GENERAL COMMENTS:
The market was sent mixed messages from Thursday's export-sales report as hogs hit a new marketing-year high, but the cattle complex received lousy support from the export report. That hasn't hindered the live cattle market's ability to rally as prices are still fully higher. July corn is down 17 1/2 cents per bushel and July soybean meal is down $1.40. The Dow Jones Industrial Average is up 324.23 points.
LIVE CATTLE:
The standoff between packers and feedlots continues into Thursday's afternoon as cattle are yet to really trade. With the futures market trading higher and boxed beef prices still strong, feedlots are remaining confident in their quest for higher prices. They clearly understand that front-end supplies of market-ready cattle are thin, and that if they're to make the most out of this bull rally, they've got to work the market while it favors their position. Asking prices in the South are noted at $176 and in the North at $286 plus. There was a thin movement of cattle traded in the North Wednesday afternoon with dressed deals ranging from $275 to $285, and Southern live cattle traded for $171 to $175. Given that only a thin number of cattle sold and that the price spread was so large, Thursday's market is free to demand whatever it sees fit as Wednesday's trade didn't develop any sort of trend. June live cattle are up $0.15 at $164.72, August live cattle are up $0.12 at $163.52 and October live cattle are up $0.15 at $167.57.
Beef net sales of 9,500 mt for 2023 were down 50% from the previous week and 28% from the prior four-week average. The three primary buyers were Japan (2,400 mt), South Korea (2,200 mt) and Canada (1,600 mt).
Boxed beef prices are higher: choice up $1.49 ($210.73) and select up $2.17 ($290.11) with a movement of 48 loads (24.80 loads of choice, 13.26 loads of select, 4.41 loads of trim and 5.84 loads of ground beef).
FEEDER CATTLE:
With the corn complex falling out of bed (down anywhere from $0.12 to $0.18 in the nearby contracts), the feeder cattle contracts are keeping their higher momentum into the day's noon hour. May feeders are up $1.20 at $211.47, August feeders are up $0.67 at $231.62 and September feeders are up $0.87 at $234.60. More than anything, feeders are waiting to see what this week's cash cattle market amounts to as they're hopeful prices can be at least steady.
LEAN HOGS:
The lean hog market is trading mostly higher into Thursday's noon hour, although the spot June contract is facing some mild pressure. The day's biggest support and surprise came with the export data. With a new marketing-year high, the market was thrilled to be able to market right at 54,000 metric tons abroad. Demand domestically remains finicky, but there has been a slight increase in support this week. June lean hogs are down $0.55 at $89.72, July lean hogs are down $0.15 at $92.37 and August lean hogs are up $0.07 at $93.40.
The projected lean hog index for April 26 is down $0.02 at $71.29, and the actual index for April 25 is up $0.11 at $71.31. Hog prices are higher on the Daily Direct Morning Hog Report, up $2.43 with a weighted average of $68.89, ranging from $66.00 to $75.00 on 5,557 head and a five-day rolling average of $66.95. Pork cutouts total 136.69 loads with 119.58 loads of pork cuts and 17.11 loads of trim. Pork cutout values: up $0.42, $78.79.
Pork net sales of 54,000 mt for 2023 -- a marketing-year high -- were up 50% from the previous week and 47% from the prior four-week average. The three largest buyers were Mexico (32,400 mt), Japan (6,400 mt) and Canada (4,700 mt).
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