Date: February 28, 2024
Another fairly quiet day in the livestock sector during yesterday’s session. Cattle started the day off mixed with not much movement on either side of unchanged, and at one point during the morning fats and feeders were all higher in the face of a higher corn market. But as the day went on, they struggled to find a sense of direction and live cattle finished with slight losses and feeders ended lower in just two of the nearby contracts and a little bit higher in the rest. Aside from the April live cattle contract, Feb through the deep deferreds into the April 25 contract did make it up to new recent highs yesterday. May feeders did the same by just one tick, but all the rest were not able to exceed those recent highs made on Monday. Fed cattle trade only light volume so far in IA at $288 dressed with asking prices in the South at $185 to $186 live. Pork prices and cash hogs were higher yesterday, yet futures leaked lower.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 2/26/2024 – Final
This Week: 12,173 Last Week: 15,769 Last Year: 6,932
Compared to last week feeder steers under 625 lbs. sold 3.00-12.00 higher with some 4 weight steers selling 20.00 higher. Heavier weights sold steady to 2.00 higher. Feeder heifers under 625 lbs. sold 7.00-14.00 higher with heavier weights steady to 3.00 higher. Supply was heavy with very good demand. 7 weight index steers averaged $245 to $256 and 8 weights averaged $232 to $238.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 2/26/2024 – Final
This Week: 11,253 Last Week: 12,234 Last Year: 8,082
Compared to last week: Feeder steers steady to 2.00 higher, over 850 lbs up to 5.00 higher. Feeder heifers 2.00-4.00 higher. Steer and heifer calves mostly steady. Demand very good for all classes. 7 weight index steers averaged $243 to $253 and 8 weights averaged $232 to $238.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 2/26/2024 – Final
This Week: 5,975 Last Week: 5,881 Last Year: 3,692
Compared to the sale last week: Steers 4.00-8.00 higher, except 600-650 lbs 2.00-4.00 lower. Heifers 1.00-8.00 higher, except 550-700 lbs 2.00-5.00 lower. Many load lots in the offering today, mostly of 700-850+ lb steers and heifers. Plenty of smaller strings of both calves and yearlings. 7 weight index steers averaged $259 to $268 and 8 weights averaged $242 to $249.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 2/27/2024 – Final
This Week: 2,949 Last Week: 3,856 Last Year: 2,517
Compared to last week, steer and heifer calves under 600 lbs. were 5.00-10.00 higher with spots 15.00 higher. Stocker and Feeder calves over 600 lbs. were 3.00-6.00 higher. Demand was good on a moderate supply.
Cattle slaughter on Tuesday estimated at 125,000 head, matching last week but down 1,094 from last year. Hog slaughter on Tuesday estimated at 491,000 head, up 1,000 compared to a week ago and up 3,225 compared to a year ago.
Boxed beef cutout values on Tuesday slightly lower on Choice but sharply higher on Select on moderate demand with 100 loads sold.
Choice -.05 @ 301.74, Select +2.41 @ 290.40
CME Feeder Cattle Index 246.46
CME Lean Hog Index 79.78
Pork Carcass Cutout +.88 @ 91.87
February live cattle set to expire tomorrow yet still made a new recent high on Tuesday at $186.37. April will then be the front month and carrying a $2+ premium. The recent high is at $189.20 from last week with a gap on the chart up to $190.27, resistance next at $195 and support at $182.82. March feeders up to a new recent high on Monday at $254.90, with resistance next at $258 and support at $244. April lean hogs recent high last week at $88.90, the contract high at $91.62 and nearby support at $84.
Grains showed some carryover strength from Monday’s session into the overnight trade and to start things off yesterday. All looked to good early but gains faded as the day progressed. Rumors still yet to be confirmed that China is buying U.S. corn, so far only purchasing corn from Ukraine. North Central Brazil the only real concern now weather wise in South America with 10-day precip only expected to be 40% of normal and dry the past couple weeks. It is still very early for too much concern on the recently planted second crop corn and temps still forecasted normal.
Grains were mixed overnight with corn and soybeans trading both side of unchanged and wheat giving back all the gains made yesterday. The short covering rally still intact for corn and wheat as beans and meal continue to make new lows. Brazil bean harvest around 40% complete, first crop corn harvest at 25% complete and second crop corn planting around 60%. Rumors that China cancelling Brazil March beans cargoes still not even enough to get beans turned around.
Corn finished the overnight steady to ½ higher, soybeans steady to ½ lower and wheat 3 to 9 lower. First notice day for March grain futures is tomorrow. Remember to exit or roll positions today as daily limits are removed and volume will be thin. Outside markets have equities lower, US$ higher and energies mixed with crude oil up $.50/barrel.
A cold front sweeping through the U.S. this week but spring like weather returning by the weekend. High winds into early next week are the biggest threat over the western half of the U.S. and heavy rain/snow for the West Coast. The 6-10 day outlook showing below normal temps for the western third and above normal temps for the eastern half on the U.S. with normal to above normal moisture across the entire country.
March corn down to a new contract low on Monday at $3.94 ½, the lowest for a spot contract since November 2020. The long term lower trend holding with resistance at $4.25 then $4.48. March soybeans holding a 3-month long lower trend, a new contract low on Monday at $11.24 ¾, also the lowest spot contract price since November 2020, nearby resistance at $11.74. March Chicago wheat hit a new contract low last week at $5.55 ¼ before reversing higher with strong resistance right around the $6 level. There has been a lower trend holding since early December but honestly it has been a $1 range of sideways trading since early September. March KC wheat down to a new contract low on Monday at $5.61 ½, testing nearby resistance now at $5.83 with the next up at $5.95. March MPLS wheat also a new contract low on Monday at $6.36 ¼ with resistance at $6.72. March meal down to a new contract low yesterday at $326.7 with resistance at $346.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
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