GENERAL COMMENTS:
The entire marketplace was pressured Tuesday as external weight bore down on the market and as traders long for something supportive to come along this week. But, even so, all three of the livestock markets closed lower. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.15 with a weighted average of $67.08 on 10,074 head and a five-day rolling average of $67. July corn is up 1/4 cent per bushel, and July soybean meal is down $2.40. The Dow Jones Industrial Average is down 344.57 points.
LIVE CATTLE:
The live cattle complex chopped sideways throughout the day, seeming unwilling to do much of anything amid the pressures that are looming outside of the cattle complex. Traders will need a clear signal from the market's fundamentals to pull the contracts out of the sluggish slide in which they're currently trading. June live cattle closed $0.52 lower at $164.02, August live cattle closed $0.50 lower at $162.95 and October live cattle closed $0.50 lower at $166.97. A sole bid of $172 was offered by one hopeful packer who was hoping that someone would be nervous and sell cattle early. Thankfully, feedlots weren't keen on the idea of trading cattle on a Tuesday and let the bid grow cold. Asking prices are noted at $176 in the South and are still unestablished in the North.
Tuesday's slaughter is estimated at 128,000 head -- steady with a week ago but 2,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.51 ($307.63) and select down $1.08 ($287.62) with a movement of 141 loads (91.15 loads of choice, 29.10 loads of select, 6.65 loads of trim and 14.50 of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Feedlots will be pressured to sell cattle cheaper this week, as packers will try to use the futures market's weakness as leverage against feedlots. But if feedlots can remain focused on the market's true fundamentals, they'll be more likely to fight for steady/higher prices.
FEEDER CATTLE:
The feeder cattle complex kept with its downward slide as traders seem fixated on external pressure and the lack of immediate market support. Yes, corn prices closed steady to $0.01 higher, but that's not the reason why the feeder cattle contracts closed lower. Traders will need either strong fundamental backing in the form of higher cash cattle trade or strong support from the live cattle contracts to pull them out of this sluggish lapse. May feeders closed $1.32 lower at $209.42, August feeders closed $0.17 higher at $229.50 and September feeders closed $0.12 lower at $231.87. The CME feeder cattle index 4/24/2023: down $0.98, $201.26.
LEAN HOGS:
The lean hog complex closed mixed with most nearby contracts closing lower while deferred contracts closed slightly higher. It was supportive to see that packers were somewhat in need of hogs, as cash prices did close higher, and packers did buy over 10,000 head in today's cash market. Pork cutout values closed lower but only mildly so, which shouldn't hurt Wednesday's market too badly. The cuts closed mixed across the board with the biggest loss seen in the picnic, as it fell $2.77. But the biggest gain was seen in the butt, as it jumped $3.01. Pork cutouts totaled 403.32 loads with 337.82 loads of pork cuts and 65.50 loads of trim. Pork cutout values are down $0.27 at $78.41.
Tuesday's slaughter is estimated at 476,000 head -- 8,000 head less than a week ago and 3,000 head less than a year ago. The CME Lean Hog Index for April 21: down $0.13, $71.18.
WEDNESDAY'S HOG CALL: Steady/somewhat higher. Packers needed hogs, which is the reason cash prices jumped slightly. Wednesday's market could see similar demand.
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