GENERAL COMMENTS:
Cattle contracts thankfully closed higher, but it comes as a mixed bag as cash prices fell lower again Wednesday afternoon and dropped weekly prices to as much as $3.00 lower compared to last week. However, seeing traders interested in the cattle contracts is positive as it's been a long and bumpy road with the last couple of weeks of downward trade. Hog prices are lower on the National Direct Afternoon Hog Report, down $1.53 with a weighted average of $48.34. March corn is up 3 1/4 cents per bushel and March soybean meal is up $0.90. The Dow Jones Industrial Average is up 275.08 points and NASDAQ is up 87.02 points.
LIVE CATTLE:
The cattle market is mixed as the future's board closes higher, but cash cattle continue to sell lower and lower. February live cattle closed $0.12 lower at $118.95, April live cattle closed $0.67 higher at $117.85 and June live cattle closed $0.80 higher at $109.92. Seeing prices keep their strength through closing helps boost the market's attitude towards cattle contracts. Adversely, cash cattle prices dipped lower yet again on Wednesday afternoon as moderate trade developed in the South at $118 to $119, $1.00 to $2.00 lower than Tuesday, but $2.00 to $3.00 lower than last week. Some live trade surfaced in the North at $119, which was steady to $1.00 lower than Tuesday, but $3.00 lower than last week's weighted average.
Boxed beef prices are mixed: choice down $1.52 ($206.31) and select down $0.77 ($205.30) with a movement of 124 loads (87.07 loads of choice cuts, 14.43 loads of select cuts, 3.93 loads of trim and 18.43 loads of ground beef). Wednesday's slaughter is estimated at 120,000 head, 2,000 head less than last week and 11,000 head more than a year ago.
THURSDAY'S CASH CATTLE CALL: Lower. Packers will always buy cattle when they can get them for lower prices and it wouldn't be surprising to see some cattle trade with time if packers have the pen room for them.
FEEDER CATTLE:
Feeder cattle prices held strong through closing and boosted moral in the process. March feeders are up $0.37 at $135.05, April feeders are up $0.45 at $137.17 and May feeders are up $0.57 at $139.05. Much of cattle country still is struggling with winter weather conditions this week, making feeding and day to day processes longer and more tedious. On Tuesday, at Miles City Livestock Commission in Miles City, Montana, 1,267 feeders sold and compared to last week's sale; steers calves weighing less than 500 pounds showed steady undertones. Steers weighing 500 to 599 pounds there the sales best offering which sold mostly $2.00 higher. Heifers weighing 500 to 549 pounds sold mostly $5.00 higher. Feedlot ready cattle sold on stronger demand this week as quality was mostly attractive. The CME feeder cattle index for 2/11/2020: not available at this time.
LEAN HOGS:
A little bit of steam melted out of the lean hog market as cash prices fell and nearby contracts gave up some positioning. More than anything it seems like the interest and attention gravitated toward cattle contracts Wednesday instead of the pork contracts. April lean hogs are down $0.45 at $63.77, May lean hogs are down $0.85 at $72.95 and June lean hogs are down $0.12 at $80.85. Pork cutouts total 311.90 loads with 270.08 loads of pork cuts and 41.82 loads of trim. Pork cutout values: up $0.31, $63.96. Wednesday's slaughter is estimated at 487,000 head, 9,000 head less than a week ado and 27,000 head more than a year ago. The CME lean hog index for 2/10/2020: down $0.53, $57.93.
THURSDAY'S CASH HOG CALL: Lower. Seeing that cash hog prices are starting to lose some excitement this week and packers are appearing to cut back on slaughter, making a strong case for weaker cash prices.
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