Monday's lean hog 418,000 head kill was a little under our initial 428,000 head estimate. In live cattle, with larger showlists starting out the week, due to the lower volume of sales on Friday, the trade should take a negative view on cash cattle pricing.
Cash hogs posted gains today of $0.50 to $1.00. USDA’s limited gathering of cash hog trading noted gains of $3 today. As with the cattle we would expect some type of revision to USDA’s slaughter estimate for hogs from today’s initial 430,000 finding.
Cattle futures stepped back today as the trade’s high hopes for Friday’s cash cattle trading failed to materialize. In hogs, Tuesday was the first full trading day with April as the true front month contract.