GENERAL COMMENTS:
It was a mixed Tuesday for the livestock complex as the cattle contracts rallied throughout the day but the lean hog complex struggled technically. Some light cash cattle trade was reported in the South but the North didn't see any sales develop. May corn is up 1 cent per bushel and May soybean meal is down $2.60. The Dow Jones Industrial Average is down 389.83 points and NASDAQ is down 154.58 points.
LIVE CATTLE:
It was another prosperous day for the live cattle complex as the market again showed its fundamental strength as some light sales were reported in the Southern Plains at $218 to $220, which is steady to $2.00 higher than last week's weighted average. Given the market's norm here lately it's unusual to see cattle trading this early in the week; but packers continue to be short bought and to their advantage some feedlot managers were willing to let some cattle go to ensure they got their business done. At this point, no trade has developed in the North, but given the fact that sales have been reported in the South at steady/higher money, it's fully assumed that Northern cattle will trade in the same manner. June live cattle closed $0.02 higher at $213.67, August live cattle closed $0.30 higher at $209.37 and October live cattle closed $0.47 higher at $206.87. Asking prices remain firm in the South at $221-plus but are still not established in the North. Also of note: today's close in the spot June live cattle contract is yet another new contract high.
Tuesday's slaughter is estimated at 121,000 head -- 1,000 head more than a week ago and 2,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.10 ($344.67) and select up $4.90 ($332.97) with a movement of 117 loads (82.42 loads of choice, 14.42 loads of select, 10.36 loads of trim and 10.15 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. Given that packers seem almost anxious to get more cattle bought, I believe prices will have no trouble trading steady to mostly higher again this week.
FEEDER CATTLE:
All the feeder cattle contracts aside from the May contract were able to close mildly higher Tuesday afternoon. And more than anything it seemed as although traders are more concerned about how the August feeder cattle contract is trading as opposed to the May feeder cattle contract as there's more cumulative volume in the August contract. But aside from the slight dip in the May contract, traders continue to seem focused on strong buyer demand in the countryside, along with the helpful support of strong market fundamentals (boxed beef prices and fed cash cattle trade) already developing in this week's market. May feeders closed $0.37 lower at $295.70, August feeders closed $0.30 higher at $299.20 and September feeders closed $0.32 higher at $297.87. At Joplin Regional Stockyard in Carthage, Missouri, compared to last week feeder steers sold $5.00 lower to $5.00 higher, but feeder heifers under 525 pounds sold steady to $12.00 higher but the heavier weighted heifers did trade anywhere from $5.00 lower to $5.00 higher as well. The feeder cattle supply over 600 pounds was 56%. The CME Feeder Cattle Index 5/5/2025: up $0.38, $293.78.
LEAN HOGS:
The lean hog complex merely drifted lower throughout the day as the market wasn't able to gain any footing throughout Tuesday. The cash hog complex may have seen a sizeable volume trade and prices may have been higher -- but that wasn't enough to offset some of the pressure endured technically and pork cutout values closed lower too. June lean hogs closed $1.42 lower at $97.57, July lean hogs closed $1.00 lower at $99.40 and August lean hogs closed $0.80 lower at $98.12. The biggest deterrent in the carcass price's ability to close higher was the $3.29 decline in the loin, although minor losses were seen throughout most of the cuts.
Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.62 with a weighted average price of $93.58 on 9,540 head. Pork cutouts totaled 348.42 loads with 306.39 loads of pork cuts and 42.03 loads of trim. Pork cutout values: down $0.96, $95.70. Tuesday's slaughter is estimated at 485,000 head -- 3,000 head less than a week ago and 6,000 head more than a year ago. The CME Lean Hog Index 5/2/2025: up $0.18, $89.87.
WEDNEDSAY'S HOG CALL: Steady. Given that prices were higher Tuesday and a large volume sold, packers will probably need to be active and somewhat aggressive in the cash market for at least another day; but prices could simply remain steady.
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