GENERAL COMMENTS: Firm pressure seen in lean hog trade quickly pushed prices lower in nearby trade. This offset a midday rally that was unable to hold, causing concerns of further losses. Cattle markets remain mixed in limited activity. Corn futures are lower in light trade. May futures fell 3 1/2 cents per bushel. Dow Jones Index is 145 points higher with Nasdaq up 105 points.
CASH MARKETS: Cash cattle activity remains quiet with a few asking prices trickling into the market. Cattle are priced at $130 live and $212 dressed following the firmness last week and moves in beef values. Bids are still developed but may start to slowly move into the market Wednesday. Packers may not become fully active until later in the week. National Daily Direct afternoon hog report is $0.16 lower with a weighted average of $80.02 per cwt. Full range of $73.00 to $83.00 per cwt on 5,850 head sold.
LIVE CATTLE: Light pressure kept live cattle futures weak ($0.05 to $0.57 lower). Limited movement developed in all live cattle trade with nearby futures holding losses of 45 to 57 cent cents per cwt. Early support pushed prices higher across the complex, but buyer interest quickly faded, allowing for light to moderate pressure to redevelop. Even though markets continue to shift lower, traders are holding markets well within the sideways market trend. This could limit further activity through the entire complex, allowing for additional narrow market moves later in the week. Beef cut-outs: lower, $1.38 lower (select, $221.26) and down $0.37 (choice, $234.11) with moderate demand and heavy offerings, 116 loads (56 loads of choice cuts, 32 loads of select cuts, 18 loads of trimmings, 10 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL: Steady. Interest early Wednesday is not expected to remain significant, although packer activity may start to slowly develop through the last half of the day. Over the last few weeks light to moderate trade developed in parts of the South on Wednesday. This is creating expectations that some business may be done midweek. Asking prices are becoming more available at $130 live and $212 dressed.
FEEDER CATTLE: Mixed trade limited movement in most contracts ($1.17 lower to $0.27 higher). Sharp losses in spot month May contracts seemed to contradict the overall stability in the market. Limited activity in May futures left prices vulnerable to a wide market swing and does not represent the overall direction of market activity. Summer contracts posted single-digit gains with little activity seen through the complex. This could bring buyers back to the table over the next couple of weeks. CME cash feeder index for 4/22 is $145.84 down $0.13.
LEAN HOGS: Continued pressure developed Tuesday despite wide market swings through the day ($1.40 lower to $0.32 higher). Strong pressure developed early and late in the session with nearby futures holding triple-digit losses. The light trade volume in the complex continues to add uncertainty to the market with a midday rally seen, but unable to hold prices higher. Even though China will continue to need pork to fill the overall needed demand from African swine fever, this may not be enough to sustain current price levels long-term. The balance between strong growing domestic and export demand will continue to be a major factor in price shifts over the next couple of months. Pork cutouts continues to gain price support based on strong gains in butt and rib cuts. Pork cutout values added $1.06 per cwt, moving to $88.92 per cwt on 383 loads. CME cash lean index for 4/19 is $81.54, up $0.52. DTN Projected lean index for 4/22 $82.07, up $0.53.
WEDNESDAY'S CASH HOG CALL: Steady to $1 higher. Packers continue to search for market ready hogs in order to fill aggressive procurement schedules. Bids are expected steady to 50 cents higher in most locations. Wednesday slaughter is expected at 477,000 head. Saturday runs are expected near 189,000 head.
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