GENERAL COMMENTS:
If there is a take away that the market can
learn from this week, it is that it's wise to not bolster the market
with sheer hopefulness and anticipation until the fine details are
printed and clear. Thankfully the market seems to be coming around after
Thursday's beatdown and is trading higher in both the lean hog and live
cattle markets. Hog prices are lower on the National Direct Afternoon
Hog Report, down $0.43 with a weighted average of $50.79. March corn is
up 13 3/4 cents per bushel and March soybean meal is down $0.00. The Dow
Jones Industrial Average is up 50.46 points and NASDAQ is up 31.81
points.
From Friday to Friday livestock futures scored
the following changes: February live cattle down $1.07, April live
cattle down $0.70; January feeder cattle down $2.25, March feeder cattle
down $2.45; February lean hogs down $0.42, April lean hogs down $0.02.
LIVE CATTLE:
No one ever wants to report steady trade when
the overall moral of the market is higher in the first quarter, but
that's where cash cattle prices landed this week -- and for good reason.
With the signing of the phase one trade agreement there was going to be
some level of emotion and ruthless reaction driven throughout the
marketplace one way or another. Secondly, with Friday's storm blasting
through most of cattle country, feeders wanted to get their pens of
ready fats cleaned out before they were discounted next week for packing
tags. Nevertheless, the cash cattle market closed fully steady this
week with cattle in the South trading at $123 to $124 and cattle in the
North traded at $197 to $200, which was $1.00 lower than last week's
weighted average in the North. Thankfully as cattlemen and traders roll
into next week, the board closed on a positive note. February live
cattle are up $0.22 at $126.35, April live cattle are up $0.82 at
$127.25 and June live cattle are up $0.35 at $119.20.
Closing boxed beef prices are higher: choice up
$1.27 ($214.17) and select up $1.28 ($212.75) with a movement of 97
loads (61.49 loads of choice, 9.86 loads of select, 9.91 loads of trim
and 15.90 loads of ground beef). Friday's slaughter is estimated at
116,000 head, down 4,000 head from a week ago and down 1,000 head from a
year ago. Saturday's slaughter is projected at 27,000 head.
TUESDAY'S CASH CATTLE CALL: Steady. The
marketplace will be closed Monday in respect to Martin Luther King Jr.
holiday, but that's OK -- as we know it's rare, if hardly ever, that fat
cattle sell early in the week.
FEEDER CATTLE:
Feeder cattle contracts were the most reluctant
to break loose and let most of the trade take prices higher. January
feeders are down $0.07 at $145.35, March feeders are up $0.17 at $145.00
and April feeders are up $0.07 at $147.87. In Ogallala Livestock
Auction in Ogallala, Nebraska 6,785 feeders sold and compared to last
week steers under 650 pounds sold $5.00 to $13.00 higher. Steers over
650 pounds sold stead to $2.00 higher. Heifers sold steady to $4.00
higher. The CME feeder cattle index 1/16/2020: down $0.61, $145.74.
LEAN HOGS:
Higher close on Friday? We will take it! As
buyers have seen buying opportunities since Wednesday and Thursday's
havoc on the futures market, the market came around to trade higher as
the bell's whistle closed. February lean hogs are up $0.80 at $67.67,
April lean hogs are up $0.32 at $74.10 and May lean hogs are down $0.02
at $80.70. Pork cutouts totaled 396.04 loads with 362.40 loads of pork
cuts and 33.64 loads of trim. Pork cutout values: up $0.02, $75.47.
Friday's slaughter is estimated at 464,000 head, 26,000 head less than a
week ago but 10,000 head more than a year ago. Saturday's slaughter is
projected to be around 120,000 head. The CME lean hog index 1/15/2020:
up $0.62, $60.15.
TUESDAY'S CASH HOG CALL: Steady. There are a lot
of variables up in the air as the market walks into a three-day
weekend, but knowing that it will be a shortened week will probably have
packers a little quicker to get to business than normal next week.
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| #completecalfcare |
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