3/11/2025 Market Commentary

Live Cattle: There has been no cash trade yet this week, but everything is pointing to a higher trade. Rumors of a $205 bid early this week have not caught any sales. The futures market has been quiet relative to last week. The worry of equity markets bleeding into the cattle market felt like the reason for a softer Tuesday. Boxed Beef was quoted higher at noon along with the choice/select spread finally widening out. The cutout and the spread are starting to show signs of demand picking up. USDA updated its 2025 beef production numbers today, and the U.S. is now projected to see a 1% decrease this year compared to last year. Imports were also increased 105 million lbs. following a massive January import total.

Feeder Cattle: Feeder Cattle futures have been well supported to begin the week. The CME feeder cattle index was quoted $2.59 higher today as feedlots can pay more for the cash feeders with the higher live cattle board. Available feeder cattle remain tight and this does not look to change anytime soon. The deferred contracts posted new all-time highs this morning before the futures broke back and finished mixed.

Lean Hogs: Lean Hogs rallied nearly $8/cwt at the end of last week and the beginning of this week. The April contract ran right into a big resistance area yesterday and failed to get through that area today. The USDA lowered its 2025 production estimates by 105 million lbs., citing lower-than-expected slaughter numbers so far this year. The Hogs and Pigs Report at the end of March will shed light on the current state of the sow herd and overall hog herd. So far in 2025, it looks like the last report is roughly 1.5% too high on market-ready hogs.

Corn: Today’s USDA report was all but exciting as the USDA made no changes to the domestic balance sheet. Carryout remains at 1.540 billion bushels, nearly 26% less than 9 months ago. World carryout was reduced slightly, but with most of those bushels in the hands of China, the market did not see much of a reaction. We are three weeks away from the first look at the 2025 growing season. Many still believe we will see massive corn acres in this report and a trendline yield, just as we saw coming out of the AgForm outlook conference.

Closing Prices

Corn May 469.25 5.25
CHI Wheat May 551.25 2.75
KC Wheat May 564.75 1.00
MN Wheat May 592.75 1.25
Soybeans May 1025.00 2.25
Soy Oil May 41.93 0.33
Soy Meal May 301.80 0.50
Live Cattle April 199.550 1.025
Feeder Cattle April 277.700 0.225
Lean Hogs April 86.550 1.750
Crude Oil April 66.59 0.56
Ch Cutout 314.31 1.19
Sel Cutout 306.09 2.58
Feeder Index 273.95 0.18
Pork Cutout 96.8 0.00
Dollar Index 103.953 0.1410
DOW 41,433 478.23
National Corn Basis -0.39 0.0041
National Bean Basis -0.6394 0.007

Dates to Remember

March 31- Prospective Planting

Hog Fundamentals

Current One Week Ago Change One Year Ago Change
Lead Month Future 86.550 82.350 4.200 83.275 3.275
National Cash 88.90 88.41 0.49 76.16 12.74
Index 89.71 89.94 0.23 81.61 8.10
Cutout 98.22 99.79 1.57 93.51 4.71
IA/SMN Cash 88.98 89.16 0.18 76.16 12.82
IA/SMN Weights 289.10 288.10 1.00 287.30 1.80
Slaughter 2,418,000 2,538,000 120,000 2,440,332 22,332

Cattle Fundamentals

Current One Week Ago Change One Year Ago Change
North Cash 201.25 187.51
South Cash 196.61 185.79
North Steer Basis 2.00 -2.51
Choice Boxes 322.32 313.92 8.40 308.88 13.44
Select Boxes 309.49 303.15 6.34 298.88 10.61
Spread 12.83 10.77 2.06 10.00 2.83
Carcass Weights 875 877 2 834 41
Slaughter 578,000 566,000 12,000 583,995 5,995
FC Index 276.54 278.75 2.21 248.24 28.30

Cash Cattle Markets

Region This Week Last Week Last Year
TX/OK/NM $196.67 $185.94
KS $196.61 $185.79
NE $201.25 $187.51
IA/MN $203.39 $188.21

CFTC Disaggregated COT Report

As of: 3/4/2025
Commodity Current Managed Money Change Current Producer/Commercial Change Total OI Total OI Change
Live Cattle 110,468 10,843 -150,116 14,263 355,830 2,234
Feeder Cattle 28,880 736 -11,207 202 78,317 126
Lean Hogs 57,480 33,012 -113,296 26,587 263,420 6,708
Corn 219,752 117,702 -539,161 82,291 1,828,967 7,912
Soybeans -35,487 43,696 69,293 25,377 811,085 10

Live Cattle Markets

April Live cattle have fallen back below the $200.000 mark as traders wait to see what cash cattle trade at this week. Resistance levels above the market are 201.975 and 203.275. Support under the market is the 20-day MA of 195.675 and the 100-day MA of 193.425.

Feeder Cattle Markets

April Feeders took out the contract high of 279.00 and posted a new contract high at 280.300. This will be the resistance area on the top side of the market. Support under the market is at 272.550 followed by the 20-day MA of 271.650.

Lean Hogs Markets

The 20, 50 and 100-day MA all land from at 88.100 to 88.675. Our most recent high has been 88.600. Stiff resistance will be at 88.600. Support under the market is at the 200-day MA of 84.225.

Corn Markets

Corn made new highs for the move today before finishing the day lower. The market did poke through the 38% resistance level but settled below that line. The 50% retracement is at 480 1/2 and is an upward area to watch. Support will be at the 200-day MA of 456 and the 100-day MA of 464 1/2.

This material should be construed as the solicitation of trading strategies and/or services provided by Producers Commodities LLC as noted in this presentation. These materials have been created for a select group of individuals, and are intended to be presented with the proper context and guidance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by the IB, Producers Commodities LLC. The trading of derivatives such as futures, options, and over-the-counter (“OTC”) products or “swaps” may not be suitable for all investors. Derivatives trading involves risk of loss and past financial results are not necessarily indicative of future performance. Any hypothetical examples given are exactly that and no representation is being made that any person will or is likely to achieve profits or losses based on those examples. Producers Commodities LLC is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. This material does not constitute an individualized recommendation, or take into account the particular trading objectives, financial situations, or needs of individual customers. Contact designated personnel from Producers Commodities LLC for specific trading advice to meet your trading preferences or goals.

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