GENERAL COMMENTS:
The market is enduring mass selloffs as traders seem unsure of where the nearby trajectory lays with anything. From the bearish Cattle on Feed report to the COVID concerns in China, Monday's market is terribly unsettled. July corn is up 6 1/4 cents per bushel and July soybean meal is down $4.10. The Dow Jones Industrial Average is down 245.77 points.
LIVE CATTLE:
From the news of COVID spreading in China to the bearish Cattle on Feed report that ruffled the market's feathers last Friday, the live cattle complex hasn't been greeted with much support come Monday. June live cattle are down $2.97 at $135.42, August live cattle are down $3.05 at $137.32 and October live cattle are down $2.12 at $144.02. Last week's negotiated trade was a big one at 110,597 head. Heading into this week's market, feedlots are again going to try to use their limited supplies to push the market higher again, but if the board continues to wane lower, the triumph of higher prices could be harder to attain. Showlists this week are lower in Kansas, Nebraska and Colorado but somewhat higher in Texas.
Last week's negotiated cash cattle trade totals 110,597 head. Of that 71% (78,267 head) were committed for the nearby delivery, while the remaining 29% (32,330 head) were committed for the deferred delivery.
Boxed beef prices are mixed: choice down $0.97 ($266.94) and select up $1.69 ($256.46) with a movement of 31 loads (11.64 loads of choice, 5.01 loads of select, zero loads of trim and 13.86 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are trending lower like the rest of the marketplace, as the market has no support from the live cattle sector. May feeders are down $3.02 at $160.85, August feeders are down $2.45 at $174.45 and September feeders are down $2.10 at $177.47. Not helping matters is the fact that the corn sector is trading mildly higher, which just adds to the day's lower tone. The one positive thing that's working in feeders' favor right now is the moisture that parts of the West and central Plains are accumulating -- good grass growing weather is nearing.
LEAN HOGS:
The lean hog sector is trending lower and thus far enduring stiffer blows than the cattle sector. June lean hogs are down $4.75 at $114.02, July lean hogs are down $4.67 at $115.35 and August lean hogs are down $4.02 at $114.05. The hog sector desperately needs to see widespread consumer support if the market is going to trade higher this week. Thankfully with baseball and grilling season right around the corner, hot dog demand should see some uptick as Americans head outside.
The projected lean hog index for April 22 is up $0.83 at $102.50 and the actual index for April 21 is up $0.42 at $101.67. Hog prices are lower on the Daily Direct Hog Report, down $2.63 with a weighted average of $95.60 ranging from $95.00 to $107.00 on 2,810 head and a five-day rolling average of $100.86. Pork cutouts 147.84 loads with 123.03 loads of pork cuts and 24.880 loads of trim. Pork cutout values: down $2.32, $108.96.
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