GENERAL COMMENTS:
It's been a day of stark losses throughout the livestock complex as bearish tones take over the market's morale. The cash cattle market hasn't seen any bids renewed at this point, but more trade should develop ahead of the week's end unless packers are just going to rely on their deferred purchases. July corn is down 19 cents per bushel and July soybean meal is up $0.70. The Dow Jones Industrial Average is down 836.56 points.
LIVE CATTLE:
It's been a painstaking day for the live cattle market as traders sell the market lower and seem to all but wave the market goodbye. June live cattle are down $1.15 at $131.85, August live cattle are down $1.52 at $131.92 and October live cattle are down $1.50 at $138.00. The bearish tones come on the heels of weaker trading cash market, the knowledge that later this week the market will see another Cattle on Feed report unveiled, and that, with the summer months nearing, live cattle/fat cattle prices always get softer. Nevertheless, bear spreaders have had their way with the market and it's unlikely that the pressure seizes before prices get even cheaper. The cash cattle market hasn't seen any renewed interest as packers sit on a plethora of committed cattle. Throughout the week, live cattle have traded for $137 to $137, and dressed cattle have traded for $224 to $227, which puts prices $2.00 to $3.00 lower than last week.
The Fed Cattle Exchange Auction listed a total of 1,864 head (Texas 1,608 head, Kansas 151 head, Colorado 105 head), of which all 1,864 head went unsold, as they did not meet the reserve prices, that ranged from $133 to $142. Opening prices ranged from $131 to $137, high bids ranged from $132 to $136.
Boxed beef prices are mixed: choice up $0.59 ($261.07) and select down $2.19 ($246.00) with a movement of 84 loads (53.62 loads of choice, 14.45 loads of select, 5.53 loads of trim and 10.83 loads of ground beef).
FEEDER CATTLE:
The corn market may be trading $0.17 to $0.19 lower, but in order for the feeder cattle contracts to capitalize on the corn market's regression, it would need traders to be willing and interested in supporting its market. August feeders are down $1.27 at $165.50, September feeders are down $0.92 at $168.27 and October feeders are down $0.90 at $170.47. The feeder cattle market is uneasily trading through Wednesday's market as support is all but impossible to come by. As traders evaluate the market, they see input prices that are hard to pencil and a tough couple months ahead for the live cattle market, all of which makes it an easy decision for them to pay little to no attention to Wednesday's market.
LEAN HOGS:
After the past three trading days pushed the lean hog market substantially higher, Wednesday rolled around and set a weaker tone throughout the marketplace. June lean hogs are down $0.50 at $104.70, July lean hogs are down $1.22 at $106.65 and August lean hogs are down $1.50 at $105.77. It seems as though the market is simply taking a breath from its recent upward surge as fundamental support continues to support the marketplace, and now all the market needs is follow-through support from traders.
The projected lean hog index for May 17 is up $0.18 at $100.08, and the actual index for May 16 is down $0.17 at $99.90. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.86 at $108.49, ranging from $98.00 to $114.00 on 7,674 head and a five-day rolling average of $105.18. Pork cutouts total 139.51 loads with 117.11 loads of pork cuts and 22.40 loads of trim. Pork cutout values: up $3.07, $105.18.
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