GENERAL COMMENTS:
It's a bleak day for the live cattle market as the cash cattle market is seeing more cattle trade at steady money and the likelihood of seeing higher prices grows thinner and thinner. The feeder cattle complex is trending lower as grain prices veered higher, but the lean hog market is finding support after a tough couple of days. May corn is up 6 3/4 cents per bushel and May soybean meal is up $8.50. The Dow Jones Industrial Average is down 32.25 points and NASDAQ is down 241.77 points.
LIVE CATTLE:
The live cattle complex is venturing lower Tuesday as finding footing and pushing the cash market higher ahead of the glut of calf-fed fats that are going to be hitting the market is incredibly challenging for feedlots as packers strategically manage their supplies.
Unfortunately, feedlots in the South are seeing more business come in at $138 in Kansas and Texas as feedlots continue to focus on the importance of keeping their showlists manageable, all while aspiring to push the cash cattle market higher. April live cattle are down $0.95 at $137.05, June live cattle are down $1.17 at $133.75 and August live cattle are down $1.17 at $135.02. With more cattle being traded at steady money with last week, it's likely the trend is being developed for this week's business and the likelihood for seeing higher prices is growing thin.
Boxed beef prices are higher: choice up $5.78 ($273.82) and select up $2.24 ($263.94) with a movement of 66 loads (35.18 loads of choice, 7.16 loads of select, 13.91 loads of trim and 9.31 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are trending lower as the grain market higher. The market is finding support around $159.00, which stands as long-term support. April feeders are down $1.45 at $156.92, May feeders are down $2.37 at $160.10 and August feeders are down $1.75 at $172.35. With the live cattle market adding little to no support to the overall cattle sector, the feeder cattle contracts are clinging to the influence of the grain complex and will likely continue to venture lower throughout the day as the live cattle complex comes up against tough pushback from packers and their ability to manage supplies keeps the cash cattle market depressed.
LEAN HOGS:
The lean hog complex is trending slightly higher as the market finds support after a tough couple of days late last week and Monday. April lean hogs are down $0.30 at $99.15, June lean hogs are down $0.35 at $115.80 and July lean hogs are down $0.55 at $115.90. Pork cutout values will heavily influence the market in the days ahead as packers gauge interest and demand amid such limited supplies. The question the market is posed with now is whether or not Tuesday's support is a break to the market's downward trend, or if the market will continue to traipse lower in the days ahead after an incredible rally.
The projected CME Lean Hog Index is delayed at this time. Hog prices have averaged $100.96 on the Daily Direct Morning Hog Report on 9,955 head with a five-day rolling average $102.67. Pork cutouts total 142.12 loads with 123.11 loads of pork cuts and 19.02 loads of trim. Pork cutout values: down $0.46, $105.89.
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