The lean hog market has tactfully gained on both deferred contracts and in the cash market while cattle contracts lose ground Monday morning. Seeing that last week's cash cattle trade didn't end favorably to cattle feeders, makes it hard for contracts to build support early in the week. March corn is down 3 3/4 cents per bushel and March soybean meal is up $3.90. The Dow Jones Industrial Average is up 38.16 points and NASDAQ is up 48.47 points.
LIVE CATTLE
As Monday progresses live cattle contracts fall lower with nearby contracts trading right around $1.00 lower and deferred contracts not far behind. February live cattle are down $0.90 at $120.42, April live cattle are down $1.02 at $118.77 and June live cattle are down $0.75 at $110.52. Asking prices have yet to be determined for the week and with winter weather blowing into parts of cattle country, trade may not be favorable again this week. Not to mention, some of the cattle bought last week were both for next week's delivery.
Formula totals for last week were higher in Texas, somewhat higher in Kansas, but lower in Nebraska: Kansas 84,595(up 424), Nebraska 56,814(down
4,786), Texas 75,725(up 2,902). Total trade volume was lower in all three major feeding states: Kansas 100,223(down 1,253), Nebraska 77,482(down 877), Texas 78,853(down 1,589). New showlists appear to be mixed, somewhat larger in Texas, somewhat smaller in Kansas and lower in Nebraska/Colorado.
Boxed beef prices are mixed: choice down $1.02 ($209.10) and select up $0.10 ($203.99) with a movement of 41 loads (19.03 loads of choice, 14.71 loads of select, 0 loads of trim and 7.44 loads of ground beef).
FEEDER CATTLE
With winter weather setting into feeding country, and fat cattle prices weakening in the cash market, the feeder cattle market opens to a depressed market. March feeders are down $0.32 at $134.87, April feeders are down $0.77 at $136.72 and May feeders are down $0.72 at $138.85. Thankfully feeders aren't faced with higher corn prices at the moment but for the meantime this steady/sideways trading seems to be where the market is comfortable at.
LEAN HOGS
The lean hog market is trading on both sides of steady as nearby contracts struggle to trade higher while deferred contracts trade $0.25 to $0.50 stronger with ease. February lean hogs are down $0.70 at $56.40, April lean hogs are down $0.77 at $65.47 and May lean hogs are down $0.22 at $74.62. Seeing that morning cash prices and cutout values are higher is a good signal for the lean hog market and could help turn nearby contracts into turning higher as time progresses.
The projected lean hog index for 2/7/2020 is down $1.12 at $58.46, and the actual lean hog index for 2/6/2020 is $59.58, down $0.87. Hog prices are higher on the National Direct Morning Hog Report, up $0.68 with a weighted average of $50.90, ranging from $44.00 to $53.50 on 4,549 head sold and a five-day rolling average of $51.79. Pork cutouts total 170.54 loads with 143.90 loads of pork cuts and 26.65 loads of trim. Pork cutouts values: up $3.37, $68.18.
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