GENERAL COMMENTS:
The livestock complex has been blessed with ample support Monday morning, which has allowed the contracts to thrive and trade higher into Monday's noon hour. As long as the equity market continues to show a positive direction, it's likely the livestock complex will continue to trend higher. May corn is down 4 1/2 cents per bushel and May soybean meal is down $3.70. The Dow Jones Industrial Average is up 146.61 points
LIVE CATTLE:
The livestock complex is continuing to rally following the boost of support the market received late last week. April live cattle are up $1.12 at $203.60, June live cattle are up $1.52 at $198.32, and August live cattle are up $1.27 at $195.12. The spot June contract even broke above its 40-day moving average, which will be a threshold we need to monitor not only throughout the rest of the day, but likely through the week's end. No bids or asking prices have surfaced in the cash cattle market, but trade will likely develop earlier this week as the market will be closed on Friday for Good Friday ahead of Easter Sunday.
Last week Southern live cattle traded at $204 which is $4.00 lower than the previous week's weighted average and Northern dressed cattle traded at mostly $328 which is $9.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 52,705 head. Of that 76% (40,118 head) were committed to the nearby delivery while the remaining 24% (12,587 head) were committed to the deferred delivery.
Boxed beef prices are higher: choice up $1.39 ($335.61) and select up $1.22 ($315.18) with a movement of 51 loads (36.58 loads of choice, 4.26 loads of select, 3.17 loads of trim and 6.59 loads of ground beef).
FEEDER CATTLE:
The live cattle complex may be trading higher but the feeder cattle contracts are trading in a bolder manner as traders push the feeder cattle contracts $1.00 to $2.00 higher with ease. April feeders are up $2.42 at $287.55, May feeders are up $2.05 at $280.67, and August feeders are up $2.47 at $286.15. Traders are close to reaching the gap that was created when the tariff news broke, which could be a bit of a technical hurdle; but at this point traders don't seem concerned about the pressure that may be ahead for the market.
LEAN HOGS:
The lean hog complex is also trading higher as it continues to see tremendous trader support which has actually helped the spot June contract fill in the gap made two weeks ago when news broke regarding tariffs. June lean hogs are up $1.72 at $95.05, July lean hogs are up $1.92 at $95.52, and August lean hogs are up $1.80 at $93.70. Monday's move has been solely a technical decision as there hasn't been enough time for traders to see what's developing fundamentally yet. As long as traders continue to see broad support from external factors such as the equity markets, this higher trend should be sustainable through the day's close.
The projected CME Lean Hog Index for 4/11/2025 is down $0.86 at $86.00 and the actual index for 4/10/2025 is down $0.81 at $86.86. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.46 with a weighted average price of $83.50, ranging from $76.00 to $85.00 on 1,883 head and a five-day rolling average of $86.32. Pork cutouts total 131.84 loads with 117.49 loads of pork cuts and 14.35 loads of trim. Pork cutout values: up $2.44, $94.40.
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