Monday Closing Livestock Market Summary - Gains Throughout the Livestock Complex

GENERAL COMMENTS:

Ending Monday with a positive note, all three livestock markets close mostly higher as the buzz about the coronavirus could be fading to the background of the market's perspective. Cash prices are higher on the National Direct Afternoon Hog Report, up $0.55 with a weighted average of $53.13. March corn is down 2 1/2 cents per bushel and March soybean meal is down $1.20. The Dow Jones Industrial Average is up 143.78 points and NASDAQ is up 122.46 points.

LIVE CATTLE:

Live cattle prices ended the day on a successful note as contracts closed $0.30 to $1.05 higher throughout the complex. February live cattle are up $0.30 at $121.67, April live cattle are up $1.05 at $120.72 and June live cattle are up $0.42 at $112.00. It's still too early in the week for cash cattle trade to develop and virtually no cattle were called upon Monday afternoon. Feeders have yet to place their asking prices and packers are giving them time, not pressing the envelope too early.

Boxed beef prices are lower: choice down $1.44 ($211.56) and select down $3.24 ($207.42) with a movement of 103 loads (74.61 loads of choice, 15.58 loads of select, 4.22 loads of trim and 8.71 loads of ground beef). Monday's slaughter is estimated at 121,000 head, 1,000 head less than a week ago and 3,000 head more than a year ago.

TUESDAY'S CASH CATTLE CALL: Steady. Until there's a good feel for the market's comfortableness and understanding of the coronavirus, there is still the chance that the week's market could be subject to the nervousness of the virus, but then again, the hype surrounding the virus could have already ran its course.

FEEDER CATTLE:

Feeder cattle markets had a varying day with contracts being higher, and then lower and then changing again to end the day with some significant position acquired. March feeders are up $0.57 at $136.65, April feeders are up $0.82 at $138.35 and May feeders are up $1.10 at $140.80. Seeing that the board traded all over, there's a sense of volatility still in the cattle contracts that makes the entire marketplace uncertain. The CME feeder cattle index 1/31/2020: down $0.40, $141.98.

LEAN HOGS:

The cattle contracts are having a rough time establishing a direction but the cash markets backing behind the lean hog market is helping the market push higher. February lean hogs closed $0.82 lower at $56.30, April lean hogs closed $1.12 higher at $62.72 and May lean hogs closed $1.22 higher at $71.25. Seeing the steady slow gain on the cash market is helping building support throughout much of the complex. Monday's slaughter is estimated at 496,000 head, 2,000 head less than a week ago and 27,000 head more than a year ago. Pork cutouts totaled 328.31 loads with 293.14 loads of pork cuts and 35.16 loads of trim. Pork cutout values: up $0.27, $69.84. The CME lean hog index 1/30/2020: down $0.42, $62.36.

TUESDAY'S CASH HOG CALL: Steady. Seeing that the market had a successful day posting gains on both the future's market and throughout the cash market, the market could very easily take a day and build on those gains again especially seeing that cattle contracts are more cautious at this time.

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