GENERAL COMMENTS:
The livestock complex is a mixed environment heading into Wednesday's afternoon as the lean hog contracts have shot sharply higher, but the cattle complex is trending mostly lower. No cash cattle trade has developed at this point, and no bids are currently being offered. May corn is up 1 1/4 cents per bushel and July soybean meal is down $3.70. The Dow Jones Industrial Average is down 87.78 points.
LIVE CATTLE:
The live cattle contracts are chopping sideways, seeming somewhat confused by the midday boxed beef report that posted softer prices. More likely than not, Wednesday's hesitant nature throughout the futures complex comes as traders are growing impatient on waiting for the cash cattle market to trade. But just like feedlot managers sometimes need reminding, traders often need reminded too that the longer feedlots hold out and make packers sweat over how many cattle they'll get bought in the week, the higher prices usually are. April live cattle are down $0.82 at $175.65, June live cattle are down $1.05 at $164.15 and August live cattle are down $1.00 at $163.05. The cash cattle market hasn't seen any action develop yet as no bids are on the table. Early asking prices in the South are noted at $177 plus, but remain unknown in the North. Trade will likely be delayed until Thursday sometime.
The Fed Cattle Exchange Auction held today reported 7 lots in Texas, totaling 985 head of cattle. None of which sold or were even bid on.
Opening prices were at $173, with reserve prices of $176.50 to $177.
Boxed beef prices are lower: choice down $1.12 ($305.94) and select down $0.42 ($291.19) with a movement of 45 loads (30.51 loads of choice, 8.26 loads of select, zero loads of trim and 6.56 loads of ground beef).
FEEDER CATTLE:
It's a mixed day for the feeder cattle complex as it's closest nearby and furthest deferred contracts face mild pushback, while the late summer/early fall months of 2023 continue to charge higher. May feeders are down $0.92 at $210.57, August feeders are up $0.97 at $227.07 and September are up $0.42 at $229.75. The nearby contracts could be struggle as the live cattle market is now trading lower, but the corn complex isn't posing any threat so most would assume that traders could look past the live cattle market's weakness until cash cattle trade, but that obviously isn't the case Wednesday.
LEAN HOGS:
The back-and-forth nature of the lean hog complex continues as the market is charging sharply higher into Wednesday's noon hour. June lean hogs are up $1.70 at $87.45, July lean hogs are up $1.30 at $90.07 and August lean hogs are up $1.15 at $91.02. Midday pork cutout values are up, with steady gains noted across all the cuts, which hopefully carries into the day's afternoon report.
The projected lean hog index for April 18 is down $0.07 at $71.57, and the actual index for April 17 is up $0.12 at $71.64. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.70 with a weighted average of $67.24, ranging from $62.00 to $69.00 on 7,492 head and a five-day rolling average of $68.03. Pork cutouts total 182.50 loads with 133.44 loads of pork cuts and 49.06 loads of trim. Pork cutout values: up $1.12, $80.05.
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