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DTN Midday Livestock Comments 03/26 11:35
Traders Turn the Livestock Contracts Higher
After backing away from resistance levels, traders are again comfortable
trading the cattle contracts higher.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
Thus far it's been a fruitful day for the livestock complex as all three of
the markets are trading higher. Still no cash cattle trade has developed, but
as feedlot managers seek higher prices again this week, the trade will likely
be delayed until Friday. May corn is down 1 cent per bushel and May soybean
meal is up $1.10. The Dow Jones Industrial Average is down 33.75 points.
LIVE CATTLE:
After a couple of days of downward pressure, the live cattle complex is
again trading higher as the market is no longer up against immediate resistance
pressure. Trades are lower noting the continued support of stronger boxed beef
prices but are patiently waiting for the cash cattle market to show its hand
this week. If prices are again higher, then there's an argument to be made that
the contracts could potentially trade higher. But if boxed beef prices and cash
prices aren't both higher this week. It's then most likely the contracts won't
pressure the high made just last week. April live cattle are up $0.77 at
$207.15, June live cattle are up $0.80 at $203.12 and August live cattle are up
$0.57 at $199.45. Asking prices are noted in the South at $212-plus but are
still not established in the North. Trade will likely be delayed until Friday.
Boxed beef prices are higher: choice up $2.77 ($337.96) and select up $2.98
($317.03) with a movement of 100 loads (45.00 loads of choice 9.32 loads of
select, 25.99 loads of trim and 19.38 loads of ground beef).
FEEDER CATTLE:
Seeming to mirror the same behavior as the live cattle market, the feeder
cattle contracts are back to trading higher. April feeder cattle are up $1.02
at $285.87, May feeders are up $0.97 at $285.10 and August feeders are up $0.82
at $288.80. Demand has been incredible this week again for both feeder cattle
and calves, with undeniable demand being noted for cattle that are suitable for
grass. Buyers know that the closer time gets to turn out season, the more
expensive these types of cattle are going to become.
LEAN HOGS:
The lean hog complex is also trading higher as traders are pleased to see
pork cutout values higher again. The spot April contract isn't confident enough
to take on the market's resistance at $88.00, but it's still trading higher
nonetheless. April lean hogs are up $0.72 at $87.37, June lean hogs are up
$1.15 at $97.40 and July lean hogs are up $0.90 at $98.17. There's a chance
that packers may not be very aggressive in the cash market the rest of the week
as they've already bought a number of hogs in the cash market.
The projected lean hog index for 3/25/2025 is up $0.23 at $89.13, and the
actual index for 3/24/2025 is up $0.11 at $88.90. Hog prices are lower on the
Daily Direct Morning Hog Report, down $0.69 with a weighted average price of
$87.54, ranging from $85.00 to $91.00 on 5,698 head and a five-day rolling
average of $88.31. Pork cutouts total 188.50 loads with 164.72 loads of pork
cuts and 23.77 loads of trim. Pork cutout values: up $1.81, $99.36.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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