GENERAL COMMENTS:
The live cattle market had a stellar day as the spot June contract blew past the market's 100-day moving average, which sends bullish signals through the entire market. Meanwhile, the lean hog complex rounded out the day fully lower as the market remains uncomfortable with demand. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.41 with a weighted average of $101.98 on 6,570 head. July corn is up 10 1/4 cents per bushel and July soybean meal is up $6.70. The Dow Jones Industrial Average is up 249.59 points.
LIVE CATTLE:
It was a shocking day for the live cattle complex as the market saw the spot June contract take out the market's 100-day moving average. April live cattle closed $1.72 higher at $143.07, June live cattle closed $2.05 higher at $138.62 and August live cattle closed $1.97 stronger at $140.15. The market's ability to rally is thanks to the fact that fat cattle supplies are tight, especially in the North. Tuesday afternoon sharply higher cash cattle trade was noted in Nebraska, and from then on, the market's tone has been bullish. Thin supplies combined with swift processing speeds has allowed feedlots to have a victory week and until packers start pulling calf fed fats, it's likely to stay this way. Wednesday's cash cattle market was pretty quiet following Tuesday's phenomenal performance. Some cattle sold in Nebraska today at $146, but otherwise, trade was sparse. Wednesday's slaughter is estimated at 125,000 head, 1,000 head less than a week ago and 5,000 head more than a year ago.
Tuesday saw Southern live deals marked at $139 to $141, mostly $140, which was $1.00 higher. Later in the afternoon trade developed in the North at $228 to $236, mostly $230, which was $4.00 higher. Some sales were also reported in parts of Colorado at $145, $3 higher than last week.
The Fed Cattle Exchange Auction listed a total of 3,052 head, of which 641 actually sold, none were scratched from the auction and 2,411 head were listed as unsold, as they did not meet the reserve prices that ranged from $134 to $148. Opening prices ranged from $132 to $140, high bids ranged from $134 to $146. The state-by-state breakdown looks like this: Texas 1,366 total head, with 571 head sold at $135 to $140.25, and 795 head went unsold; Iowa 1,616 total head, of which none actually sold; California 70 total head, with all 70 head sold at $134.
Boxed beef prices closed lower: choice down $1.11 ($258.82) and select down $2.68 ($256.53) with a movement of 137 loads (97.85 loads of choice, 20.74 loads of select, 6.74 loads of trim and 11.19 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady with the week. Given that cattle have already traded in both regions, prices will likely hold steady with the week's trend.
FEEDER CATTLE:
The nearby corn contracts closed $0.10 and $0.11 higher, but the feeder cattle contracts clung to the fact that live cattle market broke above the market's 100-day moving average and that bullish tones are launching the cattle sector higher. April feeders closed $0.85 higher at $157.50, May feeders closed $1.70 higher at $162.47 and August feeders closed $2.02 higher at $173.47. Cost of gains will continue to be an issue for those buying cattle, but with where the market sits in its liquation phase, cattlemen also know that higher prices are dancing in the later half of 2022. At Winter Livestock Auction in Dodge City, Kansas, compared to last week, on a run of 2,754 head feeder steers weighing 700 to 950 pounds traded $2.00 to $3.00 stronger. Yearling steers weighing between 500 and 700 pounds sold $8.00 to $9.00 higher. There was no recent comparison on steer calves weighing 400 to 550 pounds, but a higher trend was noted. Feeder heifers weighing 850 to 975 pounds sold $4.00 to $5.00 higher. Yearling heifers weighing 575 to 850 pounds traded unevenly steady. Heifer calves weighing 400 to 575 pounds sold $6.00 to $8.00 higher. Slaughter cows sold $4.00 lower with the exception of 2 high yielding cows that sold for $0.96. Slaughter bulls sold steady to $3.00 higher. The CME Feeder Cattle Index for April 19: up $0.17, $154.66.
LEAN HOGS:
The lean hog complex kept its lower ascend throughout the day as traders are seeming unwilling to move the market any higher without solid, constant support being seen in pork cutout prices. Hog prices did close higher Wednesday afternoon, but the market has seen hit and miss demand as of late. June lean hogs closed $2.57 lower at $118.75, July lean hogs closed $1.95 lower at $120.05 and August lean hogs closed $1.67 lower at $118.40. DTN will share export data early Thursday morning, and will be closely watching to see what China does in this week's report. Pork cutouts total 253.02 loads with 216.97 loads of pork cuts and 36.04 loads of trim. Pork cutout values: up $1.37, $108.49. Wednesday's slaughter is estimated at 483,000 head, 5,000 head more than a week ago and 5,000 head less than a year ago. The CME Lean Hog Index for April 18: up $0.17, $100.50.
THURSDAY'S CASH HOG CALL: Lower. With the board traipsing lower and the tone of the market to seem unsupported, it's likely that the cash hog market doesn't see too much interest.
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