GENERAL COMMENTS:
Strong triple-digit gains in nearby live cattle futures contracts are the key driver of market activity through Wednesday morning. Although limited additional new direction seems to be uniformly seen through the complex, the focus on continued firm beef values is keeping traders active in summer live cattle contracts. Feeder cattle futures remain very lightly traded with nearby contracts seeing limited interest and only moderate price shifts. Although some additional price support is seen in late 2025 feeder cattle contracts, limited market volume may keep this shift subdued in the near future. Lean hog futures remain under moderate pressure, with deferred contracts leading prices lower. May corn is down 3 1/2 at $4.583 and May soybean meal is down $4.30 at $288.00. The Dow Jones Industrial Average is up 68.22 at 42,058.18.
LIVE CATTLE:
Live cattle futures have regained additional momentum through midweek with prices moving through last week's highs of $109.55 per cwt in April contracts. This ability to move to additional heights over the past couple of days has helped to rekindle buyer support in both nearby and deferred contracts. Most of the buyer support and aggressive price movement have been contained to April through August contracts with traders focusing on summer demand and the potential for further wholesale and retail beef price support over the coming months. Cash cattle markets remain at a general standstill midweek with activity through the morning and a very slow start to the day with just a few asking prices noted around $212 in the South, but they are still not established in the North. Bids are very hard to find. Significant trade volume will likely be delayed until Thursday or Friday. April live cattle are $1.58 higher at $210.7, June live cattle are $2.13 higher at $207.55 and August live cattle are $1.55 higher at $203.875.
Boxed beef prices are Lower: choice down $1.34 ($340.88) and select down $2.05 ($320.02) with a movement of 64.38 loads (41.53 loads of choice, 9.70 loads of select, 7.99 loads of trim and 5.16 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are holding onto light to moderate gains following the support in live cattle trade through the morning. Narrow support is seen in April and May contracts, with prices 12 cents higher in each of these contract months. But further support is seen in fall 2025 contracts with prices nearing $1 per cwt through the morning. The potential for tighter supplies through the end of the year and continued long-term strength in beef values well past the current run higher is helping to sustain longer-term support through the feeder cattle complex. Given the recent support in the market, nearby and deferred contracts are holding well above both 40-day and 100-day moving averages as contracts continue to reach for new contract highs. April feeders are $0.85 higher at $289.125, May feeders are $0.70 higher at $287.85 and August feeders are $1.13 higher at $293.525.
LEAN HOGS:
Lean hog futures remain under pressure as traders continue to battle the uncertainty of tariff implications and economic concerns for both short- and longer-term buying decisions. Spot month April contracts are holding very narrow losses at midday, although summer contracts are trading with triple-digit losses as concerns of moving further lower keep buyers on the sidelines. May through July futures have dipped below the 40-day moving average during morning trade, and a close below this threshold could spark additional liquidation in the near future. April lean hogs are $0.08 lower at $87.3, May lean hogs are $0.65 lower at $88.825 and June lean hogs are $1.38 lower at $95.65. Hog Prices are higher on the Daily Direct Morning Hog report, up $0.88 with a weighted average of $88.96, ranging from $85.00 to $89.50 on 3,605 head with a five-day rolling average of $88.52. Pork Cutouts totaled 201.96 loads with 177.56 loads of pork cuts and 24.40 loads of trim. Pork cutout values are down $2.40 at $93.92.
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