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DTN Midday Livestock Comments 03/19 11:38
Cattle Trade Higher as Traders Believe Fundamental Support Will Prevail
Still no cash cattle trade has developed, but it's assumed that prices will
trade steady to somewhat higher later this week.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The cattle contracts are trading higher into Wednesday's noon hour as the
bullish underpinning of the market seems to be growing more and more prevalent.
Still no cash cattle trade has developed, but asking prices are noted in the
South at $205 plus. May corn is up 1 1/4 cents per bushel and May soybean meal
is down $2.40. The Dow Jones Industrial Average is up 298.81 points.
LIVE CATTLE:
The live cattle complex is feeling lively as the market is excited to note
the $6.02 jump in choice cuts, which has helped traders feel confident about
their decision to push the spot June contract above the market's resistance at
$201. There still hasn't been any cash cattle trade to speak of, but it's
assumed that prices will trade steady if not higher later this week. Asking
prices are noted at $205 in the South, but are still not known in the North.
April live cattle are up $1.60 at $206.97, June live cattle are up $1.95 at
$202.95 and August live cattle are up $1.60 at $200.30.
Boxed beef prices are mixed: choice up $6.02 ($329.34) and select down $1.00
($308.23) with a movement of 61 loads (41.31 loads of choice, 8.92 loads of
select, 2.76 loads of trim and 8.45 loads of ground beef).
FEEDER CATTLE:
Seeing the live cattle contracts trade higher has sparked even more
enthusiasm throughout the feeder cattle complex as its contracts are
comfortably trading anywhere from $1.00 to $2.00 higher into the noon hour.
March feeders are up $1.80 at $286.77, April feeders are up $1.95 at $286.50
and May feeders are up $2.00 at $287.25. And with the spring season set to
officially begin Thursday, buyer demand in the countryside has been even more
aggressive this week than last week, as buyers know that supplies will run thin
the closer time gets to turn out season.
LEAN HOGS:
The lean hog complex is trading noticeably lower this morning as the
market's resistance at $88.00 simply seems to be too much for traders to bear
at this point. And yes, pork cutout values are slightly higher this morning,
but before traders put much confidence in the market's higher cutout price,
they're going to need to see a steady trend in higher cutout prices. April lean
hogs are down $2.12 at $85.47, June lean hogs are down $1.32 at $96.02 and July
lean hogs are down $1.12 at $97.32.
The projected lean hog index for 3/18/2025 is up $0.08 at $89.41 and the
actual index for 3/17/2025 is up $0.04 at $89.32. Hog prices are lower on the
Daily Direct Morning Hog Report, down $0.24 with a weighted average price of
$90.05, ranging from $86.50 to $91.00 on 2,505 head and a five-day rolling
average of $89.81. Pork cutouts total 158.29 loads with 136.84 loads of pork
cuts and 21.45 loads of trim. Pork cutout values: up $0.18, $95.82.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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