GENERAL COMMENTS:
It was a mixed day for the livestock complex as the cattle sector was fully supported, but the lean hog complex saw mixed interest. The biggest news for the cattle complex was that dressed cattle prices jumped $6.00 higher again this week, surpassing last week's record-breaking trade. May corn is down 2 cents per bushel and May soybean meal is down $0.20. The Dow Jones Industrial Average is up 254.48 points and the NASDAQ is up 189.98 points.
Thursday's export report shared that beef net sales of 7,600 mt for 2025 were down 41% from the previous week and 42% from the prior 4-week average. The three largest buyers were Japan (6,600 mt), South Korea (1,900 mt) and Hong Kong (1,400 mt). Pork net sales of 24,200 mt for 2025 were down 30% from the previous week, but up 14% from the prior 4-week average. The three largest buyers were Mexico (9,900 mt), Japan (3,500 mt) and South Korea (3,000 mt).
LIVE CATTLE:
With the help of committed feedlot managers in the North, Northern dressed cattle prices didn't trade a mere $1.00 to $2.00 higher. Instead, dressed cattle traded throughout the day were marked at mostly $355, which is $6.00 higher than last week's weighted average. No new live cattle sales have surfaced from the South, but on Tuesday and Wednesday, Southern live cattle sold for mostly $219 to $220, which is $1.00 to $2.00 higher than last week's weighted average as well. But thanks to the added support from the fed cash cattle market, traders again advanced the live cattle contracts through Thursday's close. June live cattle closed $1.72 higher at $214.25, August live cattle $1.62 higher at $210.00 and October live cattle closed $1.30 higher at $207.47. A few more clean-up deals could surface, but the bulk of this week's business is likely done with. Asking prices for cattle left to trade in the South remain firm at $221 plus, and in the North at $356 plus.
Thursday's slaughter is estimated at 120,000 head -- steady with a week ago and 1,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $1.74 ($347.89) and select down $0.80 ($333.20) with a movement of 122 loads (62.82 loads of choice, 14.08 loads of select, 29.98 loads of trim and 14.98 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that trade has now developed in both regions, any more sales that develop are likely to follow the week's trend.
FEEDER CATTLE:
The feeder cattle complex grew stronger and stronger as the day traded on, as the market had more than enough support pouring into its sphere. Between the added support of the live cattle contracts' higher push, the stronger fed cash cattle prices and the continued buyer interest in sale barns across the country -- dare I say it was almost easy for traders to push the spot August contract to yet another new contract high? May feeders closed $3.02 higher at $297.47, August feeders closed $2.65 higher at $301.25 and September feeders closed $2.90 higher at $300.22. At Hub City Livestock Auction in Aberdeen, South Dakota, compared to last week, the best test was on steers weighing 800 to 849 pounds, which traded steady to $3.00 higher. Steers weighing 850 to 999 pounds sold $3.00 to $7.00 higher and steers weighing 1,000 to 1,049 pounds traded mostly steady. Heifers were not well tested in comparison. Feeder cattle supply over 600 pounds was 93%. The CME feeder cattle index 5/7/2025: up $2.37, $295.78.
LEAN HOGS:
The lean hog complex closed mixed, with most of the market's deferred contracts able to close slightly higher, but it was displeasing to see pork cutout values close lower yet again. June lean hogs closed $0.15 lower at $97.15, July lean hogs closed $0.77 higher at $100.25 and August lean hogs closed $0.60 higher at $98.52. Lower waning prices were simply the trend on the afternoon cutout report, but the rib took the biggest punch of the day as it closed $6.75 lower itself. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.00 with a weighted average price of $94.02 on 3,896 head. Thursday's slaughter is estimated at 484,000 head -- 1,000 head more than a week ago and 11,000 head more than a year ago. The CME lean hog index 5/6/2025: up $0.03, $90.16.
FRIDAY'S HOG CALL: Lower. At this point, packers have likely fulfilled the vast majority of their cash needs for the week.
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