GENERAL COMMENTS:
Prices went up in the early part of the week and are now going down as we look to wrap another trading week up. The livestock complex traded lower and the cash markets were steady to lower, except for feeder cattle prices that are being elevated by a shortage of supply in some weight brackets. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.54 with a weighted average of $49.81. March corn is down 2 cents per bushel and March soybean meal is down $0.10. The Dow Jones Industrial Average is down 128.05 points and NASDAQ is down 66.22 points.
LIVE CATTLE:
Live cattle contracts were quick to back down from the $121 resistance plane Thursday morning and have yet to recover. February live cattle are down $1.20 at $120.10, April live cattle are down $1.65 at $119.15 and June live cattle are down $1.37 at $110.92. Timing isn't ideal for feeders who were hoping to get $2.00 higher this week on cash cattle deals. Some trade developed in parts of the North Thursday morning at $119 to $120, fully steady to $1.00 stronger than last week's weighted average. Packers are in a prime position as feeding weather is ideal for cattle and knowing that there is a plethora of cattle to be harvested in the next six months.
Boxed beef cutouts are lower: choice down $1.07 ($204.50) and select down $0.16 ($201.60) with a movement of 177 loads (133.76 loads of choice, 16.56 loads of select, 7.64 loads of trim and 19.19 loads of ground beef). Thursday's slaughter is estimated at 122,000 head, 1,000 head more than a week ago and 7,000 head more than a year ago.
FRIDAY'S CASH CATTLE CALL: Steady to $1.00 higher. Feeders could see prices inch up ever so slightly because packers need cattle, but they aren't going to be able to be greedy as packers hold the market's leverage right now.
FEEDER CATTLE:
Most of the feeder cattle complex closed lower, ranging anywhere from $0.50 to $1.10 lower on most contracts. March feeders closed $0.02 higher at $140.80, April feeders closed $0.50 lower at $142.52 and May feeders closed $0.80 lower at $143.57. Unlike the live cattle market, the feeder cattle market has the advantage of a strong demand for calves right now, and in time the market should only increase with the few remaining calves left in the countryside to sell this spring. On Wednesdaym at Torrington Livestock Auction in Torrington, Wyoming, 3,757 head of feeders sold, and in comparison to last week steer calves sold unevenly steady with the exception of steer calves weighing over 650 pounds, which sold $3.00 to $8.00 higher. Heifers calves also traded unevenly steady except for heifers that weighed over 650 pounds and traded $2.00 higher. The market was very active and the nice weather helped increase interest from local buyers as well as folks looking to put calves into feedlots. The CME feeder cattle index 2/19/2020: not available at this time.
LEAN HOGS:
The lean hog market was able to pull itself out of the downward trap Thursday afternoon. The board closed lower, cash closed lower and little else was exciting. April lean hogs closed $0.70 lower at $66.87, May lean hogs closed $0.82 lower at $74.47 and June lean hogs closed $1.22 lower at $81.95. Pork cutouts totaled 289.35 loads with 264.34 loads of pork cuts and 25.01 loads of trim. Pork cutout values: up $0.43, $64.44. Thursday's slaughter is estimated at 492,000 head, 2,000 head more than a week ago and 17,000 head more than a year ago. The CME lea hog index 2/18/2020: down $0.12, $55.54.
FRIDAY'S CASH HOG CALL: Slightly lower. Although packers were aggressive earlier in the week, with a down board they may not be as eager to buy more hogs in the later part of the week.
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