GENERAL COMMENTS:
Weaker tones are being noted throughout the entire livestock complex as the announcement of the Consumer Price Index (CPI) jumping 3.5% in March likely means that the Federal Reserve won't decrease interest rates in June. And in an industry that already has high input and operating costs, interest rates play a big role in profitability. May corn is up 3 cents per bushel and May soybean meal is down $1.80. The Dow Jones Industrial Average is down 490.06 points.
LIVE CATTLE:
The live cattle complex seems to be weathering March's higher CPI better than the other markets, but it is trading lower, too. The fact remains that the live cattle complex still doesn't like seeing the news that inflation drove prices higher again in March because the market desperately needs beef demand to remain strong for prices to remain at these levels. This will likely hurt this week's cash cattle market when trade does develop. April live cattle are down $0.75 at $179.95, June live cattle are down $0.62 at $174.22 and August live cattle are down $0.57 at $171.97. No cash cattle trade has developed yet, but Southern asking prices are noted at $186.
Boxed beef prices are lower: choice down $2.85 ($299.24) and select down $2.32 ($297.58) with a movement of 68 loads (42.22 loads of choice, 13.64 loads of select, 2.70 loads of trim and 9.46 loads of ground beef).
FEEDER CATTLE:
If it's not one thing, it's another, and today's Achilles heal is the news surrounding the CPI. The feeder cattle complex doesn't stand much of a chance to trade higher as corn prices are slightly higher and the live cattle market is lending virtually no support as it too trades lower. April feeders are down $1.35 at $239.35, May feeders are down $1.37 at $238.07 and August feeders are down $1.27 at $248.82.
LEAN HOGS:
The lean hog complex is now trading lower despite the market's recent rally. The jump in March's CPI rattled the lean hog complex as hog producers and traders both keenly know that demand is essential for the lean hog market's ability to trade at these levels. April lean hogs are up $0.87 at $91.47, June lean hogs are down $3.30 at $105.27 and July lean hogs are down $3.32 at $107.07.
The projected lean hog index for April 9 is up $0.90 at $88.78 and the actual index for April 8 is up $0.83 at $87.88. Hog prices on the Daily Direct Morning Hog Report average $89.53, ranging from $80.50 to $93 on 1,228 head and a five-day rolling average of $87.49. Pork cutouts total 154.72 loads with 140.69 loads of pork cuts and 14.03 loads of trim. Pork cutout values: up $0.17, $100.88.
No comments:
Post a Comment