With the board and boxed beef prices trending higher, the cash cattle market is seeing some light trade in Kansas at $1.00 stronger than last week’s weighted average.
As snow begins to fly in the North, live cattle, feeder cattle and lean hog futures are higher. The cash cattle market has noted some light trade beginning to take place in Kansas at $1.00 stronger than last week. If the board can continue to perform well, the market stands a chance at seeing prices trade even stronger.
May corn is up 12 1/4 cents per bushel and May soybean meal is up $1.30. The Dow Jones Industrial Average is up 104.66 points.
The live cattle complex is keeping with Monday’s aggressive pace and attempting to push the board higher and also trade cash cattle higher this week. April live cattle are up $1.50 at $140.02, June live cattle re up $1.50 at $136.30 and August live cattle are up $0.90 at $137.52. There’s been some light trade noted in parts of Kansa at $139, which is $1.00 higher than last week’s weighted average.
Bids of $223 ($1.00 higher) are being offered in Nebraska, but thus far feedlots have passed on the offer. With the stronger tone rippling into all sides of the cattle market, its looking like feedlots are going to stick to their guns and demand higher prices this week. Asking prices are around $140-plus in the South and the North has yet to share what they’d like to see. If this type of support (higher cash, higher futures market, strong slaughter, strong boxed beef prices) can continue through Tuesday’s close, then the market stands a real chance at taking on the 40-day moving average of $136.66.
Boxed beef prices are higher: choice up $0.75 ($272.86) and select up $1.25 ($261.54) with a movement of 72 loads (36.52 loads of choice, 12.08 loads of select, 15.02 loads of trim and 8.47 loads of ground beef).
Feeder cattle futures are looking the market dead in the eye and praying the support the live cattle contracts are lending holds up against the grain market rally. Cattlemen are running on fumes this week as they try to keep calves alive during this monstrous storm. But the live cattle and feeder cattle contracts are rallying as the snow blows in and wind whips, as the cattle market does indeed love a good snowstorm. April feeders are up $1.25 at $157.90, May feeders are up $1.55 at $161.47 and August feeders are up $0.40 at $173.70.
The lean hog complex has again found support Tuesday with nearby contracts $3.00 higher. June lean hogs are up $3.65 at $118.92, July lean hogs are up $3.62 at $120.02 and August lean hogs are up $2.90 at $118.30. The big question the hog market will have to answer in the days ahead is what is pork demand going to do? With Easter right around the corner and Lent ending Thursday, the market could see a spike in demand as pork continues to be a good buy compared to other meats.
But as the nation faces unbridled inflation, projecting what long-term demand is going to do can only be answered with time. Heading into Tuesday afternoon, we will be keeping a close eye on pork cutout values to try to gain a better understanding of the market’s needs.
The projected CME Lean Hog Index 4/8/2022 is down $0.43 at $99.63, and the actual index for 4/7/2022 is down $0.62 at $100.06. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality, but we can see that 3,885 head have sold and that the five-day rolling average now sits at $98.74. Pork cutouts total 178.16 loads with 147.01 loads of pork cuts and 31.15 loads of trim. Pork cutout values: down $0.76, $105.88.