GENERAL COMMENTS:
Live cattle and lean hog contracts were both able to keep some of the marketplace above limit levels whereas the feeder cattle contracts closed mostly limit lower. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.59 with a weighted average of $53.50. May corn is down 11 cents per bushel and May soybean meal is down $3.20. The Dow Jones Industrial Average is down 2,997.10 points and NASDAQ is down 970.29 points.
LIVE CATTLE:
Live cattle prices were able to keep from closing at limit levels except for in the June contract. April live cattle closed $3.72 lower at $91.85, June live cattle closed $4.50 lower at $85.25 and August live cattle closed $4.10 lower at $85.07. The market's uncertainty is heavily affecting cash cattle trade as business this week starts as early as Monday. Some live cattle traded for $105 to $110; $1.00 higher to $4.00 lower than last week's weighted average in the South. Colorado reported some trade at $105, which is easily $5.00 lower than last week's weighted average. Northern trade developed at $170, which is almost $5.00 lower than last week's weighted average. New showlists appear to be larger in Texas, but lower in Kansas and Nebraska/Colorado.
One of the most frustrating pieces of the current chaos is for producers to see the board falling, cash prices falling and then to look and see boxed beef prices hitting $14.00 and $16.00 advancements. Boxed beef cutouts closed significantly higher: choice up $16.22 ($224.36) and select up $14.73 ($216.71) with a movement 298 loads (194.75 loads of choice, 32.94 loads of select, 23.42 loads of trim and 46.60 loads of ground beef). Monday's slaughter is estimated at 116,000 head, 6,000 head less than a week ago and 2,000 head less than a year ago.
TUESDAY'S CASH CATTLE CALL: Lower. Unfortunately, early trade that's already developed lower than last week's weighted averages will make it extremely hard for the feeders that are left to sell to push prices higher. If the remainer of the trade happens to hold out for the later part of the week, they may be able to push packers higher as they need cattle.
FEEDER CATTLE:
Feeder cattle contracts closed limit lower yet again. Around the noon hour contracts shot higher for a mere 10 to 15 minutes but then dropped lower and closed with losses steadily at $4.50 lower. March feeders closed $4.50 lower at $108.50, April feeders closed $4.50 lower at $108.10 and May feeders close $4.50 lower at $109.97. At Joplin Regional Stockyards in Carthage, Missouri, feeder cattle in comparison to last week sold sharply lower. Steer and heifers sold $10.00 to $15.00 lower, and some steer calves sold $20.00 lower. Demand was sparse and it was obvious that buyers were leery of buying when the board closed limit lower yet again. The CME feeder cattle index 3/13/2020: down $3.24, $124.67.
LEAN HOGS:
Lean hog contracts escaped closing with complete limit losses, which in the current situation that the markets in, is a win in and of itself. April lean hogs closed $2.40 lower at $53.97, June lean hogs closed $4.50 lower at $66.80 and July lean hogs closed $4.47 lower at $68.02. Pork cutouts totaled 433.38 loads with 414.32 loads of pork cuts and 19.05 loads of trim. Pork cutout values: up $3.54, $73.38. Monday's slaughter is estimated at 497,000 head, 6,000 head more than a week ago and 32,000 head more than a year ago. The CME lean hog index 3/12/2020: up $0.54, $58.62.
TUESDAY'S CASH HOG CALL: Steady to slightly higher. Even though the futures market may be pressured lower, in order to keep the rigorous kill schedule, packers will need more hogs and they haven't been bashful at buying thus far.
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