GENERAL COMMENTS:
The livestock complex has had a mundane day thus far as all three of the markets are trading lower and not much more has developed in the cash cattle market following Tuesday's action. More trade will need to develop ahead of the week's end but feedlot managers who have yet to sell seem comfortable waiting the week out to see what prices may surface later. May corn is down 3 1/4 cents per bushel and May soybean meal is up $3.00.
The Dow Jones Industrial Average is up 281.65 points and NASDAQ is down 58.84 points.
LIVE CATTLE:
After reaching new contract highs yet again just Tuesday, and following the light business that took place in the South at $218 to $220 which is steady to $2.00 higher than last week's weighted average, traders have grown cold to the live cattle complex as all its contracts are trading lower into Wednesday's noon hour. June live cattle are down $1.65 at $211.95, August live cattle are down $1.77 at $207.60 and October live cattle are down $1.42 at 205.45. More than anything it seems as though traders are cautious about overly supporting the complex more than they already have; traders could also be waiting to see what happens in the North for fed cash cattle trade. At this point only a few more cattle have sold in Texas for $219 which is steady with Tuesday's business, but otherwise no more cattle have sold. Asking prices in the South are noted at $220-plus but are still not fully established in the North.
Boxed beef prices are higher: choice up $1.43 ($346.10) and select up $0.94 ($333.91) with a movement of 67 loads (39.76 loads of choice, 6.68 loads of select, 8.82 loads of trim and 11.45 loads of ground beef).
FEEDER CATTLE:
Following in the same direction as the live cattle contracts, the feeder cattle market is trending lower into Wednesday's noon hour. May feeders are down $2.32 at $293.37, August feeders are down $2.17 at $297.10 and September feeders are down $2.05 at $295.82. And just like the live cattle complex, this lower move doesn't seem to be because of any rationale other than because traders are worried the market is overbought.
LEAN HOGS:
Without any rip-roaring, wild support stemming from the market's fundamentals, it's no surprise to see the lean hog complex trading lower again. June lean hogs are down $0.10 at $97.47, July lean hogs are down $0.22 at $99.17 and August lean hogs are down $0.40 at $97.72. And while pork cutout values may be up slightly, it currently isn't enough to help boost the morale of traders as their tone and sentiment is set on trading lower Wednesday.
The projected CME Lean Hog Index for 5/6/2025 is up $0.03 at $90.16, and the actual index for 5/5/2025 is up $0.27 at $90.13. Hog prices on the Daily Direct Morning Hog Report average $92.41, ranging from $88.00 to $96.75 on 2,540 head and a five-day rolling average of $92.28. Pork cutouts total 213.31 loads with 188.98 loads of pork cuts and 34.33 loads of trim. Pork cutout values: up $0.15, $95.85.
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