GENERAL COMMENTS:
The cattle complex was able to regain some of the position lost through Monday's market by Tuesday's end. Still no cash cattle trade has developed, and it's likely that trade will be delayed until Thursday or later this week. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $4.55 with a weighted average price of $84.71 on 4,779 head. May corn is down 9 cents per bushel and May soybean meal is down $5.10. The Dow Jones Industrial Average is down 396.61 points.
LIVE CATTLE:
It was relieving to see the live cattle complex close higher following Monday's sharp ascend. For the time being at least, the news surrounding avian influenza has seemed to lessen and the cattle complex was able to focus on its own individual market through Tuesday's trade. April live cattle closed $1.70 higher at $181.77, June live cattle closed $1.05 higher at $176.37 and August live cattle closed $1.02 higher at $173.12. The market desperately needs a shot of encouragement from its fundamentals which could be tough this week as the cash cattle market is expected to trade lower and boxed beef prices are trending slightly lower. No sales have been reported yet, and trade will likely be delayed until Thursday or Friday. Early asking prices in the South are noted at $188 plus and remain unestablished in the North.
Tuesday's slaughter is estimated at 120,000 head -- 5,000 head less than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.58 ($304.16) and select down $2.80 ($298.99) with a movement of 125 loads (94.97 loads of choice, 14.08 loads of select, 3.49 loads of trim and 12.64 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Lower. Given the technical turmoil that the market has endured already this week, slightly lower prices are expected for the cash market this week (most likely $1.00 to $2.00 lower). Not to mention, packers committed 80% of the cattle they bought last week to the nearby delivery.
FEEDER CATTLE:
The feeder cattle complex was able to advance its contracts $2.00 to $3.00 higher as traders noted the lower close in corn prices and felt supported by the live cattle contract's higher end. April feeders closed $3.07 higher at $243.50, May feeders closed $2.17 higher at $244.85 and August feeders closed $3.00 higher at $254.65. The market lost significant position Monday afternoon as the announcement that an individual who had been working with dairy cattle infected with avian influenza had personally tested positive with the strain. The HPAI situation continues to be the cattle complex's current weakness as traders and cattlemen alike aren't certain whether this will be a talking point only discussed this week or for the months to come. All while, market participants are also trying to respect the strong fundamental position the cattle complex holds. Time will tell, but thankfully Tuesday brought stronger prices for the feeder cattle market. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week the bulk of supply that was average in quality traded mostly steady. Steers and heifers of good quality sold $4.00 to $8.00 higher. Feeder cattle supply over 600 pounds was 63%. The CME feeder cattle index 4/1/2024: up $0.60, $248.27.
LEAN HOGS:
The lean hog complex closed mixed, with again the summer and fall months of 2024 closing higher, while the rest of the market closed slightly lower. The market was supported by both cash and cutout values as both prices closed higher, but traders will be more comfortable in the short term if Thursday's export report again is supportive as demand continues be the biggest priority -- both domestically and internationally. April lean hogs closed $0.40 lower at $86.55, June lean hogs closed $0.22 higher at $103.72 and July lean hogs closed $0.07 higher at $105.60. Pork cutouts totaled 243.90 loads with 217.95 loads of pork cuts and 25.95 loads of trim. Pork cutout values: up $0.52, $97.13. Tuesday's slaughter is estimated at 489,000 head -- 6,000 head more than a week ago and 5,000 head more than a year ago. The CME lean hog index 3/29/2024: up $0.18, $84.78.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Packers were more aggressive in Tuesday's market, but the week's total volume has still been thin.
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