GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts are being considerably pressured throughout Wednesday's market as traders aren't willing to support the contracts and advance them any higher without the cash market's aid. Even though the lean hog contracts are trading slightly lower, the market's fundamentals remain supportive and could lend enough aid to allow Thursday's market to trade higher. July corn is up 5 1/2 cents per bushel and July soybean meal is down $4.20. The Dow Jones Industrial Average is down 27.45 points.
LIVE CATTLE:
Wednesday's market hasn't come as a friend to the live cattle complex as the contracts are now pressuring the bottom side of their recent sideways trading range. Given that some feedlots decided that selling cash cattle on Tuesday was a good idea at lower money, the market's likely to keep this doggish tone through the week's end as cash prices won't likely see any improvement this week and as traders are feeling pressured. June live cattle are down $0.67 at $162.22, August live cattle are down $0.80 at $160.12 and October live cattle. No new cash cattle trade has developed at this point Wednesday, but more trade will likely need to happen ahead of the week's end. Thus far this week, Southern live deals have been marked at $172 which is $1.00 lower than last week's weighted average and dressed cattle have sold in Nebraska for $281, which is $3.00 lower than last week's weighted average.
Boxed beef prices are mixed: choice up $0.34 ($309.58) and select down $1.17 ($287.49) with a movement of 44 loads (33.03 loads of choice, 6.20 loads of select, zero loads of trim and 4.31 loads of ground beef).
FEEDER CATTLE:
Once again, the poor feeder cattle complex stands little to no chance at trading higher while the live cattle/cash cattle market erodes, and the nearby corn contracts front a mild $0.03 to $0.06 rally. The demand part of the market's equation is still strong for feeders as sale barns are reporting lighter receipts and prices are remaining high in the countryside for both feeders and calves, but the futures market doesn't seem to be focused on that bit of reality. May feeders are down $1.35 at $204.60, August feeders are down $1.50 at $224.67 and September feeders are down $1.32 at $227.95.
LEAN HOGS:
Even though the lean hog market is still modest support in its market's fundamentals, the lean hog contracts are trading lower as traders again trade the complex cautiously. June lean hogs are down $1.05 at $88.90, July lean hogs are down $1.22 at $90.20 and August lean hogs are down $1.35 at $91.15. At this point, the market will likely keep with its lower tone and look to Wednesday's afternoon carcass close for direction come Thursday, along with noting how exports fair in Thursday morning's export report.
The projected lean hog index for May 2 is up $0.76 at $73.78, and the actual index for May 1 is up $0.92 at $73.02. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.98 with a weighted average of $72.11, ranging from $70.00 to $77.00 on 5,880 head and a five-day rolling average of $70.93. Pork cutouts total 149.14 loads with 134.79 loads of pork cuts and 14.35 loads of trim. Pork cutout values: down $0.64, $81.44.
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