trading lower as traders look around and appraise the market for
continued support. It is encouraging that the deferred live cattle contracts
are trading higher, but the immediate live cattle contracts are under some
pressure. The corn complex is only trading sideways, which doesn't add too much
more pressure to feeders. April feeders are down $0.40 at $197.22, May feeders
are down $0.55 at $200.82 and August feeders are down $0.12 at $216.82.
After an ambitious Monday, the lean hog complex is trading lower, seeming to
need additional support in order to keep its momentum. April lean hogs are down
$1.10 at $77.52, June lean hogs are down $1.45 at $91.62 and July lean hogs are
down $1.45 at $93.70. Pork demand has seen better interest over the last couple
of days, which could lend traders the additional support they're desiring if
Tuesday's afternoon pork cutout values are able to close higher.
The projected lean hog index for March 27 is down $0.32 at $76.25, and the
actual index for March 24 is down $0.42 at $76.57. Hog prices are lower on the
Daily Direct Morning Hog Report, down $0.58 with a weighted average of $75.45.
Pork cutouts total 197.62 with 171.10 loads of pork cuts and 26.52 loads of
trim. Pork cutout values: down $0.12, $81.10.
ShayLe Stewart can be reached email@example.com
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