GENERAL COMMENTS:
It was a rallying day for the livestock contracts as all three of the markets were able to close fully higher. But some pressure could develop on Wednesday for the cattle contracts as boxed beef prices did close lower Tuesday afternoon and resistance levels are looming for both the live cattle and feeder cattle markets. May corn is down 2 cents per bushel and May soybean meal is down $1.10. The Dow Jones Industrial Average is down 527.16 points.
LIVE CATTLE:
It was a prosperous day for the live cattle complex as the market was able to round out the day fully higher. June live cattle closed $2.52 higher at $206.27, August live cattle closed $2.45 higher at $202.45 and October live cattle closed $2.25 higher at $200.47. The market could likely be pressured, however, on Wednesday given that the futures contracts are back to trading at resistance levels and given that boxed beef prices closed lower Tuesday afternoon. If traders are to take on the future complex's resistance, they're going to need fundamental support to be unwavering, so today's lower close in the boxes isn't supportive of that. Still no trade has developed in the cash cattle complex and will likely be delayed until Thursday or Friday.
Tuesday's slaughter is estimated at 123,000 head -- 1,000 head more than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.79 ($331.73) and select down $1.12 ($317.65) with a movement of 134 loads (78.82 loads of choice, 16.08 loads of select, 28.51 loads of trim and 10.45 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Packers advanced the market aggressively last week, which could be because they're sitting comfortably with supplies and won't need to procure cattle as aggressively this week.
FEEDER CATTLE:
The feeder cattle complex successfully kept its momentum through Tuesday's end as demand in the countryside is incredible. More than anything it's likely that buyers are keenly aware that supplies simply aren't as ample this year as they have been in years past. And, as the later buyers try to fill their orders ahead of going to grass, the more expensive turn-out cattle are likely to become. May feeders closed $1.40 higher at $286.92, August feeders closed $2.10 higher at $291.25 and September feeders closed $2.25 higher at $290.25. At Russell Livestock Auction in Russell, Iowa compared to their last sale two weeks ago, steers sold $6.00 to $33.00 higher, while heifers traded $12.00 to sharply higher. Feeder cattle supply over 600 pounds was 51%. The CME feeder cattle index 4/21/2025: down $0.52, $288.78.
LEAN HOGS:
The lean hog complex potentially had the best day of all the livestock contracts as its market was able to push a large break out in the spot June contract and was well-complimented by strong market fundamentals. June lean hogs closed $2.22 higher at $100.27, July lean hogs closed $2.02 higher at $100.27 and August lean hogs closed $1.35 higher at $98.22. Pork cutout values closed slightly lower – mainly because of a post-Easter drop in the rib (down $3.87) but cash prices were notably higher. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $6.41 with a weighted average price of $90.00 on 8,479 head. Pork cutouts totaled 336.37 loads with 310.62 loads of pork cuts and 25.75 loads of trim. Pork cutout values: down $0.61, $95.78. Tuesday's slaughter is estimated at 485,000 head -- 2,000 head less than a week ago and 3,000 head less than a year ago. The CME lean hog index 4/18/2025: up $0.25, $85.71.
WEDNESDAY'S HOG CALL: Steady. Packers need more hogs this week, and they'll likely be aggressive again in Wednesday's market.
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