DTN Midday Livestock Comments          04/25 12:29

   Feedlot Managers Pressure Packers to Pay More 

   Bids of $210 to $212 have surfaced in the South but still no cattle have 
traded. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The live cattle complex is on edge, trying to be patient while packers and 
feedlot managers again go toe-to-toe this week. Bids have surfaced in Kansas at 
$210 to $212, but with feedlot managers firm in their asking prices of $214 to 
$215 in the South and $340-plus in the North -- packers are going to need to up 
their ante if they're going to get cattle bought this week. May corn is up 1 
1/4 cents per bushel and May soybean meal is up $1.10. The Dow Jones Industrial 
Average is up 12.07 points and NASDAQ is up 219.98 points. 

LIVE CATTLE:

   The live cattle complex has been rocked back on its heels as traders try to 
patiently wait for this week's cash cattle trade to develop -- but their 
patience is running thin. It's assumed cash cattle prices will trade higher 
this week -- which traders loved the idea of as stronger cash prices will 
complement their push of the contracts this past week; but they also don't want 
to put the cart before the horse anymore and anticipate in good faith too much. 
June live cattle are down $0.20 at $207.82, August live cattle are down $0.17 
at $203.92 and October live cattle are down $0.15 at $201.87. More than 
anything traders seem to be holding the contracts just shy of steady until 
developments in the cash market surface. Bids of $210 to $212 have been 
reported in Kansas -- but feedlot managers in the South are firm in their 
asking price of $214 to $215. Packer bids are going to need to improve. Asking 
prices are firm in the North at $340 plus.

   Boxed beef prices are higher: choice up $1.46 ($335.15) and select up $3.04 
($319.39) with a movement of 41 loads (29.37 loads of choice, 6.36 loads of 
select, zero loads of trim and 5.36 loads of ground beef).

FEEDER CATTLE:

   The spot August feeder cattle contract is inching, slowly but surely, up to 
the market's resistance as the August contract is currently trading at $293.35 
and the market's resistance threshold is at $293.70. Given the grandiose 
support the market has seen this past week in the countryside for both feeder 
cattle and calves -- it's tough to say the market doesn't possess enough 
support to challenge resistance. But traders seem to be holding out, waiting to 
see what type of punch comes with this week's fed cash cattle trade. If prices 
are $1.00 or $2.00 higher than last week's jump, then there's a chance traders 
could pressure that threshold ahead of the week's close. But if prices hold 
merely steady, then there's just as likely a chance traders will throw in the 
towel and say, "That's a problem for next week to figure out" and let the 
complex close just below resistance. May feeders are up $0.45 at $289.52, 
August feeders are up $0.75 at $293.35 and September feeders are up $0.77 at 
$292.55.

LEAN HOGS:

   Following the last couple days where the lean hog complex endured some 
pressure, traders are treating the market to a sporty rally Friday morning 
which is being well complemented as both cash prices and pork cutout values are 
higher. June lean hogs are up $1.00 at $100.92, July lean hogs are up $0.80 at 
$100.85 and August lean hogs are up $0.67 at $98.97. Traders have already 
broken through the market's resistance, so it's likely they'll maintain this 
rally through the day's end.

   The projected CME Lean Hog Index for 4/24/2025 is up $0.27 at $87,54, and 
the actual index for 4/23/2025 is up $0.52 at $87.27. Hog prices are higher on 
the Daily Direct Morning Hog Report, up $1.52 with a weighted average price of 
$91.74, ranging from $88.00 to $94.00 on 1,601 head and a five-day rolling 
average of $90.40. Pork cutouts total 315.16 loads with 284.82 loads of pork 
cuts and 30.34 loads of trim. Pork cutout values: up $1.78, $95.86.

    

   ShayLe Stewart can be reached shayle.stewart@dtn.com




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