GENERAL COMMENTS:
Thus far, Thursday's marketplace has been another tough environment for the livestock complex as outside banking pressures continue to loom making it nearly impossible for the contracts to trade higher. No new cash cattle trade has developed at this point, and essentially its looking like the week's trade is all but done with. July corn is up 1/2 cent per bushel and July soybean meal is down $3.80. The Dow Jones Industrial Average is down 371.25 points.
LIVE CATTLE:
It's been another pressuring day for the live cattle complex as traders simply aren't receiving the support nor reassurance they need in order to trade the contracts higher. The cash cattle market hasn't seen any more trade develop, and essentially it's looking like the week's trade is all but done with. The spot June contract continues to hover above the market's 40-day moving average, which at this point seems to be a support plane in which traders are respecting. June live cattle are down $0.15 at $161.50, August live cattle are down $0.12 at $159.42 and October live cattle are down $0.20 at $163.80.
Beef net sales of 20,100 mt for 2023 were up noticeably from the previous week and up 59% from the prior four-week average. The three largest buyers were Japan (4,700 mt), South Korea (3,600 mt) and China (3,400 mt).
Boxed beef prices are higher: choice up $0.13 ($309.22) and select up $1.73 ($288.85) with a movement of 65 loads (48.01 loads of choice, 7.43 loads of select, 2.70 loads of trim and 6.46 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading lower as the market longs for support from the live cattle/cash cattle market but continues to be neglected of that need. It's not helping that outside pressures are making it nearly impossible for any of the livestock contracts to trade higher, but at this point, there's a very slim chance of feeders closing higher as pressure remains a limiting factor for the market. August feeders are down $0.80 at $222.72, September feeders are down $0.70 at $226.05 and October feeders are down $0.62 at $227.90.
LEAN HOGS:
The lean hog complex isn't untouchable and, with the added outside pressure looming over the livestock complex, even the lean hog contracts are trading lower. It was encouraging to see a rather supportive export report Thursday morning, however, which continues to be a vital component of the market's success. Pork cutout values are slightly higher at midday, which all are hoping that trickles into the day's afternoon close as well. June lean hogs are down $0.90 at $87.10, July lean hogs are down $1.02 at $88.30 and August lean hogs are down $1.00 at $89.50.
Pork net sales of 49,000 mt for 2023 were down 9% from the previous week but up 15% from the prior four-week average. The three primary buyers were Mexico (14,600 mt), China (14,200 mt) and South Korea (7,700 mt).
The projected lean hog index for May 3 is up $0.46 at $74.24, and the actual index for May 2 is up $0.76 at $73.78. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.02 with a weighted average of $72.08, ranging from $69.00 to $77.00 on 4,575 head and a five-day rolling average of $71.54. Pork cutouts total 172.52 loads with 149.02 loads of pork cuts and 23.50 loads of trim. Pork cutout values: up $0.37, $80.44.
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