GENERAL COMMENTS:
The livestock complex is trading mixed into Friday's noon hour as the cattle sector is trading mildly lower ahead of seeing the afternoon's Cattle on Feed report, but the hog complex is trading higher amid better consumer demand. A little bit of cash cattle trade has developed -- with prices trading $1.00 lower in the North but remaining steady in the South, but more trade will need to develop ahead of the week's end. May corn is up 6 cents per bushel and July soybean meal is up $5.90. The Dow Jones Industrial Average is up 69.71 points.
LIVE CATTLE:
Although traders would like to make a move in the live cattle market, the market's support won't likely come to fruition ahead of the week's end. With Northern cash cattle beginning to trade at $292 which is $1.00 lower than last week's weighted average, and the monthly Cattle on Feed report set to be released later this afternoon, it's most likely that traders keep with their cautious, lower trend though the afternoon and through the day's close. June live cattle are down $0.32 at $175.05, August live cattle are down $0.50 at $173.02 and October live cattle are down $0.42 at $176.30. A handful of cattle have sold in the South for $182 which is steady with last week's weighted average, but total trade volumes remain incredibly light in both regions. Southern asking prices remain firm at $184 to $185, and at $295 plus for Northern dressed cattle.
Boxed beef prices are higher: choice up $0.13 ($295.93) and select up $1.80 ($291.07) with a movement of 90 loads (55.46 loads of choice, 11.25 loads of select, 13.92 loads of trim and 8.92 loads of ground beef).
FEEDER CATTLE:
Given that the live cattle contracts are trading lower, that cash cattle trade is being reported at steady to $1.00 lower and that the nearby corn contracts are trading $0.05 to $0.06 higher -- it's not surprising to see the feeder cattle contracts trading lower into Friday's noon hour. May feeders are down $1.05 at $241.50, August feeders are down $1.35 at $252.95 and September feeders are down $1.42 at $253.87. Not to mention, with the monthly Cattle on Feed report set to be unveiled later this afternoon, traders normally pull back ahead of that report's monthly showcasing. Placements are expected to be lower (following last month's 110% showing), but total on feed numbers are anticipated to be greater than a year ago with weaker marketings.
LEAN HOGS:
The lean hog complex has shaken the blues which its market possessed through Thursday's trade and is trading notably higher into Friday's noon hour. It comes as no surprise to see that cash prices are lower given that packers fulfilled their needs earlier in the week, but it is supportive to note that midday pork cutout values are higher and that the carcass prices are being supported by subtle gains across nearly all the cuts -- not by one wild price swing in one cut. Like we commonly see in the belly's volatility. June lean hogs are up $1.90 at $104.60, July lean hogs are up $1.90 at $106.25 and August lean hogs are up $1.97 at $103.75.
The projected lean hog index for April 18 is down $0.11 at $91.35, and the actual index for April 17 is up $0.10 at $91.46. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.80 with a weighted average price of $88.69, ranging from $83.00 to $92.00 on 723 head and a five-day rolling average of $88.87. Pork cutouts total 146.32 loads with 133.51 loads of pork cuts and 12.81 loads of trim. Pork cutout values: up $1.06, $101.02.
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