Last week may have been the official start to the 2020 market but given that this week is the first full trading week brings its own sense of excitement as cattle contracts soar higher and lean hog contracts look forward to the signing of the phase one trade agreement next week. March corn is down 1 1/4 cents per bushel and March soybean meal is up $2.70. The Dow Jones Industrial Average is down 67.03 points and NASDAQ is up 8.96 points.
LIVE CATTLE
Cattlemen are overjoyed with the market's early performance and pray that this season of strong demand, vigorous slaughter, and gaining cash prices will last well throughout the first quarter. It's obvious that traders are clocked back in and looking to no doubt invest in the cattle contracts. February live cattle are up $2.40 at $127.15, April live cattle are up $2.27 at $127.97 and June live cattle are up $1.85 at $119.52. Feeders are expected to push for stronger cash prices once again this week as they know that readily-available supplies are getting slimmer. New show lists appear to be higher in Nebraska/Colorado, somewhat smaller in Kansas, and lower in Texas.
Boxed beef prices are higher: choice up $1.65 ($210.14) and select up $0.98 ($206.37) with a movement of 89 loads (57.33 loads of choice, 9.28 loads of select, 16.51 loads of trim and 6.01 loads of ground beef).
FEEDER CATTLE
Having an exuberant Monday, feeder cattle contracts jump higher. Nearby contracts are seeing the biggest gains, though deferred contracts are having a significant rally of near $2.00 advancements. January feeder cattle are up $4.27 at $147.62, March feeders are up $4.00 at $146.67 and April feeders are up $3.42 at $148.95. Sale barns are back to their normal schedules this week and are expected to have massive runs of feeders to sell since the market has been quiet the last two weeks. Since feeder cattle haven't traded in weeks, prices are expected to be higher.
LEAN HOGS
Lean hog contracts started the day lower but have since built up some interest and are trading mildly higher. Producers are most watchful for news about the phase one trade agreement and look forward to what that agreement might bring to hog marketing opportunities. February lean hogs are up $0.30 at $68.85, April lean hogs are $0.02 at $75.17 and May lean hogs are up $0.02 at $81.42.
The projected lean hog index for 1/3/20 is up $0.57 at $59.19, and the actual for 1/2/20 is at $58.62, up $0.89. Hog prices are lower on the National Direct Morning Hog Report, down $0.44 with a weighted average of $50.07, ranging from $45.00 to $50.50 on 3,315 head sold and a five-day rolling average of $50.11. Pork cutouts total 166.43 loads with 145.18 loads of pork cuts and 21.24 loads of trim. Pork cutout values: up $0.45 at $74.67.
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