GENERAL COMMENTS:
It was a mixed day for the livestock complex as the cattle complex melted lower upon hearing that an individual who had worked with some of the HPAI-infected cattle in Texas had tested positive for the flu as well. Meanwhile, the lean hog complex was able to run through the day's close seeming unphased. Hog prices on the Daily Direct Afternoon Hog Report averaged $80.16 on 345 head and a five-day rolling average of $80.58. May corn is down 6 1/2 cents per bushel and May soybean meal is down $4.30. The Dow Jones Industrial Average is down 240.52 points.
LIVE CATTLE:
It was a brutal day for the live cattle complex as news spread that an individual in Texas who had been in close contact with dairy cattle that were ill with HPAI has now tested positive for HPAI as well. The Texas Health and Human Services did share that the only symptom that the individual had however was conjunctivitis -- otherwise the person was fine.
The market's focus continues to be the avian influenza story despite the market's fundamentals still remaining strong. Until this flu passes or health officials can provide more information on the long-term effects of the strain, the market is likely to remain on edge. In these situations, people and the market alike, don't do well waiting for time to provide to answers. April live cattle closed $4.92 lower at $180.07, June live cattle closed $4.92 lower at $175.32 and August live cattle closed $6.10 lower at $172.10. Monday's slaughter is estimated at 109,000 head -- 9,000 head less than a week ago and 11,000 head less than a year ago.
Last week, southern live cattle traded at $183 to $188, though mostly at $186, $2 lower than the previous week's weighted average. Northern dressed cattle sold for $297 to $302, but mostly at $298 to $300, $2 to $3 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 63,695 head. Of that, 80% (51,005 head) were committed to the nearby delivery while the remaining 20% (12,690 head) were committed to the deferred delivery.
Boxed beef prices closed lower: choice down $0.98 ($305.74) and select down $1.64 ($301.79) with a movement of 77 loads (42.89 loads of choice, 15.91 loads of select, 5.34 loads of trim and 12.76 loads of ground beef).
TUESDAY'S CATTLE CALL: Lower. Given that packers have cut processing speeds and are seeing slightly weaker boxed beef prices, it's likely that the cash cattle markets trades lower this week amid the futures market's turmoil.
FEEDER CATTLE:
The feeder cattle complex ran lower through Monday's trade as technical pressure was just too severe. April feeders closed $6.70 lower at $240.42, May feeders closed $6.02 lower at $242.67 and August feeders closed $7.17 lower at $251.65. Like the live cattle complex, once traders caught word of the HPAI flu spreading to an individual in Texas who had worked closely with infected dairy cattle, nothing else seemed to matter. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week feeder steers under 525 pounds sold $10.00 to $30.00 higher with the heavier weights selling $2.00 to $10.00 higher. Feeder heifers sold $6.00 lower to $10.00 higher. The steer calf market was on fire with a group of 517-pound steers selling for $3.75/pound. Feeder cattle supply over 600 pounds was 53%. The CME feeder index: not available at this time.
LEAN HOGS:
Even with the chaos surrounding the cattle complex, the lean hog market kept to itself and was able to keep its contracts higher through Monday's end. April lean hogs closed $0.32 higher at $86.95, June lean hogs closed $2.05 higher at $103.50 and July lean hogs closed $1.52 higher at $105.52. Pork cutout values closing higher did indeed help the market maintain its positive posture, but the carcass could be pressured later in the week if the belly sees any pressure as it was the driving factor in pushing the afternoon carcass prices higher with its $11.85 higher close. Pork cutouts totaled 219.01 loads with 188.80 loads of pork cuts and 30.21 loads of trim. Pork cutout values: up $2.95, $96.61. Monday's slaughter is estimated at 353,000 head -- 131,000 head less than a week ago and 132,000 head less than a year ago. The CME lean hog index 3/28/2024: down $0.04, $84.60.
TUESAY'S HOG CALL: Higher. Given that the cash market was hardly traded on Monday, it's likely that Tuesday's market sees more interest.
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