GENERAL COMMENTS:
It was a quiet and sluggish day throughout the livestock complex as the futures contracts closed mostly lower and as only a sparse handful of cattle were traded in the South. More trade will need to develop on Thursday, especially in the North. Hog prices closed higher on the Daily Direct Afternoon hog report, up $3.53 with a weighted average of $77.12 on 17,372 hogs. July corn closed up 9 1/4 at $5.94 and July soybean meal closed up $0.50 at $419.5. The Dow Jones Industrial Average is down 30.48 at 33,531.33.
LIVE CATTLE:
The live cattle complex closed lower as traders weren't seeing the support they needed in order to justify trading higher. It didn't help matters that some light cash cattle trade started to develop in the South at $170, which is $2.00 lower than last week's weighted average. No trade has been reported in the North, but bids of $177 live and $275 dressed were offered. June live cattle closed $0.93 lower at $163.00, August live cattle closed $0.38 lower at $161.175 and October live cattle closed $0.33 lower at $165.00.
Wednesday's slaughter is estimated at 126,000 head, steady with a week ago and 4,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.51 ($306.87) and select down $0.35 ($284.54) with a movement of 138.13 loads (80.88 loads of choice, 36.21 loads of select, 6.96 loads of trim and 14.08 loads of ground beef).
THURSDAY'S CATTLE CALL: Lower. With lower prices already being reported in parts of the South, the market will likely trade lower collectively this week.
FEEDER CATTLE:
It was a disappointing day for the feeder cattle complex as the contracts gave back most of what Tuesday's market accomplished. Between the pressure of corn prices rising $0.03 to $0.09, and the live cattle market lending merely no support, feeders had little hope in trading higher throughout Wednesday's market. May feeders closed $0.55 lower at $205.375, August feeders closed $0.98 lower at $225.15 and September feeders closed $1.28 lower at $228.375. At Winter Livestock Auction in Dodge City, Kansas, compared to last week, feeder steers weighing 600 to 950 pounds sold steady. Feeder heifers weighing 750 to 950 pounds sold $3.00 to $6.00 higher. Heifers weighing 500 to 750 pounds sold steady to $2.00 lower. Demand was moderate. Slaughter cows sold steady, but slaughter bulls sold steady to $2.00 higher. Feeder cattle supply over 600 pounds was 68%. The CME Feeder Cattle Index for May 9: up $0.03, $199.45.
LEAN HOGS:
Wednesday's market was a swing and a miss for the lean hog complex as both the futures complex and pork cutout values closed lower, but the cash market did champion the day as it closed over $3.00 higher. The lack of support for the lean hog complex was a theme seen all throughout the livestock market in Wednesday's trading hours, but it surely didn't help trader's morale that pork cutout values are lower. June lean hogs closed $0.22 lower at $84.17, July lean hogs closed $0.52 lower at $85.97 and August lean hogs closed $0.12 lower at $87.15. Pork Cutouts totaled 357.11 loads with 301.43 loads of pork cuts and 55.68 loads of trim. Pork cutout values are down $0.35 at $81.74. Wednesday's slaughter is estimated at 465,000 head, 2,000 head less than a week ago and 10,000 head less than a year ago. The CME Lean Hog Index for May 8: up $0.22, $74.64.
THURSDAY'S HOG CALL: Steady to somewhat lower. With packers having aggressively bought hogs Wednesday, it's unlikely that they're active again in the cash market on Thursday.
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