GENERAL COMMENTS:
Another strong close for the livestock complex as all three sectors were able to close higher and are sitting in a fine position to end the week fully higher as well. Seeing that Wednesday has come and gone, and cash cattle interest is building, everyone starts to eye higher prices for fat cattle this week too. Cash hog prices are higher on the National Direct Afternoon Hog Report, up $0.19 with a weighted average of $49.83. March corn is down 2 1/2 cents per bushel and March soybean meal is up $0.80. The Dow Jones Industrial Average is up 115.84 points and NASDAQ is up 84.44 points.
LIVE CATTLE:
Cattle bought in Texas, on Wednesday, for $1.00 higher than last week's weighted average is a sign that packers are short bought. A light trade was reported Wednesday afternoon at $120 in Texas, while the rest of cattle country sits idly. Cattle have been bid at $119 in Nebraska and $120 in Kansas, but at this point Texas is the only state to trade. Seeing that the futures market is putting itself back together and establishing a bottom in market, cash prices are ready for their time to shine. February live cattle closed $0.12 lower at $121.30, April live cattle closed $0.20 higher at $120.80 and June live cattle closed $0.10 higher at $112.30.
Boxed beef prices close lower: choice down $0.56 ($205.57) and select down $1.97 ($201.76) with a significant movement of 181 loads (114.72 loads of choice, 34.85 loads of select, 5.27 loads of trim and 26.30 loads of ground beef). Wednesday's slaughter is estimated at 122,000 head, 2,000 head more than last week and 13,000 head more than a year ago.
THURSDAY'S CASH CATTLE CALL: $1.00 to $2.00 higher. Seeing that there was a very limited amount of cattle that traded last week, packers are going to have to step up and buy cattle this week.
FEEDER CATTLE:
The feeder cattle market continues to keep its rigorous pace sending contracts higher and closing on a positive note heading into Thursday. March feeders are up $1.47 at $140.77, April feeders are up $1.25 at $143.02 and May feeders are up $0.60 at $144.37. On Tuesday, at McAlester Union Livestock Auction in McAlester, Oklahoma, 2,490 feeder sold, and in comparison to last week's sale, steer calves sold $5.00 to $11.00 higher. Heifer calves sold $4.00 to $10.00 higher. Quality was considered average to good and demand was phenomenal. More farmer feeders are sitting in the sale barns looking to pick up buys, which is helping drive prices up on calves. Seeing that there are a lot more feeders already in the feedlots this year, demand for feeders this spring could be exponential as cattlemen will want green cattle for grass. The CME feeder cattle index 2/18/2020: down $0.10, $141.20.
LEAN HOGS:
Pork prices continue to climb as interest rebuilds itself in the lean hog market and China's need for pork continues to hold true. April lean hogs re up $2.07 at $67.57, May lean hogs are up $1.75 at $75.30 and June lean hogs are up $1.80 at $83.17. Pork cutouts totaled 319.62 loads with 259.56 loads of pork cuts and 60.06 loads of trim. Pork cutout values: down $1.00, $64.01. Wednesday's slaughter is estimated at 492,000 head, steady with last week and 27,000 head more than a year ago. The CME lean hog index 2/17/2020: down $0.31, $55.66.
THURSDAY'S CASH HOG CALL: Steady. Thursday's cash trade could be very similar to Wednesday's; trading both higher and lower to amount to near steady prices. As cash cattle trade develops, attention will probably shift over to the cattle side of things at the week ends.
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