GENERAL COMMENTS:
As Wednesday nears the noon hour, the livestock complex isn't having the day it hoped for, as traders send the contracts lower. A few more pens of cattle have sold in Nebraska for $230, but unfortunately, they're committed for delivery not until May 16. July corn is up 13 1/2 cents per bushel and July soybean meal is up $8.80. The Dow Jones Industrial Average is up 418.04 points.
LIVE CATTLE:
The live cattle market hasn't seen the technical support it would have liked to have gotten Wednesday, and with the onset of a lower futures market, packers are getting some cattle bought with time in Nebraska. There's only been a handful trade in eastern Nebraska for $230, but the kicker of the deal is that they're committed for the week of May 16. The rest of the market hasn't seen much interest as packers are sitting quietly through Wednesday's trade and probably focusing on the cattle market conversations happening in the House Wednesday. Southern feedlots are asking $142 for cattle left on showlists, and Northern feedlots are asking $232 plus. June live cattle are down $1.42 at $134.82, August live cattle are down $1.32 at $136.95 and October live cattle are down $1.22 at $143.37. More trade should develop ahead of the week's end.
Boxed beef prices are lower: choice down $1.59 ($262.58) and select down $3.07 ($253.16) with a movement of 93 loads (53.19 loads of choice, 16.92 loads of select, 10.30 loads of trim and 12.83 loads of ground beef).
FEEDER CATTLE:
As the nearby corn contracts trend $0.08 to $0.12 higher, the feeder cattle complex trades sharply lower. May feeders are down $2.00 at $158.82, August feeders are down $3.17 at $169.97 and September feeders are down $2.97 at $173.25. With the live cattle market now trending lower and corn prices showing no signs of switching their direction, it's likely that feeders will face a lower ascending market through Wednesday's trade. High grain prices will continue to be a challenge for cattle buyers, but if the countryside starts to see pastures green up and grass able to grow, then some optimism could bloom.
LEAN HOGS:
The nearby lean hog contracts are struggling with Wednesday's market while the deferred contracts show mild support. Again, it's the fact that the market sits uncomfortably with consumers, as they've been a fickle and unpredictable crowd as of late. A 7% spike in year-over-year inflation has undoubtedly pushed consumers away from retailers' coolers and traders are adjusting their positions to take into account the market's uncertainty. June lean hogs are down $0.80 at $110.37, July lean hogs are down $0.45 at $113.15 and August lean hogs are down $0.22 at $112.30.
The projected lean hog index for April 26 is down $0.55 at $102.34 and the actual index for April 25 is up $0.39 at $102.89. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.59 with a weighted average of $99.33, ranging from $95.00 to $110.00 on 4,150 head and a five-day rolling average of $100.38. Pork cutouts total 162.46 loads with 147.97 loads of pork cuts and 14.49 loads of trim. Pork cutout values: up $3.68, $109.23.
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