GENERAL COMMENTS:
It was a heavy, burdensome day for the cattle complex as the onset of cheaper cash cattle trade sent the contracts plummeting. Meanwhile the lean hog complex had a stellar day as the contracts were able to close slightly higher, but more importantly cash prices and pork cutout values closed higher. Hog prices closed higher on the Daily Direct Afternoon hog report, up $1.04 with a weighted average of $73.89 on 13,851 hogs. July corn closed down 4 1/2 at $5.8 and July soybean meal closed down $5.70 at $427.9. The Dow Jones Industrial Average is down 367.17 at 33,684.53.
LIVE CATTLE:
It was a brutal day for the live cattle complex. Not because prices necessarily crashed lower anywhere, but because the market's heaviness grew throughout the day. Cash cattle began to trade on a Tuesday at weaker prices, the futures market closed lower and boxed beef prices closed lower too. It seems as though it was only one thing after another for the live cattle market and the complex couldn't get ahead of the runaway train that was hellbent on sending the market lower. Around the noon hour, a light movement in the South was noted at $172, which is $1.00 lower than last week's weighted average, and shortly there after Northern dressed cattle began to trade for $281, which is $3.00 lower than last week's weighted average. The week's movement thus far has been thin, but prices are surely lower and it's unlikely that feedlots will be able to do much better later in the week as cattle have already begun to trade lower. June live cattle closed $1.98 lower at $162.9, August live cattle closed $1.70 lower at $160.95 and October live cattle closed $1.70 lower at $165.3.
Tuesday's slaughter is estimated at 127,000 head, 1,000 head less than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed mixed: choice down $0.78 ($309.24) and select down $2.34 ($288.66) with a movement of 125.23 loads (87.34 loads of choice, 19.05 loads of select, 9.43 loads of trim and 9.41 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady with the week's trend. I'm hopeful that prices won't fall any lower, but I'm not convinced that feedlots stand a chance at trading cattle higher later this week given that some feedlots have already sold the cash cattle market out and let prices drift lower yet again.
FEEDER CATTLE:
The feeder cattle complex stood no chance at closing higher in Tuesday's market as the lack of support from the live cattle/cash cattle markets was simply unsettling. Yes, feeder cattle prices are continuing to trade steady/somewhat higher in the countryside as demand for calves and feeders is not easing, but the onset of weaker cash cattle trade on a Tuesday was disturbing. May feeders closed $3.75 lower at $205.95, August feeders closed $3.93 lower at $226.175 and September feeders closed $3.80 lower at $229.275. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded steady to $4.00 higher, and stocker steers traded up to $8.00 higher. Feeder heifers sold $2.00 to $4.00 stronger. Steer calves sold $4.00 to $9.00 higher, with instances of $11.00 higher. Heifer calves sold $2.00 to $3.00 higher except heifers weighing over 500 pounds which sold $1.00 to $4.00 lower. Feeder cattle supply over 600 pounds was 64%. The CME Feeder Cattle Index for May 1: up $1.01, $202.82.
LEAN HOGS:
On a day when all the other markets seem to be losing traction, the lean hog complex again pointed its ship North and headed to higher prices. With the added support of stronger cash sales and higher pork cutout prices, traders allowed for most of the contracts to close higher, although a few of the summer 2023 contracts closed mildly lower. June lean hogs closed $0.25 higher at $89.95, July lean hogs closed $0.12 higher at $91.42 and August lean hogs closed $0.15 lower at $92.50. It was interesting note the gains in the pork cutout values as most of the cuts saw substantial increases with the ham jumping $6.11, the rib increasing by $3.02 and the butt gained $2.93, all of which helped offset the $3.66 decrease in the belly. Tuesday's slaughter is estimated at 459,000 head, 11,000 head less than a week ago and 22,000 head less than a year ago. Monday's hog slaughter was revised to 449,000 head. Pork Cutouts totaled 315.99 loads with 277.03 loads of pork cuts and 38.96 loads of trim. Pork cutout values are up $1.61 at $82.08. The CME Lean Hog Index for April 28: up $0.61, $72.10.
WEDNESDAY'S HOG CALL: Steady. Given that packers showed Tuesday afternoon's cash hog market substantial interest, they still could be short bought and in need of more hogs.
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