GENERAL COMMENTS:
It was a strong day for the livestock complex, as the live cattle, feeder cattle and lean hog contracts all closed higher. Heading into Tuesday's trade, the market is hopeful that pork cutouts continue to see strong interest and that the live cattle contracts keep with their strong pace so that, hopefully, the cash cattle market can be supported in acquiring higher prices this week. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.03 with a weighted average of $97.70 on 4,661 head. May corn is down 4 1/4 cents per bushel, and May soybean meal is down $9.10. The Dow Jones Industrial Average is down 413.04 points.
LIVE CATTLE:
The old saying "The cattle market loves a good snowstorm" couldn't have been more true for Monday's market. April live cattle closed $0.70 higher at $138.52, June live cattle closed $0.97 stronger at $134.80, and August live cattle closed $0.77 higher at $136.62. Feedlots are hopeful that the futures market will continue with this upward push and eventually help cash cattle trade higher later this week. New showlists appear to be mixed, higher in Texas and Kansas but lower in Nebraska/Colorado. Packers were able to get more cattle bought with time last week, and given that they already have cattle committed for this time frame, it's unlikely they'll seek out cash cattle with much aggressiveness.
Monday's slaughter is estimated at 124,000 head -- 3,000 head more than a week ago and 11,000 head more than a year ago. Saturday's slaughter was revised to 56,000 head.
Last week's negotiated cash cattle trade totaled 96,940 head. Of that, 74% (71,756 head) were committed for nearby delivery, while the remaining 26% (24,884 head) were committed for deferred delivery.
Boxed beef prices closed mixed: choice up $1.64 ($272.11) and select down $0.04 ($260.29) with a movement of 82 loads (42.21 loads of choice, 20.20 loads of select, 9.77 loads of trim and 9.96 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. Given that packers already have cattle committed for this time, it's unlikely that the cash market sees much support.
FEEDER CATTLE:
The nearby corn contracts closed slightly weaker, and with the live cattle contracts' upward ascension, the feeder cattle contracts found support and rounded out Monday's trade higher. May feeders closed $0.52 higher at $159.90, August feeders closed $0.25 lower at $173.30 and September feeders closed $0.07 higher at $177.12. Cattle sales and transportation could become difficult this week in the North as eastern Montana all the way to the Great Lakes is expected to get moisture and wind. And while the snow and wind come at a difficult time for cow-calf producers who are calving, the cattle market is loving the notion of getting some good moisture, and cattlemen are equally ecstatic as drought continues to plague much of the U.S. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, at their midsession point, compared to last week, on a run of 7,700 head, feeder steers traded $2 to $5 lower, and feeder heifers traded $2 to $4 lower. Steer and heifer calves traded $4 to $7 lower. The CME feeder cattle index 4/8/2022: down $0.14, $155.67.
LEAN HOGS:
It was a successful Monday for the lean hog complex as the futures contracts closed higher, and the pork cutouts closed over $3 stronger. June lean hogs closed $0.45 higher at $115.02, July lean hogs closed $0.50 higher at $116.40 and August lean hogs closed $0.60 higher at $115.40. Pork cutouts saw mild price jumps in most of the cuts (besides the loin, which fell $0.94, $100.70) but the belly took the day's show with a $9.51 jump to average $190.15. With Lent being done this Thursday, retailers are expecting to see ample pork demand throughout the week as customers prep for Easter and restock their own personal freezers. Pork cutouts totaled 253.91 loads with 229.84 loads of pork cuts and 24.07 loads of trim. Pork cutout values: up $3.48, $106.64. Monday's slaughter is estimated at 475,000 head -- 2,000 head less than a week ago and 9,000 head less than a year ago. Friday's hog slaughter was revied to 455,000. The CME lean hog index 4/7/2022: down $0.62, $100.06.
TUESDAY'S CASH HOG CALL: Higher. Given that packers only dabbled mildly in Monday's cash hog market, it wouldn't be surprising to see them more aggressive in Tuesday's market, especially when Monday's hogs prices closed over $3 stronger.
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