GENERAL COMMENTS:
The livestock complex once gained ended the day mixed with the cattle contracts closing higher while the hog contracts trailed lower. Traders remain hopeful that when the cash market trades, it could potentially hold steady if not push a tick higher and give the market the fundamental support it isn't desiring. May corn is down 3 1/4 cents per bushel and May soybean meal is up $3.50. The Dow Jones Industrial Average is up 275.88 points and the NASDAQ is up 187.42 points.
Thursday's export report shared that beef net sales of 17,400 mt for 2026 were up 47% from the previous week and 36% from the prior 4-week average. The three largest buyers were South Korea (6,100 mt), Japan (6,100 mt) and Mexico (1,100 mt). Pork net sales of 31,300 mt for 2026 were down 41% from the previous week and 14% from the prior 4-week average. The three largest buyers were Mexico (14,700 mt), Japan (3,700 mt) and South Korea (1,800 mt).
LIVE CATTLE:
The live cattle complex gained more strength as the day traded on through closing time, and the complex was even able to secure a mildly higher position by the day's end. More than anything, today's uptick stems from traders' hope that the market will see greater fundamental support in this week's fed cash cattle market. No cash cattle trade has developed yet, so all eyes will be on Friday's market to see how the cash sector pans out. April live cattle closed $0.77 higher at $249.77, June live cattle closed $1.27 higher at $247.20 and August live cattle closed $0.92 higher at $243.35. Do note that again today select prices closed higher than choice prices, highlighting once again how deprived the market is of lean meat.
Thursday's slaughter is estimated at 105,000 head, steady with a week ago and 9,000 head less than a year ago.
Thursday's WASDE report showed a mixed outlook for the cattle and beef markets of 2026. Beef production for 2026 was decreased by 20 million pounds as harvest speeds are lighter than anticipated. Following last month's increase in the quarterly steer price projections, none of the quarters changed this month as prices are expected to remain steady with last month. Steers in the second quarter of 2026 are expected to average $241, steers in the third quarter are expected to average $242 and steers in the fourth quarter are expected to average $245. Beef imports grew by 115 million pounds, but beef exports fell by 30 million pounds.
Boxed beef prices closed mixed: choice up $1.43 ($381.09) and select down $0.70 ($381.57) with a movement of 145 loads (105.70 loads of choice, 5.94 loads of select, 10.25 loads of trim and 22.81 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. With the board being supportive, and feedlot managers comfortable in holding out until Friday to trade cattle, I think there's a chance that prices may hold steady, if not trade a tick higher.
FEEDER CATTLE:
At Clovis Livestock Auction in Clovis, New Mexico, compared to last week, steer calves weighing 550 to 600 pounds sold $20.00 higher. Heifer calves sold $10.00 to $20.00 higher. Slaughter cows sold $1.00 to $7.00 stronger and slaughter bulls sold $2.00 to $10.00 higher. Feeder cattle supply over 600 pounds was 54%. The CME feeder cattle index 4/8/2026: down $0.45, $364.10.
LEAN HOGS:
Pork cutout values were a tick higher throughout the day, but that wasn't enough support to convince traders that the contracts should change their direction and scale higher. April lean hogs closed $0.47 higher at $90.67, June lean hogs closed $0.52 lower at $104.12 and July lean hogs closed $0.77 lower at $106.92. Hog prices averaged $89.92 on the Daily Direct Afternoon Hog Report, with 332 head being traded and the market's five-day rolling average now sitting at $90.47. Pork cutouts totaled 268.60 loads with 219.64 loads of pork cuts and 48.96 loads of trim. Pork cutout values: up $0.47, $97.38. Thursday's slaughter is estimated at 495,000 head, 2,000 head more than a week ago and 8,000 head more than a year ago. The CME lean hog index 4/7/2026: up $0.24, $90.30.
Thursday's WASDE report showed a mixed outlook for the hog and pork markets of 2026. Pork production for 2026 was decreased by 300 million pounds as slaughters have been lighter than originally anticipated, and the latest Quarterly Hogs and Pigs report showed that farrowing intentions are lighter for the rest of the year. The quarterly price projections for hogs, unfortunately, saw a decrease in the second and third quarters of the year. Hogs in the second quarter are now expected to average $72 (down $2.00 from last month), hogs in the third quarter are expected to average $75 (down $2.00 from last month) and hogs in the fourth quarter are expected to average $65 (unchanged from last month). Pork imports for 2026 increased by 5 million pounds, and pork exports grew by 15 million pounds.
FRIDAY'S HOG CALL: Lower. At this point, packers aren't likely to show the cash market much more interest.
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