GENERAL COMMENTS:
It wasn't the day that the live cattle complex had hoped for, but the feeder cattle and lean hog contracts rounded out the day mostly higher. Heading into Friday's market, the cattle complex will be closely watching the corn market. Hog prices closed lower on the Daily Direct Hog Report, down $2.16 with a weighted average of $102.57 on 5,265 head. July corn is up 1 1/4 cents per bushel and July soybean meal is down $10.90. The Dow Jones Industrial Average is up 614.46 points.
LIVE CATTLE:
It was a day of tough love for the live cattle contracts as traders gave the market no attention and let the contracts drift lower through closing. June live cattle closed $1.12 lower at $133.90, August live cattle closed $0.67 lower at $136.35 and October live cattle closed $0.35 lower at $143.05. With the board's technical down pressure and with the cash cattle market having already seen most of the week's business done with, Thursday came and went without much excitement. Throughout the week, live cattle have traded for mostly $140 (steady with last week's market) and Norther dressed trade has averaged $232 ($2.00 higher than last week's business). Thursday's slaughter is estimated at 123,000 head, 1,000 head more than a week ago and 2,000 head more than a year ago.
Beef net sales of 11,400 mt for 2022 were down 24% from the previous week and 34% from the prior four-week average. The three largest buyers were Japan (4,100 mt), China (1,500 mt) and South Korea (1,300 mt).
Thursday's actual slaughter data shared that compared to last week's data, steers fell 3 pounds to average 909 pounds and heifers fell 5 pounds to average 835 pounds.
Boxed beef prices closed mixed: choice up $0.69 ($262.60) and select down $1.26 ($251.06) with a movement of 168 loads (111.44 loads of choice, 27.95 loads of select, 11.30 loads of trim and 16.98 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady with the week. Given that the week's trend has already been set, any clean-up trade will likely remain steady with the week.
FEEDER CATTLE:
The feeder cattle contracts found some support in Thursday's market after Wednesday's steep drop. Thankfully, the market found support, which came not only technically, but also from the help of active buying in the countryside. Sales remain thin as yearlings have mostly worked their way through the sales already and it's too early for most spring born calves. May feeders closed $0.60 higher at $157.95, August feeders closed $1.45 higher at $170.40 and September feeders closed $0.92 higher at $173.40. Heading into Friday's market, the feeder cattle contracts will be eyeing the corn market to see if it trades higher again, which could keep feeders chopping sideways instead of trying to regain what was lost earlier in the week. The CME Feeder Cattle Index for April 27: up $0.15, $156.36.
LEAN HOGS:
The lean hog complex changed its tone as the day went on and complex walked out of the day fully higher. June lean hogs closed $0.62 higher at $110.97, July lean hogs closed $1.45 higher at $114.60 and August lean hogs closed $1.35 higher at $113.72. Pork cutout values and the cash hog market weren't the reason for the board's higher close as both markets saw a lower conclusion themselves. It wasn't surprising to see cash hog prices wane lower come Thursday as packers had been aggressive earlier in the week pork cutout values have been under pressure consistently. June's close of $110.97 is the lowest the market has traded since the middle of February. Pork cutouts total 248.12 loads with 224.50 loads of pork cuts and 23.62 loads of trim. Pork cutout values: down $1.02, $104.49. Thursday's slaughter is estimated at 476,000 head, 6,000 head less than a week ago and 5,000 head less than a year ago. The CME Lean Hog Index for April 26: down $0.55, $102.34.
Thursday's actual slaughter data shared that compared to last week live hog weights averaged 292 (down 2 pounds from the previous week) and dressed hog weights averaged 218 pounds (down 1 pound from the week before).
Pork net sales of 31,500 mt for 2022 were up noticeably from the previous week and up 19% from the prior four-week average. The three largest buyers were Mexico (21,600 mt), Japan (3,600 mt) and Canada (2,100 mt).
FRIDAY'S CASH HOG CALL: Lower. With packers not showing much interest in Thursday's market, it's likely that Friday follows suit and that the cash market trades steady to somewhat lower.
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