Tuesday Closing Livestock Market Update - Live Cattle Aim to Recover Some of Monday's Losses

GENERAL COMMENTS:

The live cattle market set out to recover some of the territory that Monday threw away, which helped aid the cash cattle market in its quest for higher prices. The feeder cattle market rounded out the day lower as corn prices added input pressure to the market, and the lean hog complex hated seeing lower pork cutout prices again. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.26 with a weighted average of $103.03 on 8,295 head. July corn is up 3 1/2 cents per bushel and July soybean meal is down $8.60. The Dow Jones Industrial Average is down 809.28 points.

LIVE CATTLE:

The live cattle market gathered itself after Monday's lower demise, regrouped and set out for a bit of a recovery in Tuesday's market. Not only did the board closed higher, but packers began to buy in the cash market and showed that they're still somewhat short bought. June live cattle closed $0.82 higher at $136.25, August live cattle closed $0.95 higher at $138.27 and October live cattle closed $0.52 higher at $144.60. Southern cattle traded for $140 (full steady), and the North saw cattle sell for $232 dressed ($2.00 higher than last week) and $145 to $146 live (steady to $1.00 higher). Not only were regional packers stepping to the plate and buying cattle, but major packers were noted as buying aggressively in the North where supplies are extremely thin. The market expects to see more trade develop in Wednesday's market. 

Tuesday's slaughter is estimated at 125,000 head, 1,000 head more than a week ago and 4,000 head more than a year ago.

Boxed beef prices closed lower: choice down $2.43 ($264.17) and select down $0.29 ($256.23) with a movement of 183 loads (112.55 loads of choice, 24.75 loads of select, 9.33 loads of trim and 36.01 loads of ground beef).

WEDNEDSAY'S CASH CATTLE CALL: Steady with the week's trend. Given that cattle have sold in both regions, it's likely that prices hold steady. The South seems pretty committed to $140, but there is the potential that cattle trade slightly higher in the North where packers are having to work hard to get enough cattle bought.

FEEDER CATTLE:

The feeder cattle market closed lower as the corn market pushed through the day and ended up closing $0.03 to $0.08 higher in its nearby contracts which solidified feeders' lower demise. May feeders closed $0.57 lower at $160.72, August feeders closed $1.35 lower at $173.15 and September feeders closed $1.37 lower at $176.22. It is promising that the live cattle market closed higher and that packers are again pursuing the cash market with aggressive acquisition. If the live cattle market continues to trade this way, feeders may be able to piggyback off their rally and trade slightly higher if corn doesn't pose much more pressure. At Callaway Livestock Center in Kingdom City, Missouri, compared to last week on a run of 2,576 head, the best test was on 400- to 600-pound steer calves that traded $5.00 higher. Feeder heifers weighing 400 to 600 pounds traded mostly steady. The sale noted that overall quality was very good and that many new crop calves are starting to be sold and some unweaned/short weaned less than 30 days but are still selling with good interest. The CME Feeder Cattle Index for April 25: down $0.40, $156.12.

LEAN HOGS:

Packers wanted to buy enough hogs to fill in their gaps, which helped the cash hog market close $3.26 higher, but the board traipsed lower all throughout the day. June lean hogs closed $2.85 lower at $111.17, July lean hogs closed $2.27 lower at $113.60 and August lean hogs closed $2.17 lower at $112.52. The pork cutouts closed disappointing, but not unexpectedly, as consumers continue to show vague interest in the pork market. Nevertheless, the lower waning downward tone that's covered the market like a wet blanket is likely to stay for the time being. Pork cutouts totaled 340.58 loads with 312.78 loads of pork cuts and 27.80 loads of trim. Pork cutout values: down $0.24, $105.55. Tuesday's slaughter is estimated at 480,000 head, 1,000 head more than a week ago and 5,000 head less than a year ago. The CME Lean Hog Index for April 22: up $0.83, $102.50.

WEDNESDAY'S CASH HOG CALL: Steady. It's likely that we'll see packers aggressive at least one more day this week. Even though pork cutouts are trending lower, packers will still need to stay active in the cash market simply because supplies of market ready hogs are thin.