GENERAL COMMENTS:
Thursday's break in rallying corn prices has lent a hand to cattle contracts, allowing them to trade modestly higher. Meanwhile, the lean hog market is fighting some technical resistance pressure, but that isn't belittling the market's strong fundamental posturing as cash prices are still strong and slaughter plants are wanting more and more hogs -- but availability is slim. July corn is up 1 1/4 cents per bushel and July soybean meal is up $3.50. The Dow Jones Industrial Average is down 29.52 points and NASDAQ is down 90.19 points.
LIVE CATTLE:
Live cattle futures are seeing advancements in nearby contracts, but the deferred contracts are still left to trade modestly lower. Even though the live cattle market isn't as directly tied to the corn market as the feeder cattle contracts are, the corn market's behavior still affects the live cattle market's performance. June live cattle are up $0.40 at $115.85, August live cattle are up $0.97 at $117.45 and October live cattle are up $0.67 at $121.72. Seeing a brisk movement of cattle through Wednesday's trade, the market will most likely see prices continue to trade in an-already-established range for the week. There's yet to be any bids renewed and asking prices in the South are posted at $120 while dressed cattle in the North are priced at $192. The market should see some more trade develop before the weekend.
Beef net sales of 23,600 metric tons (mt) reported for 2021 were down 4% from the previous week, but up 22% from the prior four-week average. The three largest buyers were South Korea (11,700 mt), Japan (4,900 mt) and Mexico (2,000 mt).
Boxed beef prices are higher: choice up $0.96 ($293.46) and select up $0.21 ($279.21) with a movement of 69 loads (43.50 loads of choice, 8.16 loads of trim, 6.88 loads of trim and 10.49 loads of ground beef).
FEEDER CATTLE:
As corn futures sink lower, feeder cattle contracts are feeling confident in trading higher but know that in a bat of an eye things could change. May feeders up $0.95 at $135.92, August feeders are up $0.92 at $149.82 and September feeders are up $0.67 at $151.57. With the April contract set to expire at Thursday's close, traders have jumped into the May and August contracts and hope by then the complex will have seen more support from a stronger cash cattle market.
LEAN HOGS:
Technical pressure at $110.00 is keeping lean hog futures lower even though the market is being fueled by continuous fundamental support. June lean hogs are down $2.12 at $107.00, July lean hogs are down $1.57 at $106.37 and August lean hogs are down $1.12 at $102.80. Keeping a close eye on China and their pork purchases, you probably found it odd they weren't one of the most aggressive buyers in last week's export pork sales. But falling fourth in line behind Mexico, Japan and South Korea, China still came to buy some product. Even though the midday cash hog report shared that the top bid sank from $118 posted on Wednesday to $117.50 Thursday, the simple fact that pork prices are this high beams a light on just how few hogs truly are available at this time.
Pork net sales of 35,600 mt reported for 2021 were down noticeably from the previous week, but up 59% from the prior four-week average. The three largest buyers were Mexico (16,700 mt), Japan (6,800 mt) and South Korea (5,000 mt).
The projected two-day CME Lean Hog Index for 4/28/2021 is down $0.12 at $106.89, and the actual index for 4/27/2021 is down $0.38 at $107.01. Hog prices are lower on the National Direct Morning Hog Report, down $1.10 with a weighted average of $108.00, ranging from $106.82 to $117.50 on 2,911 head and a five-day rolling average of $108.66. Pork cutouts total 118.56 loads with 97.38 loads of pork cuts and 21.18 loads of trim. Pork cutout values: up $4.10, $112.31.
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