GENERAL COMMENTS:
It was a mixed day for the livestock complex as the lean hog and feeder cattle contracts closed higher, but the live cattle market ended the day lower. No cash cattle trade has developed and won't likely until Thursday or Friday. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.54 with a weighted average price of $91.85 on 4,249 head. May corn is up 3 1/4 cents per bushel and July soybean meal is up $1.30. The Dow Jones Industrial Average is up 263.71 points.
LIVE CATTLE:
Traders ran the live cattle contracts sharply higher through Monday's market, but they weren't nearly as bold and braze through Tuesday's trade. June live cattle closed $0.90 lower at $177.15, August live cattle closed $0.90 lower at $175.50 and October live cattle closed $0.57 lower at $179.37. It is worth noting that the spot June contract did close above the market's 100-day moving average, but unless the complex again trades higher on Wednesday, Monday's rally may not amount to much more. No cash cattle trade has developed and most likely that trade will be delayed until Thursday or Friday. Feedlots are anticipated to price cattle higher this week.
Tuesday's slaughter is estimated at 125,000 head -- 1,000 head more than a week ago and 2,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.47 ($297.40) and select up $0.89 ($292.76) with a movement of 147 loads (98.72 loads of choice, 18.16 loads of select, 7.40 loads of trim and 22.56 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Feedlots may price cattle higher this week, but with boxed beef movement being sluggish, it's unlikely that traders pay more money for cattle as they can simply just cut kills if they need to.
FEEDER CATTLE:
Even with the nearby live cattle contracts rounding out the day weaker, the feeder cattle market charged onward through Tuesday's trade and closed fully higher. It was interesting to note that the September 2024 through November 2024 contracts saw the biggest daily gains. May feeders closed $0.87 higher at $246.05, August feeders closed $0.92 higher at $259.40 and September feeders closed $1.10 higher at $260.47. I credit most of Tuesday's success in the futures complex to the continued support of buyers in the countryside who have been relentless in their buying of feeder cattle this year. At Joplin Regional Stockyards in Carthage, Missouri compared to last week, feeder steers sold $3.00 to $7.00 higher and feeder heifers traded $6.00 to $12.00 higher. Supply was moderate with very good demand. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index April 22: not available at this time.
LEAN HOGS:
The lean hog complex traded higher throughout Tuesday's trade and saw the biggest gains in the nearby contracts. June lean hogs closed $2.45 higher at $107.95, July lean hogs closed $2.27 higher at $109.95 and August lean hogs closed $2.12 higher at $107.10. It was disappointing to see the carcass price close lower, which was primarily due to the $23.70 drop in the belly. In order for the market to continue to trade higher and potentially take on the resistance that was established during the second week of April. Pork cutouts totaled 292.97 loads with 274.51 loads of pork cuts and 18.47 loads of trim. Pork cutout values: down $4.84, $96.86. Tuesday's slaughter is estimated at 486,000 head -- steady with a week ago and 19,000 head more than a year ago. The CME lean hog index April 19: down $0.04, $91.31.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Even though pork cutout values closed lower, packers will need to buy more hogs before the week's over as processing speeds are running aggressively.
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