GENERAL COMMENTS:
Cash prices took a turn lower Friday afternoon and given the long wait throughout the day one would have thought that feeders were going to rally together and demand higher prices, but cash cattle traded lower again this week. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.18 with a weighted average of $50.01. March corn is up 4 1/4 cents per bushel and March soybean meal is up $1.10. The Dow Jones Industrial Average is down 277.26 points and NASDAQ is down 51.64 points.
From Friday to Friday livestock futures scored the following changes: February live cattle down $0.05, April live cattle up $0.13; March feeder cattle up $0.88, April feeder cattle down $0.03;
February lean hogs down $0.02, April lean hogs up $4.65.
LIVE CATTLE:
Friday's cash cattle trade didn't develop as expected. Feeders were sitting in a fine position to push packers to give more for cattle but moderate trade has developed in the South at $121, $1.00 lower than last week's weighted average and dressed cattle in the North have developed at $193, which is roughly $2.00 lower than last week's weighted average in the North. Some of the cattle bought earlier Friday afternoon were bought for the week of Feb. 17. On a positive note, the board did close mostly higher (not by much, but at this stage of the downward tumble higher is higher). February live cattle closed $0.20 higher at $121.32, April live cattle closed $0.05 higher at $119.80 and June live cattle closed $0.10 at $111.27. Friday's slaughter is estimated at 115,00 head, 7,000 head less than last week and 1,000 head more than a year ago. Saturday's slaughter is projected to be around 30,000 head.
Boxed beef prices closed lower: choice down $0.81 ($210.12) and select down $2.07 ($203.89) with a movement of 130 loads (61.16 loads of choice, 17.22 loads of select, 29.67 loads of trim and 22.33 loads of ground beef).
MONDAY'S CASH CATTLE CALL: Steady. Seeing that trade is still happening makes it hard to guess next week's performance. A lot of next week depends on how many packers get bought this week. If they can buy a significant amount, then prices will most likely continue to be steady to somewhat lower. But if packers aren't able to buy enough this week, prices could be slightly better.
FEEDER CATTLE:
Feeder cattle markets closed lower in both nearby and deferred contracts. Seeing that fat cattle prices ended up trading lower, there was little room for the complex to build support and push prices higher through closing. March feeders closed $0.70 at $135.20, April feeders closed $0.07 at $137.50 and May feeders closed $0.47 lower at $139.57. On Thursday in Mitchell Livestock Auction at Mitchell, South Dakota, 4,743 head of feeders sold and compared to last week feeder steers up to 850 pounds sold $1.00 to $4.00 higher, steers over 850 pounds sold steady to $3.00 higher. Feeder heifers up to 650 pounds sold $1.00 to $3.00 higher, heifers over 650 pounds sold steady to $2.00 lower. The CME feeder cattle index 2/6/2020: down $0.90, $140.63.
LEAN HOGS:
The lean hog complex kept its steam through closing and rallied significantly in the later part of the week. February lean hogs closed $0.60 lower at $57.10, April lean hogs closed $1.37 higher at $66.25 and May lean hogs closed $1.55 higher at $74.85. Pork cutouts totaled 346.00 loads with 301.17 loads of pork cuts and 44.83 loads of trim. Pork cutout values are down: $0.54, $64.81. Friday's slaughter is estimated at 492,000 head, which is 8,000 head more than last week and 43,000 head more than a year ago. The CME lean hog index for 2/5/2020: down $0.53, $60.44.
MONDAY'S CASH HOG CALL: Slightly higher. Seeing that China is interested in continuing trade, and as of now holding true to commitments, is significant. With the board responding in a favorable manner, cash prices may have the chance to capture some higher trading days throughout the week.
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