GENERAL
COMMENTS: Limited trade activity was seen in livestock markets Friday
following the sharp triple-digit losses seen early in the week. Futures
remained mixed through most of the session as traders took advantage of
the limited volume. From Friday to Friday, livestock futures scored the
following changes: Jun live cattle down $0.33; May feeder cattle up
$0.40; Aug feeder cattle down $0.40; Jun lean hogs down $1.03; Jun lean
hogs down $1.03. Cash cattle trade remained quiet Friday following trade
in the South on Wednesday and North through the day Thursday. Although
totals are not fully available, overall trade is expected to have been
moderate to fairly active by the end of the week. Prices in the South
were seen mostly $126 to $127 with prices steady to $1 higher. Northern
trade were seen at $127 live and $204 to $205 dressed. This was $3 to $4
per cwt lower than week-ago levels. The National Daily Direct afternoon
hog report was $1.33 lower ($72-$84, weighted average of $79.62) on
4,985 head sold. Corn futures were higher in light trade with July up 4
cents per bushel. The Dow Jones Index was 38 points higher with Nasdaq
up 16 points.
LIVE CATTLE: Live cattle futures stabilized
Friday, closing $0.47 lower to $0.50 higher. Futures moved back and
forth in a narrow-to-moderate range throughout the day. April gained 50
cents per cwt in limited trade. Other contracts were down 27 to 47 cents
per cwt as early buyer support was unable to hold through the end of
the week. Traders' efforts to cover short positions failed to spark
buying late in the session, resulting in uncertainty about market moves
next week. Beef cut-outs: mixed, $0.17 lower (select, $219.58) to up
$0.21 (choice, $233.14) with light-to-moderate demand and offerings, 89
loads (52 loads of choice cuts, 21 loads of select cuts, no load of
trimmings, 16 loads of coarse grinds).
MONDAY'S CASH CATTLE CALL: Interest is expected
to remain sluggish early in the week with showlist distribution and
inventory-taking the priorities Monday. Bids and asking prices are not
likely until midweek or later.
FEEDER CATTLE: Feeder cattle futures closed
mixed, $0.47 lower to $0.40 higher. The limited buying activity that
moved through cattle trade and the feeder cattle complex Friday had a
bigger impact than actual price moves, as traders seemed to willingly
break away from the sharp downward market shift seen during the week.
Although volume was sluggish Friday, increased buyer activity could be
seen early next week. However, prices are likely to hold within the
lower end of the trading range. CME cash feeder index for 4/26 is
$144.24, down $0.72.
LEAN HOGS: Firm pressure in the lean hog trade
Friday added to an already weak market structure. Futures settled mixed,
$1.45 lower to $0.37 higher. Mixed trade was seen during the session
with nearby contracts slowly eroding throughout the day. This added
pressure to the market, which has fallen over $10 per cwt in the last
two weeks. Even though long-term support is expected, the lack of
certainty on a China trade deal and future pork purchases by China looms
over the market. Prices have pulled away from previous gains, but the
market still remains nearly $15 per cwt over levels before China started
buying U.S. pork in early March. Pork cutouts posted limited gains as
primal cuts remained volatile, posting triple-digit shifts in either
direction Friday. Pork cutout values added $0.55 per cwt, moving to
$84.27 per cwt on 329 loads. CME cash lean index for 4/25 is $83.40, up
$0.61. DTN Projected lean index for 4/26: $83.73, up $0.33.
MONDAY'S CASH HOG CALL: $1 lower to $1 higher.
Limited direction is expected through cash hog trade early in the week
with packers continuing to focus on finding market-ready hogs. Most bids
are expected to remain steady to weak following the recent softness in
futures trade. Monday slaughter is expected at 475,000 head.
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