Cattle Market Overview

In the latest trading session, March feeder cattle closed at $356.45 per hundredweight, reflecting a significant drop of $8.10. April live cattle followed suit, declining by $4.45 to settle at $233.98 per cwt. On a more positive note, April lean hogs saw an increase, gaining 20¢ to reach $95.20 per cwt.

“As expected, cattle futures experienced a round of profit-taking today as contracts began to appear overbought,” stated Karl Setzer, a partner at Consus Ag Consulting. “This initial situation led to limited losses in feeder cattle as the cash market showed signs of weakness, further adding pressure on futures. Feeders are also beginning to shy away from high-priced replacements, as both the market strength for feeder cattle and heavier weights are contributing to higher costs.” Setzer emphasized that, despite strong values in the fat cattle market and a robust wholesale sector, current returns are negative.

Grain Market Movements

On the grain side, March corn rose by 4½¢, closing at $4.24¾ per bushel, while March soybeans gained 4¾¢ to close at $10.57¾ per bushel. In the wheat market, March CBOT wheat increased by 7½¢ to reach $5.18 per bushel. Kansas City wheat also saw a rise, up 10¢ at $5.27¼ per bushel, whereas Minneapolis wheat experienced a smaller increase, up 2½¢ at $5.65.

Ahead of a 3 p.m. Central Time update, March crude oil was reported at $59.40 per barrel, up by 32¢. In stock market moves, the S&P 500 Index showed a nearly flat change, while the Dow Jones Industrial Average fell by 81.65 points.

Note: Grain and livestock markets will be closed on Monday in recognition of the Martin Luther King Jr. holiday.

Market Insights

In early trading, March corn was noted to be up 3¼¢ at $4.23½ per bushel, while March soybeans decreased by 3¾¢ to $10.49¼ per bushel. Meanwhile, wheat futures remained strong, with CBOT wheat up 7¾¢ at $5.18¼ and Kansas City wheat up 8¾¢ at $5.26 per bushel.

John Zanker, a senior analyst with Farmer’s Keeper, noted, “This week’s loss on the March contract of 25¢ marks the largest one-week decline in two years. Unfortunately, this decline is occurring from a price level we were hesitant to sell again.” He added concerns over a recent increase in harvested acreage which could lead to a sharp drop in acreage going forward, potentially impacting futures dramatically.

Moreover, the latest update showed March feeder cattle down $2.05 to $362.50 per cwt, while April live cattle fell by $1.48 to $236.95 per cwt. However, April lean hogs gained 28¢, bringing it to $95.28 per cwt.

Market Averages and Closing

As of the latest reports, March crude oil has stabilized at $59.42 per barrel. The U.S. Dollar Index was seen declining to 99.02, with the S&P 500 Index increasing by 12.66 points while the Dow Jones Industrial Average was down minimally by 17.41 points.

Stay tuned for further updates as the markets adjust to these evolving conditions.