GENERAL COMMENTS:
With the nearby corn contracts printing over $8.00 per bushel, both the live cattle and feeder cattle contracts dipped lower by Wednesday's close. The lean hog complex continues to yearn for strong consumer demand, but the market just isn't seeing the support it needs for it nearby contracts. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.70 with weighted average of $104.73 on 8,930 head. July corn is up 10 3/4 cents per bushel and July soybean meal is up $4.00. The Dow Jones Industrial Average is up 61.75 points.
LIVE CATTLE:
It was a dismal day for the live cattle complex as the market closed lower and pushed the spot June contract back below the 40-day moving average. June live cattle closed $1.22 lower at $135.02, August live cattle closed $1.25 lower at $137.02 and October live cattle closed $1.20 lower at $143.40. Even though it shouldn't have an effect on the live cattle market, the corn market's $0.10 to $0.12 jump grabbed the live cattle market's attention and helped solidify traders desire to move prices lower. The cash cattle market saw some more trade develop, but prices held steady with the week's trend. It was disappointing to see that some of the cattle that sold in Nebraska weren't committed for delivery until the week of May 16. Nevertheless, throughout the week live cattle have traded for mostly $140 (steady with last week's market) and Norther dressed trade has averaged $232 ($2.00 higher than last week's business).
Wednesday's slaughter is estimated at 125,000 head, steady with a week ago and 5,000 head more than a year ago.
Boxed beef prices closed lower: choice down $2.26 ($261.91) and select down $3.91 ($252.32) with a movement of 160 loads (96.54 loads of choice, 28.79 loads of select, 14.63 loads of trim and 20.26 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady with the week. Given that cattle have sold in both regions, prices will likely stay steady with the week's trend.
FEEDER CATTLE:
There's nothing that will send the feeder cattle contracts crashing faster than the grim sight of $8.00 per bushel corn. With the May and July 2022 contracts printing over $8.00 per bushel, and the contracts close thereafter being well into the mid-$7.00 range -- feedlots nearly equate the cost of corn to that of what it would be if they were feeding their cattle liquid gold. May feeders closed $3.37 lower at $157.35, August feeders closed $4.20 lower at $168.95 and September feeders closed $3.75 lower at $172.47. The CME Feeder Cattle Index for April 26: down $0.40, $156.12.
LEAN HOGS:
The lean hog complex kept with its technical downward ascend, which was complimented by the pork cutout values lower close, but cash hog prices rounded out the day $1.70 higher on nearly 9,000 head. The nearby lean hog contracts closed lower but from the months of October 2022 through the summer of 2023, the market closed modestly higher. High inflation rates and timid domestic consumers have made traders rethink their position and it's unanimous that they intend to work the market lower. June lean hogs closed $0.82 lower at $110.35, July lean hogs closed $0.45 lower at $113.15 and August lean hogs closed $0.15 lower at $112.37. It's unlikely that much is told in Thursday's export report for the hog sector, but with export business being as dull as it has been, hog producers will continue to watch for it in case something supportive is found. Pork cutouts total 317.26 loads with 287.46 loads of pork cuts and 29.80 loads of trim. Pork cutout values: down $0.04, $105.51. Wednesday's slaughter is estimated at 482,000 head, 1,000 head less than a week ago and steady with a year ago. The CME Lean Hog Index for April 25: up $0.39, $102.89.
THURSDAY'S CASH HOG CALL: Lower. Given that packers have been aggressive twice now in this week's market, it's likely that their buying is largely done for the week.
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