GENERAL COMMENTS:
Even though the lean hog complex closed lower as concerns about summer demand pressured its market, the cattle complex rallied through the day without a hitch. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.67 with a weighted average price of $90.38 on 1,799 head. July corn is down 2 cents per bushel and July soybean meal is down $2.90. The Dow Jones Industrial Average is up 153.86 points.
Friday-to-Friday livestock futures scored the following changes: April live cattle up $3.20, June live cattle up $2.90; May feeder cattle up $6.70, August feeder cattle up $7.05; June lean hogs down $2.35, July lean hogs down $0.52; May corn up $0.07, July corn up $0.07.
LIVE CATTLE:
The live cattle complex rounded out the week's trade modestly higher as traders found support in the market's cash cattle trade. Throughout the week, Southern live cattle traded at $182, mostly steady with the previous week's weighted average, but Northern dressed cattle traded at $294, $2 higher than last week's weighted average. The spot June contract closed above its 100-day moving average, which continues to be a price point that the market dances around, but if traders could find enough immediate fundamental support in the market, they'd likely confidently trade above that price point.
June live cattle closed $0.77 higher at $187.57, August live cattle closed $0.72 higher at $176.77 and October live cattle closed $0.90 higher at $180.60.
Friday's slaughter is estimated at 113,000 head -- steady from a week ago and 7,000 head more than a year ago. Saturday's slaughter is projected to be around 12,000 head. The week's total slaughter is estimated at 613,000 head -- 7,000 head less than a week ago and 13,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.22 ($297.14) and select down $0.94 ($288.72) with a movement of 125 loads (87.99 loads of choice, 24.57 loads of select, 3.43 loads of trim and 9.24 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. It will be interesting to see exactly how many cattle were sold this week and how they were committed to delivery. Packers are fighting to keep their margins profitable right now, so they won't easily give the cash cattle market any more money than what's demanded.
FEEDER CATTLE:
The feeder cattle market jumped into action for Friday's trade as the complex not only closed above its 100-day moving average, but the spot August contract closed above its 40-day moving average as well. Feeders were well supported throughout the day as traders took note of the cash cattle market's steady to $2 higher trade, and the market continues to be well supported by strong feeder cattle sales in the countryside.
I think it's also worth noting that the May and August feeder cattle contracts gained between $6.70 and $7.05 throughout the week -- that's a significant position!
May feeders closed $2.45 higher at $248.70, August feeders closed $2.25 higher at $260.55 and September feeders closed $2.15 higher at $261.57. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week and throughout the year, steers and heifers traded $4 to $9 higher, but the biggest weekly advancement was seen on seven-weight steers which traded $12 to $14 higher. Slaughter cows sold $3 to $8 lower and slaughter bulls sold $9 lower. Feeder cattle supply over 600 pounds was 78%. The CME feeder cattle index April 25: up $0.38, $245.53.
LEAN HOGS:
The lean hog complex closed lower as traders grew concerned about the market's demand outlook through the summer. Pork cutout values rounded out higher the day, but there's been some recent volatility in the belly which has caused the carcass price to fluctuate. The market has also seen some technical pressure as traders, ahead of the market's recent downturn, were close to pressuring the market's long-term resistant threshold, which is a stiff barrier given its new contract high in the spot June contract and the highest price point the market has traded in over a year.
June lean hogs closed $2.52 lower at $102.47, July lean hogs closed $1.85 lower at $105.95 and August lean hogs closed $1.45 lower at $103.95. Pork cutouts totaled 257.21 loads with 240.27 loads of pork cuts and 16.94 loads of trim. Pork cutout values: up $0.14, $97.63. Friday's slaughter is estimated at 439,000 head -- 41,000 head less than a week ago and 11,000 head less than a year ago. Saturday's slaughter is projected to be around 4,000 head. The CME lean hog index April 24: down $0.21, $91.43.
MONDAY'S HOG CALL: Lower. Given there's some question regarding summer demand, packers won't likely to support Monday's cash hog market much.
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