GENERAL COMMENTS:
It was a fruitful day for the livestock complex as all three of the markets ended the day stronger. It was especially a big-hitting week for the cattle complex as traders pushed the contracts higher through Friday's close thanks to the added support of yet-again record-breaking cash cattle prices. May corn is down 3 cents per bushel and May soybean meal is up $3.70. The Dow Jones Industrial Average is up 587.69 points and NASDAQ is up 266.85 points.
From Friday-to-Friday, livestock futures scored the following changes: June live cattle up $2.85, August live cattle up $2.68; May feeder cattle up $4.43, August feeder cattle up $2.60; June lean hogs down $1.80, July lean hogs down $0.47; May corn down $0.18, July corn down $0.17.
LIVE CATTLE:
This week will go down in history as one of the most powerful weeks for the cattle complex ever. Between new contract highs in the futures and record-breaking fed cash cattle prices -- the market had enough support to make it all happen. But that's not to say everything was perfect as boxed beef prices showed some weakness and packers have drastically cut throughput in hopes of igniting some spark back into box prices and in trying to get a foothold on the cash cattle market. Nevertheless, the bulls took this week and ran with it and simply didn't look back. But I want to especially highlight that there has never been a time before when packers have been pressured by feedlot managers so much. Regardless of what packers want right now, feedlot managers are stern in their conversations and simply unwilling to yield to any opposition, which has partly been a catalyst as to why prices have advanced as rapidly as they have. And those feedlot managers earn a well-deserved round of applause -- because if it weren't for the cash cattle market's gusto right now, it's tough telling exactly what the rest of the market would be doing; but I doubt it would be this strong.
June live cattle closed $1.45 higher at $211.10, August live cattle closed $2.12 higher at $206.77, and October live cattle closed $2.25 higher at $204.47. Throughout the week, Southern live cattle traded at mostly $218, which is $5.00 to $6.00 higher than last week's weighted average and Northern dressed cattle traded at $350. which is $8.00 higher than the previous week's weighted average.
Friday's slaughter is estimated at 87,000 -- 5,000 head more than a week ago and 32,000 head less than a year ago. Saturday's slaughter is projected to be around 7,000 head. The week's total slaughter is estimated at 559,000 head -- 4,000 head more than a week ago and 62,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.27 ($342.90) and select up $1.07 ($325.35) with a movement of 101 loads (62.46 loads of choice, 17.56 loads of select, 7.20 loads of trim and 13.65 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Before we can call next week's market at these record-breaking prices, we need to see how many cattle packers were able to get bought this week and in what delivery option they committed them to.
FEEDER CATTLE:
It was also an invigorating day for the feeder cattle complex as the market had more than enough support to help the contracts close higher. May feeders closed $1.72 higher at $294.95, August feeders closed $2.45 higher at $296.90 and September feeders closed $2.70 higher at $295.55. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week feeder steers traded $7.00 to $11.00 higher and feeder heifers traded $5.00 to $8.00 higher. Steer calves old $9.00 to $15.00 stronger and heifer calves traded $5.00 to $10.00 higher. Slaughter cows sold $1.00 to $3.00 higher and slaughter bulls traded $4.00 stronger. Feeder cattle supply over 600 pounds was 71%. The CME Feeder Cattle Index 5/1/2025: up $0.28, $296.38.
LEAN HOGS:
With the added excitement in the cattle complex, the lean hog market was also able to rally as traders were eager to support the livestock contracts today and it was also helpful that pork cutout values perked-up ahead of the week's close. June lean hogs closed $1.17 higher at $99.35, July lean hogs closed $1.77 higher at $100.70 and August lean hogs closed $1.80 higher at $99.12. The biggest gains seen this afternoon in terms of the individual pork cuts was the butt's $9.03 jump, and then the rib's $5.44 jump. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.88 with a weighted average price of $91.51 on 2,308 head. Pork cutouts totaled 384.85 loads with 345.76 loads of pork cuts and 39.10 loads of trim. Pork cutout values: up $1.92, $98.38. Friday's slaughter is estimated at 480,000 head -- 5,000 head less than a week ago and 21,000 head more than a year ago. Saturday's slaughter is projected to be around 68,000 head. The CME Lean Hog Index 4/30/2025: up $0.32, $89.57.
MONDAY'S HOG CALL: Steady. With packers running faster chain speeds, it's likely that prices remain at least steady with the uptick in pork cutout values.
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