GENERAL COMMENTS
Both the live cattle and feeder cattle contracts traded higher throughout Wednesday's market as the contracts continue to be fanned higher by tremendous market fundamentals. Meanwhile, the lean hog complex attempted to trade higher, but by the day's end, traders ran out of support and closed the hog contracts lower.
LIVE CATTLE:
It was another day of upward momentum for the live cattle complex as traders again drove the live cattle contracts to new contract highs. As the market continues to grind higher, traders continue to lean on the bullish market fundamentals (strong cash trade, excellent beef demand, and tight supplies) for direction and are receiving all the support they need. April live cattle closed $1.97 higher at $174.27, June live cattle closed $0.90 higher at $164.85 and August live cattle closed $0.72 higher at $163.97. The cash cattle market was mostly quiet with bids becoming available in the North, but feedlots looked the other way as the bids offered were below current asking prices. Asking prices in the South are noted at $174 to $177, and in the North at $286-plus. Cattle will likely begin to trade on Thursday, and prices are expected to be higher. Wednesday's slaughter is estimated at 125,000 head, 2,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed mixed: choice up $3.38 ($298.48) and select down $0.23 ($281.81) with a movement of 104 loads (70.44 loads of choice, 19.58 loads of select, zero loads of trim and 14.13 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. Cash cattle prices will likely be higher again this week as feedlots see that packers are close to the knife and need more cattle to fulfill upcoming boxed beef orders.
FEEDER CATTLE:
The feeder cattle contracts ran to new contract highs yet again as the market continues to be fueled by incredibly strong fundamentals. From the incredible demand that buyers continue to show at sale barns to the ample support that the live cattle and cash cattle markets are extending, the feeder cattle complex is charged and ready for this bullish run. April feeders closed $0.12 higher at $202.22, May feeders closed $0.75 higher at $208.57 and August feeders closed $1.40 at $225.75. At Ozarks Regional Stockyards in West Plains, Missouri, compared to last week, steer and heifer claves traded $6.00 to $12.00 higher, with instances of $16.00 higher. Yearling steers and heifers sold $4.00 to $6.00 higher. Feeder cattle supply over 600 pounds was 34%. The CME Feeder Cattle Index for April 11: up $0.23, $193.24.
LEAN HOGS:
The lean hog complex attempted to trade higher, but by the day's end, the market lost its momentum and closed lower. June lean hogs closed $0.30 lower at $87.55, July lean hogs closed $0.47 lower at $90.27 and August lean hogs closed $0.47 lower at $91.27. Pork cutout values closed lower, which was largely driven down by a $9.00 drop in belly prices and a $6.10 drop in the rib. On Thursday, hog enthusiasts will be quick to seek out Thursday's export data as the hog complex desperately needs some demand. Pork cutouts totaled 305.50 loads with 256.90 loads of pork cuts and 48.60 loads of trim. Pork cutout values: down $1.44, $76.02. Wednesday's slaughter is estimated at 476,000 head, 1,000 head less than a week ago and steady with a year ago. The CME Lean Hog Index for April 10: down $0.12, $72.52.
THURSDAY'S HOG CALL: Lower. As packers continue to see little in pork demand, they're not likely to overly support the cash complex when supplies are ample.
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