GENERAL COMMENTS:
There's both peace and pain in "time," and understanding how it will affect the mayhem of the coronavirus. Thankfully, in time, answers and solutions will develop. Health officials will crack the coronavirus code and give people of the world peace of mind knowing that they can't mitigate their risk of getting the virus, and both our markets and our day to day lives will go back to normal. On the other hand, unfortunately, with understanding that all things take time and that the market, and the world as a whole being is in uncharted waters, time leaves for vulnerability. The biggest question everyone wants answered is how long will this go on for? And for market enthusiasts and those worried about the economy, everyone what's to know how low things will go.
Cash hog prices are higher on the National Direct Afternoon Hog Report, up $0.05 with a weighted average of $54.04. May corn is down 8 3/4 cents per bushel and May soybean meal is up $1.20. The Dow Jones Industrial Average is down 2,352.60 points and NASDAQ is down 750.25 points.
LIVE CATTLE:
Live cattle contracts followed suit and closed the day limit lower and pulled three contracts below $100. April live cattle closed $3.00 lower at $100.07, June live cattle closed $3.00 lower at $94.25 and August live cattle closed $3.00 lower at $93.67. Unfortunately, the day's bad news didn't stop there as a light trade of cash cattle traded hands Thursday afternoon, and for even lower prices than what was already established earlier this week. Given that it was only lightly tested though, it's not enough to call the market even lower unless more cattle trade on Friday for such prices.
Thursday's slaughter is estimated at 117,000 head, 6,000 head less than a week ago but 15,000 head more than a year ago.
Boxed beef prices closed mixed: choice down $1.16 ($206.01) and select up $1.39 ($197.88) with a movement of 153 loads (90.27 loads of choice, 23.34 loads of select, 9.32 loads of trim and 30.16 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Given that the bulk of this week's business is largely already done, prices should stay within the market's already established trading range.
FEEDER CATTLE:
Feeder cattle contracts closed with losses locked in at limit lows for the day. March feeders are down $4.50 at $118.82, April feeders are down $4.50 at $119.02 and May feeders are down $4.50 at $120.75. At Mitchell Livestock Auction in Mitchell, South Dakota, 3,744 feeders sold, and in comparison to last week, feeder steers up to 800 pounds sold $14.00 to $17.00 lower, steers over 800 pounds sold $8.00 to $11.00 lower. Feeder heifers up to 750 pounds sold $7.00 to $15.00 lower and heifers over 750 pounds sold $6.00 to $10.00 lower. Demand was moderate; there was a good offering of cattle available, but the market's weakness came down to the fact that the board was down the limit and buyers are hesitant to jump into the marketplace without knowing where things are headed. The CME feeder cattle index 3/11/2020: down $2.01, $131.04.
LEAN HOGS:
The lean hog market locked in losses at limit lows early Thursday morning and the rest of the marketplace remained mostly quiet throughout the rest of the day. April lean hogs closed $3.00 lower at $60.87, June lean hogs closed $3.00 lower at $75.80 and July lean hogs closed $3.00 lower at $77.00. Given how much pressure the market is facing -- fueled by worry, uncertainty and nervousness -- it's quite telling that the cash hog market was able to trade higher both Thursday morning and into Thursday afternoon. Even with Thursday's pork export report coming in exponentially lower, cash hog prices still stepped higher. The drive in higher prices may comes down to the fact that with packers processing hogs at record speeds, that the readily available supply of market ready hogs is current and pushing packers pay a little more. Pork cutouts totaled 295.76 loads with 278.46 loads of pork cuts and 17.30 loads of trim. Pork cutout values: up $0.37, $69.19. Thursday's slaughter is estimated at 496,000 head, 1,000 head more than a week ago and 44,000 head more than a year ago. The CME lean hog index 3/10/2020: down $0.48, $57.75.
FRIDAY'S CASH HOG CALL: Steady. I don't see the market making sharp advancements with the constraints of the coronavirus, but it wouldn't be shocking to see the market hold steady if honest demand is what is supporting the current cash market.
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