GENERAL COMMENTS:
It was a rough day throughout the livestock complex as the market saw pressure abound technically as fundamental support continues to lag. No substantial cash cattle trade has developed yet this week, but packer interest is expected to increase by Thursday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.01 with a weighted average price of $92.02 on 10,684 head. July corn is up 4 cents per bushel and July soybean meal is down $2.90. The Dow Jones Industrial Average is up 87.37 points.
LIVE CATTLE:
Wish all it may want, but the live cattle complex is struggling to find support in this market. Between sluggish boxed beef demand, and the continued nervousness of traders amid more bird flu stories and the USDA's testing of ground beef for traces of the virus, the complex is on edge and trading lower. June live cattle closed $1.12 lower at $173.85, August live cattle closed $2.00 lower at $171.10 and October live cattle closed $2.20 lower at $174.85. No cash cattle trade developed throughout the day, but it's assumed that the week's trend will be steady at best. Asking prices remain firm in the South at $185 to $186 but have not yet been established in the North. Packer demand will likely improve on Thursday, but trade could be delayed until Friday potentially.
Wednesday's slaughter is estimated at 123,000 head -- 2,000 head less than a week ago and 1,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.83 ($293.54) and select down $1.88 ($288.07) with a movement of 186 loads (137.56 loads of choice, 22.11 loads of select, 3.43 loads of trim and 23.20 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. With the market struggling all around, boxed beef prices will likely be steady at best.
FEEDER CATTLE:
The feeder cattle complex saw the biggest deterioration throughout Wednesday's market as traders noted the continued decline in the live cattle complex and watched corn prices trading mildly higher. More than anything, the uncertain, uneasy tone lingering throughout the cattle complex thanks to what seems like never-ending news surrounding the bird flu has the cattle contracts retreating -- and in an aggressive manner. May feeders closed $3.15 lower at $241.42, August feeders closed $3.75 lower at $251.75 and September feeders closed $3.87 lower at $252.60. At Winter Livestock Auction in La Junta, Colorado compared to last week there were too few feeder steers sold to accurately find a market trend, but feeder heifers sold $5.00 to $9.00 higher. Slaughter cows sold unevenly steady but slaughter bulls traded $5.00 higher. Feeder cattle supply over 600 pounds was 39%. The CME feeder cattle index 4/30/2024: up $0.03, $247.06.
LEAN HOGS:
The lean hog complex was the livestock complex's only hope of higher trade and even its market closed lower. June lean hogs closed $2.05 lower at $100.42, July lean hogs closed $1.80 lower at $103.62 and August lean hogs closed $1.25 lower at $102.15. The spot June hog contract saw the biggest decline in the hog complex as trader's $2.05 decline pushed the market close to pressuring long-term support planes. Part of the market's pressure stemmed from another day of lower pork cutout values, which exacerbates the market's bigger question of what will summer demand amount to. The carcass price's lower close was mostly due to the fact that the belly declined $10.61 -- otherwise the individual cuts closed on both sides of steady. Pork cutouts totaled 266.40 loads with 233.54 loads of pork cuts and 32.86 loads of trim. Pork cutout values: down $0.77, $97.99. Wednesday's slaughter is estimated at 480,000 head -- 3,000 head less than a week ago and 13,000 head more than a year ago. The CME lean hog index 4/29/2024: down $0.10, $90.26.
THURSDAY'S HOG CALL: Lower. Given that packers have actively bought over the last two days, it's likely that Thursday's cash market will see less interest.
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