GENERAL COMMENTS:
The live cattle complex isn't trading higher but that hasn't delayed any progress in the feeder cattle market thus far. Meanwhile, the lean hog complex is continuing to trade higher as well, as traders believe demand will keep the market well supported. May corn is up 2 3/4 cents per bushel and July soybean meal is up $0.30. The Dow Jones Industrial Average is up 247.72 points.
LIVE CATTLE:
The live cattle complex is trading mostly lower into Tuesday's noon hour as the market seems to catch its breath after Monday's aggressive sprint. As of this point, it is promising however to see that traders are respecting the market's previous resistance threshold at $175.50 and keep the market above that price point. If traders let the market close below that point, it will signal some weakness. June live cattle are down $1.15 at $176.92, August live cattle are down $0.82 at $175.52 and October live cattle are down $0.47 at $179.45. No cash cattle trade has developed and it's not likely that the market will see any trade unfold until Thursday or Friday. Bids and asking prices are still elusive, but feedlots are expected to price cattle higher this week.
Boxed beef prices are higher: choice up $3.69 ($299.62) and select up $0.74 ($292.61) with a movement of 71 loads (35.95 loads of choice, 12.58 loads of select, 5.15 loads of trim and 17.78 loads of ground beef).
FEEDER CATTLE:
Even with the live cattle contracts trading slightly lower, the feeder cattle complex has maintained its positive position and continues to trade higher into Tuesday's noon hour. The momentum that stemmed from Friday's lower placements was just the kick of encouragement that the market needed as it also ignited higher feeder cattle sales in the countryside. At this point, it's looking like the feeder cattle complex possesses enough support to potentially round out the day higher even without the live cattle market's support. May feeders are up $1.00 at $246.17, August feeders are up $0.90 at $259.40 and September feeders are up $1.35 at $260.72.
LEAN HOGS:
Even with the midday pork cutout values being doing notably, the lean hog complex is charging onward and hopes that the day's afternoon cutout price will lend the market support. June lean hogs are up $2.12 at $107.62, July lean hogs are up $1.77 at $109.45 and August lean hogs are up $1.97 at $106.92. The cash cattle market still hasn't seen much packer interest develop, but with the market's stronger tone and the continued aggressive pace in processing, packers could get more aggressive later this afternoon or likely on Wednesday.
The projected lean hog index for April 22 is up $0.14 at $91.45 and the actual index for April 19 is down $0.04 at $91.31. Hog prices on the Daily Direct Morning Hog Report average $91.01, ranging from $90.00 to $92.00 on 995 head and a five-day rolling average of $89.60. Pork cutouts total 133.48 loads with 122.71 loads of pork cuts and 10.77 loads of trim. Pork cutout values: down $3.39, $98.31.
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