GENERAL COMMENTS:
The cattle contracts have seen a shift from their aggressive rally early in the week to now seeing the live cattle contracts trade slightly lower and the feeder cattle contracts keeping slightly above steady. Meanwhile, the lean hog contracts are now trading higher, and the pork cutout report shared a large movement of 244.64 on the morning report. July corn is down 8 1/2 cents per bushel, and July soybean meal is down $9.30. The Dow Jones Industrial Average is down 561.18 points.
LIVE CATTLE:
The live cattle complex has drawn back from its aggressive rally seen earlier in the week to trade timidly thus far Friday. The market's timid nature could be a simple pause in time as traders want to see what next week's market shakes out to be before advancing any higher, or the complex could be drawing back because of this afternoon's April 1 Cattle on Feed report. Either way, thus far, prices are simply chopping sideways at the high end of Thursday's trade, which doesn't send panicking fears throughout the market. April live cattle are down $1.10 at $143, June live cattle are down $0.72 at $139.17, and August live cattle are down $0.32 at $141.25. The cash cattle market hasn't seen any more trade develop, and it's likely that the bulk of this week's business is done.
The week's cash cattle trade developed early, as packers were short bought and desperately needed cattle. Beginning on Tuesday, Southern live cattle sold for $139 to $141, but mostly at $140, which is $1 stronger than last week. Northern dressed deal ranged from $228 to $236, but mostly at $230, which is $4 higher.
Boxed beef prices are lower: choice down $0.38 ($269.79) and select down $0.65 ($255.03) with a movement of 56 loads (35.68 loads of choice, 7.18 loads of select, 5.82 loads of trim and 7.34 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are clinging to whatever support they can find in Friday's market, and largely, other than in the April and May 2022 contracts, the complex is still trading higher. Thankfully for feeder's sake, the corn market isn't posing any pressures today as it trades lower, but the live cattle market has seemed to exhaust its run, and without the live cattle contracts trading higher, feeders are left to fend through Friday's trade on their own. April feeders are down $0.05 at $158.40, May feeders are down $0.60 at $164.25, and August feeders are up $1.50 at $177.95.
LEAN HOGS:
It's been a perplexing week for the lean hog complex. Early in the week, the complex shot higher only to be sent back lower later in the week. Pork cutout values have seen hit-or-miss demand, but in looking at Friday's morning report -- 244.64 loads is a BIG DEAL! Nevertheless, it's safe to say that there's a lingering tone of the unknown throughout the hog complex. The sector is trading higher in its nearby contracts, but slightly lower in its deferred months heading into Friday afternoon. The front months are most likely trading with confidence because even though pork cutout values are dancing back and forth as of late, the market is still high compared to historical industry standards. June lean hog are up $1.40 at $118.55, July lean hogs are up $1.25 at $119.87 and August lean hogs are up $).97 at $118.
The projected lean hog index for 4/21/2022 is up $0.42 at $101.67, and the actual index for 4/20/2022 is up $0.32 at $101.25. Hog prices are lower on the Daily Direct Hog Report, down $7.18 with a weighted average of $98.23, ranging from $95 to $105 on 2,840 head and a five-day rolling average of $100.70. Pork cutouts total 244.64 loads with 228.66 loads of pork cuts and 15.98 loads of trim. Pork cutout values: up $2, $112.20.
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