Tuesday Closing Livestock Market Summary - On to Higher Ground

GENERAL COMMENTS:

Tuesday closed as another strong day in the livestock sector with all three futures markets higher. The board has been rallying support and regaining position; now the question leading into midweek is will the support hold and will the cash market develop as well. Prices on the National Direct Afternoon Hog Report were up substantially, gaining $1.56 to put the weighted average at $59.06. May corn is up 3 3/4 cents per bushel and May soybean meal is down $1.50. The Dow Jones Industrial Average is up 2,112.98 points and NASDAQ is up 557.19 points.

LIVE CATTLE:

A stronger board and a relatively quiet cash market could lead to a potentially thrilling cash cattle market Wednesday. As support continues to build and regain trust in the board, prices have wasted no time this week jumping to higher ground. The complex closed limit higher in both nearby and deferred contracts and has yet to show signs of weakness this week. April live cattle closed $4.50 higher at $106.15, June live cattle closed $4.50 higher at $97.02 and August live cattle closed $4.50 higher at $98.25. Cash cattle trade has yet to really develop, although there was a little business in the North for $188 -- $3.00 higher than last week's weighted average.

Boxed beef prices closed mixed: choice down $1.01 ($256.31) and select up $0.34 ($245.48) with movement of 135 loads (56.51 loads of choice, 27.47 loads of select, 17.44 loads of trim and 33.19 loads of ground beef). Tuesday's slaughter is estimated at 123,000 head -- 2,000 head more than a week ago and 4,000 head more than a year ago.

WEDNESDAY'S CASH CATTLE CALL: Higher. Seeing a big line up again on the Fed Cattle Exchange leads one to believe feeders are in it for the money this week and plan to rally together and get higher prices.

FEEDER CATTLE:

Feeder cattle futures closed mostly limit higher except for the soon-expiring March contract, which still closed $5.00 higher. March feeders closed $5.00 higher at $130.22, April feeders closed $6.75 higher at $130.07 and May feeders closed $6.75 higher at $129.50. The market has been able to hold support levels and build steadily as time progresses, but now the real question lies on the cash market. Sale barns are starting to see a little more interest develop and the runs of cattle sold are strengthening. At Kingsville Livestock Auction in Kingsville, Missouri, feeders sold with sharply higher undertones compared to last week. There were a few comparable sales that traded feeders for $7.00 to $15.00 higher with spots of $20.00 higher. Slaughter cow and bull interest continues to be a hot market as those prices were steadily $3.00 to $6.00 higher. The CME feeder cattle index 3/23/2020: down $5.13, $118.23.

LEAN HOGS:

The lean hog market didn't close limit higher but the market's slow, steady gains add up, all while establishing trust back into the marketplace. April lean hogs closed $1.85 higher at $66.42, June lean hogs closed $2.05 higher at $73.00 and July lean hogs closed $1.67 higher at $74.70. Pork cutouts totaled 417.41 loads with 370.58 loads of pork cuts and 46.83 loads of trim. Pork cutout values: down $1.46, $82.05. Tuesday's slaughter is estimated at 498,000 head -- steady with a week ago and 18,000 head more than a year ago.

WEDNESDAY'S CASH HOG CALL: Steady. Cash hog prices have been rather impressive and as long as packers keep processing prices should stay at least steady.

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