GENERAL COMMENTS:
It was an excellent day for the cattle complex as cash cattle sales were higher in the North, but the hog complex did struggle throughout the day as traders weren't disappointed early on from the morning's export report. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.78 with a weighted average price of $88.71 on 1,695 head. July corn is up 3 1/2 cents per bushel and July soybean meal is down $1.60. The Dow Jones Industrial Average is down 375.12 points.
Thursday's export report shared that beef net sales of 15,200 mt for 2024 were down 14% from the previous week and 3% from the prior 4-week average. The three largest buyers were China (4,600 mt), Japan (2,500 mt) and Canada (2,000 mt). Pork net sales of 28,800 mt for 2024 were up 32% from the previous week, but down 25% from the prior 4-week average. The three largest buyers were Mexico (11,300 mt), Japan (4,200 mt) and South Korea (3,300 mt).
LIVE CATTLE:
On Wednesday, the cattle complex may have closed lower amid more news spreading about the HPAI virus, but traders quickly shook that news behind them and advanced the market notably through Thursday's trade as strong fundamental support surfaced from better cash cattle sales. Some light trade was noted in the North at $294 to $295 which is $2.00 to $3.00 higher than last week's weighted average. Southern live cattle continued to trade at $182 which is steady with last week's weighted average. But more than anything, it's extremely positive to see feedlots capitalizing on an opportunity to trade cattle higher and not letting technical or emotional trading disruptions alter their course. June live cattle closed $2.55 higher at $177.80, August live cattle closed $2.67 higher at $176.05 and October live cattle closed $2.05 higher at $179.70.
Thursday's slaughter is estimated at 125,000 head -- 7,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $1.18 ($296.92) and select down $0.76 ($289.66) with a movement of 120 loads (83.56 loads of choice, 14.38 loads of select, 4.19 loads of trim and 18.06 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady with the week's trend. Given that sales have now been reported in both regions, prices will likely remain steady where they are.
FEEDER CATTLE:
With Northern cash cattle trade scoring sales $2.00 to $3.00 higher than last week's weighted average, the feeder cattle complex was elated to trade higher upon such supportive fundamental news. May feeders closed $2.15 higher at $246.25, August feeders closed $2.00 higher at $258.30 and September feeders closed $1.92 higher at $259.42. The spot May contract was again able to close above the market's 100-day moving average, after falling below that threshold Wednesday afternoon. At Hub City Livestock Auction in Aberdeen, South Dakota compared to last week feeder steers weighing 650 to 749 pounds sold $8.00 to $12.00 higher, steers weighing 750 to 999 pounds sold $2.00 to $6.00 higher. Heifers were lightly tested but those weighing 600 to 649 pounds sold $10.00 to $14.00 higher. Cattle suitable for grass continue to see excellent demand as the opportunity to get these types of cattle bought to fill pastures dwindles each week. The CME feeder cattle index 4/24/2024: up $2.51, $245.15.
LEAN HOGS:
More than anything the lean hog complex seemed let down from Thursday's export report as traders have become accustomed to seeing large sales made given the excellent demand seen in the first quarter of the year. Pork cutout values closed slightly higher, but not even steady, stable support from domestic customers was enough to encourage traders through the day's trade. June lean hogs closed $2.45 lower at $105.00, July lean hogs closed $2.05 lower at $107.80 and August lean hogs closed $1.75 lower at $105.40. Pork cutouts totaled 221.79 loads with 190.12 loads of pork cuts and 31.67 loads of trim. Pork cutout values: up $0.22, $97.49. Thursday's slaughter is estimated at 485,000 head -- 1,000 head less than a week ago but 10,000 head more than a year ago. The CME lean hog index 4/23/2024: up $0.19, $91.64.
THURSDAY'S HOG CALL: Lower. Given that packers didn't show much support to Thursday's cash market likely means that they're all but done buying for the week and so consequently Friday's prices will likely be lower and on a thin volume traded.
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