Friday Market Watch

LIVESTOCK:

It was a tough close for the livestock complex as traders sent the contracts trailing lower and the cash markets saw little to no interest. Heading into next week's trade, all eyes will be on the contracts to see how much more downside lays within this move. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.43 with a weighted average of $100.14 on 4,367 head. June lean hogs are down $4.60 at $106.375. 

From Friday to Friday livestock futures scored the following changes: April live cattle off $0.55, June live cattle off $5.78, May feeder cattle off $1.60, August feeder cattle off $8.63, June lean hogs off $12.40 and July lean hogs off $10.00.

Friday's slaughter is estimated at 118,000 head, 1,000 head less than a week ago and 2,000 head more than a year ago. Saturday's slaughter is projected to be around 40,000 head, 23,000 head less than a week ago and 16,000 head less than a year ago. This week's slaughter is estimated at 656,000 head, 9,000 head less than a week ago and 3,000 head more than a year ago.

Boxed beef prices closed lower: choice down $1.82 ($260.78) and select down $3.09 ($247.97) with a movement of 127 loads (58.71 loads of choice, 20.69 loads of select, 36.45 loads of trim and 11.58 loads of ground beef). On average throughout the week choice cuts averaged $263.21 (down $6.37 from last week) and select cuts averaged $252.82 (down $4.31 from last week) and with a total movement of cuts, grinds, and trim totaling 705 loads.

GRAINS:

July corn closed unchanged and December corn was down 1/2 cent. July soybeans closed unchanged, and November soybeans were down 6 1/4 cents. July KC wheat closed down 35 1/2 cents, July Chicago wheat was down 30 cents and July Minneapolis wheat was down 23 3/4 cents. 

DAIRY:

MILK

Class III milk futures were lower for the week in all contracts except for July. This was a reflection of an overall decline of cheese and dry whey prices. The week was not without volatility, but the result was a bit disappointing. Class IV futures closed steady to higher across the board Friday with prices generally mixed for the week. The market seems to be comfortable at the current price levels, while remaining supported. There is little concern of significant pressure on milk prices at present, but there is some concern over market potential if milk production increases and cow numbers increase. Of course, it will not make a difference if demand remains strong or increases. USDA released the March Agricultural Prices report, which showed an increase in the average corn price from February of $0.46 per bushel and a price of $6.56. The premium/supreme hay price averaged $269 per ton, up $3 per ton from February. The all-milk price averaged $25.90 per cwt, up $1.20 from February. The soybean meal price averaged $493.98 per ton, up $13.02 per ton from the previous month. This resulted in an income-over-feed price of $11.55 compared to $10.98 for February.

AVERAGE CLASS III PRICES

3 Month:	$24.45
6 Month:	$24.28
9 Month:	$23.86
12 Month:	$23.22

CHEESE

For the week, block cheese price declined 2.25 cents with three loads traded. Barrel cheese price declined 3 cents with 12 loads traded. Dry whey declined 3 cents with 10 loads traded. Business is being done without a lot of fanfare. Prices seem to be moving in a sideways pattern. Demand is good but there is some concern over higher prices having an impact on overall demand as time moves forward. Food prices in general are increasing, which will affect what consumers will purchase.

BUTTER

For the week, butter increased 0.75 cent with nine loads traded. Grade A nonfat dry milk price remained unchanged with eight loads traded. Churning remains active with sufficient cream supply for production. Ice cream production is increasing, utilizing more cream, but there remains sufficient supply available for demand. The increase of price over the past two days was a matter of buyers taking advantage of the low price and not a change in trend.

OUTSIDE MARKETS:

The June U.S. Dollar Index is trading down 0.719 at 102.940. June gold is up $20.50 at $1,911.80, July silver is down $0.12 at $23.07 and July copper is down $0.0235 at $4.4100. June crude oil declined $0.67, ending at $104.69 per barrel. The Dow fell 939 points, closing at 32,977, while the NASDAQ fell 537 points, closing at 12,335. June RBOB is down $0.0359 and June natural gas is up $0.359.