GENERAL COMMENTS:
The livestock complex struggled throughout all of Friday's trade which led to all three markets closing lower. The market's main focus points seemed to be on inflation and the continued spread of HPAI in dairy cattle. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.45 with a weighted average price of $86.60 on 1,575 head. May corn is up 6 3/4 cents per bushel and May soybean meal is up $8.80. The Dow Jones Industrial Average is down 475.84 points.
From Friday to Friday livestock futures scored the following changes: April live cattle down $6.10, June live cattle down $8.78; April feeder cattle down $9.53, May feeder cattle down $14.50; April lean hogs up $4.25, June lean hogs up $0.63; May corn down $0.06, July corn down $0.07.
LIVE CATTLE:
The live cattle complex wasn't able to look beyond Friday's pressures and ultimately closed lower like the rest of the livestock complex. From mounting concerns about the economy and how higher inflation will affect consumers through the summer, to the continuous spread of HPAI in dairy cattle, the market had more external pressure today than what traders knew what to do with. From a technical standpoint, today's close in the spot June contract is nerving. Last Friday the market underwent immense pressure and carved out what seemed to be a new support plane for the contract. But today's close threatened that threshold and leaves traders wondering if there's a more immediate downside to be seen? June live cattle closed $2.42 lower at $171.47, August live cattle closed $2.70 lower at $168.75 and October live cattle closed $2.80 lower at $171.77. Throughout the day there was a little more cash cattle trade that developed, but prices remained steady with Thursday's decline. Throughout the week Southern live cattle traded at mostly $182 which is $2.00 lower than last week's weighted average. Northern dressed cattle traded for mostly $293 to $295 which is $2.00 to $4.00 lower than last week's weighted average. Some of the dressed cattle were bought with time for the week ending 4/29/2024.
Friday's slaughter is estimated at 109,000 head -- 6,000 head less than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed higher: choice up $2.20 ($300.57) and select up $0.39 ($295.54) with a movement of 106 loads (66.39 loads of choice, 17.33 loads of select, 6.95 loads of trim and 15.38 loads of ground beef).
MONDAY'S CATTLE CALL: Lower. Given that packers were able to buy some cattle with time this past week, it's likely that they back cash prices up again next week.
FEEDER CATTLE:
The feeder cattle complex stood no chance at closing higher Friday afternoon as the market noted the lower close in the live cattle complex and couldn't deny the rest of the market's stresses. Not to mention, on a day where pressure is ample, the corn market's mere $0.06 rally didn't help either. April feeder cattle closed $1.57 lower at $237.60, May feeder cattle closed $3.95 lower at $234.20 and August feeders closed $3.45 lower at $245.50. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week and throughout the entire state, feeder steers and heifers sold $2.00 to $5.00 lower. Steer and heifer calves sold $6.00 to $9.00 lower. Slaughter cows sold $1.00 to $2.00 lower and slaughter bulls traded steady. Feeder cattle supply over 600 pounds was 62%. The CME feeder cattle index 4/11/2024: up $0.93, $244.57.
LEAN HOGS:
The lean hog complex scored contract highs earlier this week, but by Friday's end, not even the lean hog complex could entice traders into supporting its market. More than anything, outside concerns about the economy and what effect inflation is going to have on consumers had the market rattled through Friday's end. Thankfully pork demand has been strong, but in order for prices to remain at the levels in which they're currently trading, demand is essential both domestically and internationally. June lean hogs closed $3.72 lower at $102.07, July lean hogs closed $3.37 lower at $104.25 and August lean hogs closed $2.85 lower at $102.25. Pork cutout values would have likely closed higher if it weren't for the $11.29 drop in the rib -- otherwise, the market saw mostly higher closes in the individual cuts. Pork cutouts totaled 307.13 loads with 295.18 loads of pork cuts and 11.95 loads of trim. Pork cutout values: down $0.09, $101.20. Friday's slaughter is estimated at 484,000 head -- 1,000 head less than a week ago and 17,000 head less than a year ago. The CME lean hog index 4/10/2024: up $1.06, $89.84.
MONDAY'S HOG CALL: Lower. Packers may be cautious to over support the cash market on Monday until they see how the demand outlook looks for the week.
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