GENERAL COMMENTS:
It's a doggish Wednesday for the livestock complex as all three markets are trading lower and boxed beef prices are lower. Traders desperately want to see continued consumer support in both beef and pork demand before they support the contracts anymore. July corn is down 7 1/2 cents per bushel and July soybean meal is down $3.40. The Dow Jones Industrial Average is up 82.74 points.
LIVE CATTLE:
Traders are letting the live cattle complex drift lower as the market desperately needs a shot of support. With boxed beef prices trading slightly lower, traders and cattle enthusiasts alike want to see better consumer support as that will likely encourage traders to support the contracts and help bolster the cash cattle market as well.
June live cattle are down $1.02 at $176.60, August live cattle are down $1.30 at $174.22 and October live cattle are down $1.45 at $177.47. No trade has developed in the cash cattle market and at this point it's looking like trade will be delayed until Thursday. Asking prices in the South are noted at $186 to $187 but haven't been established yet in the North.
Boxed beef prices are lower: choice down $1.79 ($296.70) and select down $3.46 ($288.88) with a movement of 98 loads (61.39 loads of choice, 17.09 loads of select, 8.40 loads of ground beef and 11.39 loads of trim).
FEEDER CATTLE:
The feeder cattle complex is back in retreat mode as the market noted Tuesday's mixed cutout close and today's weak midday prices. It's also worth mentioning as it's likely having a psychological effect on the market that Cargill has announced the sale of its Fresno, California, beef plant to a local processor (Central Valley Meat) which doesn't bode well for the industry as fewer buyers hinder price discovery. May feeders are down $2.50 at $239.65, August feeders are down $2.47 at $251.95 and September feeders are down $2.52 at $252.92.
LEAN HOGS:
The lean hog complex isn't seeing the same support that Tuesday's market did as the contracts are trading lower as they weren't thrilled with Tuesday afternoon's lower pork cutout close. Yes, midday pork cutout values are higher today, but it's the afternoon carcass price that really matters. If Thursday's export sales report is fruitful, that may also encourage higher trade. But for now, the market seems set in a lower trend for the day.
June lean hogs are down $0.65 at $97.67, July lean hogs are down $1.02 at $101.47 and August lean hogs are down $1 at $100.80. The projected lean hog index for May 7 is up $0.25 at $91.28 and the actual index for May 3 is up $0.24 at $91.03. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.60 with a weighted average price of $92.58, ranging from $88.50 to $95 on 3,512 head and a five-day rolling average of $92.27. Pork cutouts total 134.79 loads with 114.05 loads of pork cuts and 20.75 loads of trim. Pork cutout values: up $2.70, $99.79.
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