GENERAL COMMENTS
It was a lower trending day for the livestock complex as traders remain cautious of being overly supportive of the markets before seeing what develops this week fundamentally. Boxed beef prices did close higher, which bodes well for feedlots that yearn for higher cash cattle prices, but pork cutout values closed lower. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.28 with a weighted average of $72.38 on 12,236 hogs. May corn closed down 4 at $6.538 and May soybean meal closed down $6.80 at $457.4. The Dow Jones Industrial Average is down 198.77 at 33,402.38.
LIVE CATTLE:
After rallying to new contract highs late last week, traders have grown skeptical of doing much of anything in the live cattle market ahead of seeing what this week's cash cattle trade accomplishes. The market's fundamentals continue to point to stronger prices as boxed beef prices continue to firm and as all industry participants know that front-end supplies of market-ready cattle are thin. April live cattle closed $0.53 lower at $167.6, June live cattle closed $1.00 lower at $160.225 and August live cattle closed $0.98 lower at $159.775. Tuesday's slaughter is estimated at 126,000 head, 1,000 head less than a week ago and 1,000 head more than a year ago. Monday's slaughter was revised to 117,000 head. No cash substantial cash cattle trade will likely develop ahead of Thursday as feedlots are once again gunning for higher prices. Asking prices are noted in the South at $170, but remain unestablished in the North.
Boxed beef prices closed mixed: choice up $2.85 ($287.94) and select up $3.77 ($277.95) with a movement of 106.52 loads (71.28 loads of choice, 18.93 loads of select, 7.77 loads of trim and 8.54 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. It's not likely that the cash cattle market will see much action ahead of Thursday as feedlots desire to get higher prices again this week. But when cattle do trade, prices will likely be higher.
FEEDER CATTLE:
Even though feeder cattle prices continue to etch higher in the countryside, the board wasn't receptive to the strong fundamental support of higher trending feeder cattle prices and cheaper corn. After rallying to new highs late last week, traders are being cautious early this week as they want to make sound decisions in the cattle market given the economy's shaken state. Even though the U.S. economy is strained, the outlook for both feeder cattle and live cattle prices remains promising. The market is being driven by strong cash prices and excellent fundamentals, not by technical indicators. April feeders closed $1.00 lower at $197.95, May feeders closed $0.88 lower at $202.275 and August feeders closed $1.20 lower at $219.5. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week, feeder steers sold $3.00 to $8.00 higher and feeder heifers sold $4.00 to $7.00 stronger. Feeder cattle supply over 600 pounds was 52%. The CME Feeder Cattle Index for April 3: up $1.34, $193.02.
LEAN HOGS:
Like both the live cattle and feeder cattle markets, the lean hog complex closed lower as traders kept themselves distanced from the livestock market throughout Tuesday's hours. More than anything, traders are desiring to see strong fundamental support before they advance the contracts again, and in the case of the lean hog market, that wish wasn't granted on Tuesday as both cash prices and pork cutout values closed lower. Pork cutout values closed $1.47 lower with the biggest declines seen in the butt (down $3.68) and the belly (down $3.29). June lean hogs are down $1.85 at $89.57, July lean hogs are down $1.57 at $92.75 and August lean hogs are down $1.37 at $93.75. Pork cutouts totaled 342.50 loads with 313.93 loads of pork cuts and 28.57 loads of trim. Pork cutout values are down $1.47 at $76.85. Tuesday's slaughter is estimated at 481,000 head, 1,000 head more than a week ago and steady with a year ago. The CME Lean Hog Index for March 31: down $0.26, $75.20.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Even though pork cutout values closed lower, packers haven't shown much interest in the hog market this week and they'll likely need to procure more supplies come Wednesday.
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