GENERAL COMMENTS:
It was another rallying day for the cattle contracts, as the market's support has rocketed both live cattle and feeder cattle prices higher. Meanwhile, the lean hog complex saw a higher pork cutout close and higher cash prices, but traders remained leery. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $4.06 with a weighted average of $106.04 on 11,589 head. May corn is down 16 1/2 cents per bushel, and July soybean meal is down $2.40. The Dow Jones Industrial Average is down 368.03 points.
LIVE CATTLE:
The live cattle market kept with its ambitious pace throughout Thursday's trade and led the market to a fully higher close by the day's end. April live cattle closed $1.02 higher at $144.10, June live cattle closed $1.27 higher at $139.90, and August live cattle closed $1.42 higher at $141.57. The rally that the live cattle market has undergone this past week has taken the market by storm, and it's so refreshing to see the board and the cash market working side by side to support higher prices. The cash cattle market saw a little more trade in the North at $230 ($4 higher than a week ago and steady with the week's trend). Largely, it's looking like the week's trade is done with other than some clean-up trade that will happen in drabs here and there. Thursday's slaughter is estimated at 122,000 head -- 1,000 head less than a week ago and 3,000 head more than a year ago. When looking to Friday's market, stay tuned to the latest USDA Cattle on Feed report, as placements remain a wild card.
Active business took place on Tuesday, and a light trade was reported on Wednesday with Southern live deals marked at $139 to $141, mostly $140, $1 higher than last week's weighted averages. Northern dressed sales took place at $228 to $236, mostly $230, $4 higher than last week's weighted average basis Nebraska. Colorado reported transactions at $145, $3 higher than last week's weighted average.
Beef net sales of 15,000 metric tons (mt) for 2022 were down 13% from the previous week and 27% from the prior four-week average. The three largest buyers were Japan (4,600 mt), South Korea (4,100 mt) and China (2,500 mt).
Thursday's actual slaughter data shared that for the week ended April 9, 2022, steers averaged 912 pounds (up 3 pounds from the previous week), and heifers averaged 840 pounds (down 2 pounds from the previous week).
Boxed beef prices closed mixed: choice up $1.35 ($270.17) and select down $0.85 ($255.68) with a movement of 104 loads (65.63 loads of choice, 22.11 loads of select, zero loads of trim and 16.44 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady with the week's trend. It's looking like the bulk of this week's business is done with.
FEEDER CATTLE:
The feeder cattle contracts had an excellent day, as the live cattle complex continues to push higher into the latter half of the week and the corn market posed no threat, so the feeder cattle complex kept chipping away at higher prices. It was an especially good day for the spot May contracts, which closed about the market's 40-day moving average of $164.60 -- which the market has been trading below since late February. May feeders closed $2.37 higher at $164.85, August feeders closed $2.97 higher at $176.45 and September feeders closed $2.77 higher at $179.27. The CME feeder cattle index 4/20/2022: up $0.17, $154.66.
LEAN HOGS:
Thursday was another day of lower trading for the lean hog complex. The market saw phenomenal interest in the cash hog market, and pork cutout values did close higher, but the board isn't comfortable with consumer interest right now. It's seeming as though traders deem a correction necessary for the complex, and so, lower the markets go. June lean hogs closed $1.57 lower at $117.17, July lean hogs closed $1.42 lower at $118.62, and August lean hogs closed $1.37 lower at $117.02. Pork cutouts total 183.72 loads with 162.38 loads of pork cuts and 21.34 loads of trim. Pork cutout values: up $1.71, $110.20. Thursday's slaughter is estimated at 482,000 head -- 4,000 head more than a week ago and 1,000 head less than a year ago. The CME lean hog index 4/19/2022: up $0.43, $100.93.
Pork net sales of 12,900 mt for 20222 -- a marketing-year low -- were down 46% from the previous week and 55% from the prior four-week average. The three largest buyers were Mexico (4,700 mt), South Korea (2,800 mt) and Philippines (1,300 mt).
Thursday's actual slaughter data shared that for the week ending 4/9/2022 live hogs averaged 294 pounds, and dressed hogs averaged 219 pounds -- both steady with the week before.
FRIDAY'S CASH HOG CALL: Lower. Given that it's Friday, I'd suspect that packers have their needs met for the time being and will wait until next week to buy many more hogs.
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