GENERAL COMMENTS:
It was a true whirlwind of a day as the livestock complex was challenged earlier today with the continued turmoil of tariffs, but ahead of today's close President Trump announced that tariffs will be paused for 90 days and substantially lowered effective immediately for nearly all countries except China, which had the tariff raised to 125%. This announcement positively spurred the livestock complex higher and helped the market end the day on an unexpectedly positive note. May corn is up 5 cents per bushel and May soybean meal is up $3.50. The Dow Jones Industrial Average is up 2,962.86 points.
LIVE CATTLE:
The live cattle complex enjoyed the fruitful afternoon rally which was spurred on by the positive announcement that most countries' tariffs would be delayed and drastically reduced. April live cattle closed $3.70 higher at $202.80, June live cattle closed $4.75 higher at $198.37 and August live cattle closed $4.55 higher at $195.00. The jump this afternoon helped the spot June contract close back above the market's 40-day moving average, which will continue to be a threshold on which the market closely monitors. Still no cash cattle trade has developed, but bids of $205 to $208 live were offered throughout the day in Nebraska, and live bids of $200 were offered in Texas. But with asking prices firm in the South at $208, feedlot managers and packers have a long way to go before they're going to see eye to eye this week.
Wednesday's slaughter is estimated at 123,000 head -- 1,000 head less than a week ago and 13,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.24 ($337.86) and select down $1.45 ($320.61) with a movement of 154 loads (108.71 loads of choice, 12.91 loads of select, 20.67 loads of trim and 12.03 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to somewhat lower. Given that over the last couple of weeks packers have been able to secure inventory and build supply up around them, they could likely keep the cash market from trading higher this week.
FEEDER CATTLE:
The feeder cattle complex didn't sleep on the tariff announcement this afternoon and leaped higher as traders were eager to find some positive encouragement in the marketplace. April feeders closed $3.32 higher at $283.75, May feeders closed $6.47 higher at $278.20 and August feeders closed $5.65 higher at $283.25. Thankfully the spot May contract was also able to again close above its 40-day moving average. At Winter Livestock Auction in Dodge City, Kansas compared to last week steers over 500 pounds and heifers over 550 pounds sold steady to $5.00 to $10.00 lower. And steers under 500 pounds and heifers under 550 pounds weren't well tested. Feeder cattle supply over 600 pounds was 79%. The CME feeder cattle index 4/8/2025: up $0.08, $290.61.
LEAN HOGS:
The lean hog complex also saw widespread support from traders following President Trump's announcement of tariff delays. June lean hogs closed $1.92 higher at $91.70, July lean hogs closed $2.07 higher at $91.27 and August lean hogs closed $1.47 higher at $89.32. But today's higher jump was solely technically driven as the market's fundamentals weren't helpful. The carcass price was again sucked lower as the ham closed $4.44 lower, and both the picnic and loin saw losses exceed $2.00. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.75 with a weighted average price of $86.08 on 2,418 head. Pork cutouts totaled 404.90 loads with 337.52 loads of pork cuts and 67.38 loads of trim. Pork cutout values: down $2.69, $90.76. Wednesday's slaughter is estimated at 487,000 head -- 2,000 head more than a week ago and 1,000 head more than a year ago. The CME lean hog index 4/7/2025: down $0.03, $88.16.
THURSDAY'S HOG CALL: Steady to somewhat lower. Packers could still need a few more hogs but it's not likely that they'll push cash prices higher.
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