Tuesday Closing Livestock Market Update - Contracts Close With Losses Throughout

GENERAL COMMENTS:

The livestock complex wasn't given any freebies Tuesday, and when looking at what Wednesday may bring, the market could be pressured with even more pushback later in the week. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.38 with a weighted average of $99.49 on 4,544 head. May corn is up 9 1/4 cents per bushel and May soybean meal is up $10.80. The Dow Jones Industrial Average is down 156.40 points and NASDAQ is down 258.86 points.

LIVE CATTLE:

It was a disappointing day as the live cattle futures closed lower and the cash market continued to see trade at steady money. The battle feedlots are up against right now is a matter of price or currentness. Some feedlots deem being current the biggest priority as they know a wall of cattle is going to hit the market in May with calf-fed fats being ahead of schedule thanks to a mild winter. Other feedlots argue that prices are the biggest matter of importance as the summer will only pressure the market to scale even lower. One side of the argument isn't more relevant than the other, it's just too bad that given where the market sits in regard to timing that both can't be obtained. April live cattle closed $1.20 lower at $136.80, June live cattle closed $1.60 lower at $133.32 and August live cattle closed $1.55 lower at $134.65. Some additional cash cattle trade developed in the North at $222, which is steady with both Monday and last week. The South saw bids of $138 offered, but Southern feedlots didn't bite at the bait. More trade will develop ahead of the week's end, the biggest question is whether or not feedlots will see any better bids ahead of Friday's close. With packers strategically managing their inventory, it's not looking too positive for feedlots given that cattle have already traded in both the North and the South this week. Some asking prices remain firm at $140 in the South and $224-plus in the North.

Tuesday's slaughter is estimated at 125,000 head -- steady with a week ago and 5,000 head more than a year ago.

Boxed beef prices closed higher: choice up $3.49 ($271.53) and select up $1.20 ($262.90) with a movement of 123 loads (82.85 loads of choice, 11.54 loads of select, 17.76 loads of trim and 11.03 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL: STEADY. Given that feedlots have seen cattle trade in both regions already this week, with the board trading lower it's most likely prices hold steady with the week's trend.

FEEDER CATTLE:

With grain prices rallying through the day, the feeder cattle contracts were plagued with one outcome -- lower closes, lower prices. April feeder cattle closed $2.25 lower at $156.12, May feeders closed $3.47 lower at $159.00 and August feeders closed $2.72 lower at $171.37. Unforunatley with the cash cattle market picking up more and more steady trade, it's unlikely the live cattle complex will lend much support in helping the feeder cattle contracts from falling lower. With drought continuing to be an issue, the market will continue to look for any moisture that may fall, along with keeping track of grain prices and any movement in the cash cattle market through the end of the week. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week on a run of 8,181 head , feeder steers and heifers traded steady to $3.00 lower. Steer and heifer calves traded $6.00 to $10.00 lower. The CME Feeder Cattle Index 4/4/2022: down $0.39, $155.76.

LEAN HOGS:

The lean hog market's weakness only grew more and more problematic as the day traded on and the pressure grew harder to bear. April lean hogs closed $1.77 lower at $97.67, June lean hogs closed $1.80 lower at $114.35 and July lean hogs closed $1.47 lower at $114.97. With both cash prices and pork cutout values traipsing lower through Tuesday's close, it's likely that Wednesday's market is deemed lower from a lack of support. Pork cutouts totaled 259.66 loads with 233.80 loads of pork cuts and 25.86 loads of trim. Pork cutout values: down $2.75, $103.60. Tuesday's slaughter is estimated at 480,000 head -- 1,000 head more than a week and year ago. The CME Lean Hog Index 4/1/2022: down $0.22, $102.41.

WENDESDAY'S CASH HOG CALL: Lower. Given that packers were able to buy a considerable sum of hogs in Tuesday's trade at lower money, and that pork cutout values closed lower, it's likely Wednesday's market sees pressure from packers again.