GENERAL COMMENTS:
It was a good day for the livestock complex as all three markets closed higher. Heading into Wednesday we'll be looking to see how pork cutout values fair and if the cattle complex is again able to move future away from the market's support plane at $172.00. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.33 with a weighted average price of $89.04 on 3,192 head. May corn is down 1/2 cent per bushel and May soybean meal is down $3.20. The Dow Jones Industrial Average is up 63.86 points.
LIVE CATTLE:
The live cattle complex is again pleased with its performance throughout the day as the market was able to close fully higher. Traders seem as though they're willing to put the fears of the avian influenza story behind them and focus on the matters at hand. Processing speeds were better at 124,000 head today, but the board's higher tone which continues to move the market further away from the market's support plane (at $172) is potentially the best news of the day. June live cattle closed $1.90 higher at $175.72, August live cattle closed $1.80 higher at $172.92 and October live cattle closed $1.80 higher at $175.80. No cash cattle trade developed throughout the day but early asking prices have been noted in the South at $184 plus. No trade is expected to develop until Thursday or Friday.
Tuesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $2.86 ($298.02) and select up $1.30 ($292.64) with a movement of 111 loads (70.51 loads of choice, 16.76 loads of select, 7.92 loads of trim and 16.15 loads of ground beef).
WEDNEDSAY'S CATTLE CALL: Steady/somewhat lower. The futures market has been encouraging thus far this week, but packers have slowly built up supplies around them which will likely mean that cash cattle prices trade lower again this week.
FEEDER CATTLE:
It was easy for the feeder cattle contracts to trade higher throughout Tuesday's trade as the market saw the live cattle contracts supportive tone and followed suit. Even though the cattle complex has been pressured over the last month, feeder cattle prices have remained mostly steady in the countryside. With green grass beginning to pop up and ranchers noting that they'll be branding and kicking out to summer pasture before too long -- it will be interesting to see what going to grass sales do in the upcoming weeks. On one hand, someone could argue that sales will just remain steady as buyers procured the vast majority of their needs early on, but on the other hand, with supplies as thin as they are, if a buyer is sitting flush with summer pasture, prices could turn higher as there won't be many calves left to be bought. Monitoring moisture will remain a key factor in how feeder cattle prices fair moving forward. May feeders are up $2.97 at $240.97, August feeders are up $2.57 at $252.35 and September feeders are up $2.57 at $253.60. The CME feeder cattle index 4/15/2024: up $0.29, $241.36.
LEAN HOGS:
Despite pork cutout values closing lower, the lean hog complex powered onward through Tuesday's close. June lean hogs closed $0.37 higher at $102.82, July lean hogs closed $0.27 higher at $104.02 and August lean hogs closed $0.02 higher at $101.60. The carcass prices' $4.05 flop solely stems from the whopping $22.78 decline seen in the belly. If the belly's ending price wasn't starkly lower, it's likely that the carcass prices would have traded merely steady. Pork cutouts totaled 282.38 loads with 237.44 loads of pork cuts and 44.94 loads of trim. Pork cutout values: down $4.05, $99.55. Tuesday's slaughter is estimated at 486,000 head -- 13,000 head more than a week ago and 5,000 head more than a year ago. The CME lean hog index 4/12/2024: up $0.17, $90.73.
WEDNEDSAY'S HOG CALL: Steady. Hog prices were up substantially on Tuesday and with pork cutout values closing lower, packers may be less aggressive in Wednesday's market.
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