GENERAL COMMENTS:
It was an exciting day for most of the livestock complex as the vast majority of the contracts closed higher, and fundamental support was ample. The biggest excitement heading into Friday's market will be watching what the cash cattle market achieves. Hog prices closed higher on the Daily Direct Afternoon hog report, up $2.46 with a weighted average of $72.05 on 12,303 hogs. July corn closed down 19 1/2 at $5.815 and July soybean meal closed down $0.00 at $427.4. The Dow Jones Industrial Average is up 524.29 at 33,826.16.
LIVE CATTLE:
It was another strong day for the live cattle market as the futures complex closed higher, boxed beef prices closed higher and, largely, the cash cattle market is going into Friday's trade untested. I absolutely applaud the feedlot managers who are willing to work the market and procure higher prices for their cattle, even if it means waiting until Friday to see any substantial trade develop. Well done cattlemen, well done! A few bids were offered throughout the day, but largely feedlots let them go unanswered as they want more money for their cattle. A light movement of cattle was reported in the North at $283 to $285, which is $3.00 to $5.00 lower than last week's weighted average, but that was on a small sampling. The South has yet to trade any cattle. April live cattle closed $0.93 higher at $175.45, June live cattle closed $0.63 higher at $165.2 and August live cattle closed $0.45 higher at $163.85.
Thursday's slaughter is estimated at 122,000 head, 6,000 head less than a week ago and 1,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.83 ($311.07) and select up $1.15 ($289.09) with a movement of 91.84 loads (57.93 loads of choice, 20.51 loads of select, 5.46 loads of trim and 7.94 loads of ground beef).
Beef net sales of 9,500 mt for 2023 were down 50% from the previous week and 28% from the prior four-week average. The three primary buyers were Japan (2,400 mt), South Korea (2,200 mt) and Canada (1,600 mt).
Thursday's actual slaughter data shared that, for the week ending April 15, steers averaged 894 pounds, which is 2 pounds heavier than the previous week and 15 pounds lighter than the same week a year ago. For the same week, heifers averaged 825 pounds, which is 3 pounds less than the week before, but 10 pounds lighter than a year ago.
FRIDAY'S CATTLE CALL: Higher. Feedlots are demanding that their cattle trade higher this week. It's tough telling how much higher they'll be able to move the market, but higher prices are expected at this point.
FEEDER CATTLE:
The corn complex sank $0.14 to $0.19 lower through Thursday's end, which helped prop the feeder cattle contracts higher and allow for a day of nearly stress-free trade. The market is still anxiously awaiting the cash cattle market to trade, but it's a positive sign that feedlots are digging their heels in and not bowing down to the pressures of packers. The stronger the cash cattle market grows, the more spill over support the feeder cattle complex receives. May feeders closed $1.25 higher at $211.52, August feeders closed $0.62 higher at $231.57 and September feeders closed $0.80 stronger at $234.52. At Winter Livestock Auction in Pratt, Kansas, compared to last week and at their midsession point, feeder steers weighing 700 to 900 pounds were selling $4.00 to $5.00 higher and feeder heifers weighing 700 to 950 pounds were selling steady. Feeder cattle supply over 600 pounds was 92%. The CME Feeder Cattle Index for April 26: not available at this time.
LEAN HOGS:
It was a mostly positive day for the lean hog complex as the market received an extremely supportive export report, saw strong trade in the cash market and pork cutouts even closed higher. Some of the nearby contracts closed slightly lower, but the deferred months were able to keep their gains through the day's end. The cash hog market continues to tell us that packers were short-bought on inventory this week as Thursday marks the third day in a row that packers have supported the cash market. June lean hogs closed $0.17 lower at $90.10, July lean hogs closed $0.02 lower at $92.50 and August lean hogs closed $0.12 higher at $93.47. Pork Cutouts totaled 274.29 loads with 241.75 loads of pork cuts and 32.54 loads of trim. Pork cutout values are up $0.44 at $78.81. Thursday's slaughter is estimated at 474,000 head, 9,000 head less than a week ago and 2,000 head more than a year ago. The CME Lean Hog Index for April 25: up $0.11, $71.31.
Pork net sales of 54,000 mt for 2023 -- a marketing-year high -- were up 50% from the previous week and 47% from the prior four-week average. The three largest buyers were Mexico (32,400 mt), Japan (6,400 mt) and Canada (4,700 mt).
FRIDAY'S HOG CALL: Steady. Friday's cash hog market is a gamble. Packers could still need hogs, but then again, they could have bought all the numbers they needed Thursday.
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