GENERAL COMMENTS:
The cattle contracts dipped into new territory ahead of Wednesday's noon hour, but as the afternoon traded on, traders grew leery of overly supporting the contracts and let both the live cattle and feeder cattle contracts close sharply lower. Still no cash cattle trade has developed. May corn is up 2 1/2 cents per bushel and May soybean meal is down $0.50. The Dow Jones Industrial Average is down 89.37 points and the NASDAQ is up 136.73 points.
LIVE CATTLE:
Around midday Wednesday, it seemed as though traders were taking the live cattle contracts higher on a runaway freight train, but shortly after the noon hour passed, the train lost its traction as by the day's end, prices closed mostly $1.00 to $2.00 lower. So, what gives you ask? More than anything, it's likely that traders realized after midday boxed beef prices were lower that they were getting ahead of themselves and pushing the complex too aggressively without having the fundamental support necessary to do so, as still no fed cash cattle trade has developed and boxed beef prices have been wishy-washy. June live cattle closed $2.37 lower at $213.95, August live cattle closed $2.25 lower at $209.37 and October live cattle closed $1.95 lower at $206.50. Still no cash cattle trade has developed, but packer interest could improve by Thursday. Asking prices are noted in the South at $224 to $225 but are still not established in the North.
Wednesday's slaughter is estimated at 119,000 head, steady with a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.74 ($349.36) and select up $1.38 ($335.85) with a movement of 129 loads (80.52 loads of choice, 25.45 loads of select, 8.96 loads of trim and 13.59 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Packers were able to buy up some supply over the last two weeks, so there's a chance that prices merely hold steady this week.
FEEDER CATTLE:
The feeder cattle complex continued to follow in the live cattle market's wake throughout the day as it too closed sharply lower. May feeders closed $3.25 lower at $299.57, August feeders closed $4.02 lower at $301.97 and September feeders closed $4.07 lower at $300.97. But even though the feeder cattle contracts are leery to step out on their own and are merely trading along with whatever the live cattle contracts do, support remains ample in the countryside, which continues to be evidenced by the CME feeder cattle index's price. At Winter Livestock Auction in Dodge City, Kansas, compared to last week, steers over 600 pounds sold steady to $20.00 higher, and while heifers over 650 pounds weren't well tested, a softer undertone was noted. Slaughter cows sold steady to $2.00 higher. Feeder cattle supply over 600 pounds was 82%. The CME feeder cattle index 5/13/2025: up $0.01, $302.41.
LEAN HOGS:
Although the afternoon pork cutout values were able to close mildly higher, the lean hog complex treaded water throughout the day but wasn't able to accomplish much as its contracts closed lower, and so did cash prices. June lean hogs closed $0.65 lower at $98.85, July lean hogs closed $0.75 lower at $102.45 and August lean hogs closed $0.47 lower at $101.65. More than anything, the market's resistance pressure simply seems to be too much of a threshold for traders to tackle at this point. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.66 with a weighted average price of $93.61 on 3,989 head. Pork cutouts totaled 276.92 loads, with 230.61 loads of pork cuts and 46.31 loads of trim. Pork cutout values: up $0.11, $97.13. Wednesday's slaughter is estimated at 486,000 head -- 15,000 head more than a week ago and 9,000 head more than a year ago. The CME lean hog index 5/12/2025: up $0.39, $90.31.
THURSDAY'S HOG CALL: Lower. Without pork cutout values showing much support packers won't likely dive into the cash market wildly.
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