Livestock contracts approach the noon hour with the same support and positivity with which they opened the day. Morning hog prices have bumped slightly higher with the encouragement of the board, but the biggest question will be to see if contracts hold their movement through closing, and then if the support carries into the latter part of the week will cash cattle prices fare better as well? April live cattle are up $3.00 at $105.85, April feeder cattle are up $3.88 at $129.425, April lean hogs are up $2.35 at $65.35, May corn is up 4 cents per bushel and May soybean meal is up $2.40. The Dow Jones Industrial Average is up 182.61 points and NASDAQ is up 106.85 points.
LIVE CATTLE
Live cattle contract head into the noon hour trading fully higher especially in nearby contracts. April live cattle are up $3.00 at $105.85, June live cattle are up $3.00 at $100.10 and August live cattle are up $2.32 at $100.40. The big questions that sit on the table are: 1) Is the bottom established and will this rally hold? And 2) If the future's market can keep its steam, how will cash prices react?
Packing inquiry is improving, but given that the market is heading higher, that can be seen both positively and negatively. If the market is going to establish a bottom and move fully higher, one would hope that cash cattle trade would wait to end of the week and encourage prices to elevate. But if the move is another glimpse of false hope, any interest in fat cattle is positive. On Monday there was a light trade that took place in parts of the North with dressed deals at $175, $6.00 lower than last week's weighted average, and live cattle traded at $110, which was fully $3.00 lower. Cattle in the south have yet to test to the market this week. Tuesday's asking prices are around $112 live and $180 dressed.
Boxed beef prices are mixed: choice up $0.08 ($207.44) and select down $1.86 ($200.46) with a movement of 76 loads (47.42 loads of choice, 11.36 loads of select, 8.53 loads of trim and 8.78 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts may have closed with limit losses on Monday but come Tuesday the feeder cattle market has jumped up to meet the day with vigor and support. March feeders are up $3.12 at $129.32, April feeders are up $3.82 at $129.37 and May feeders are up $3.25 at $129.90. Feeder cattle contracts are leading the other two livestock markets higher into the noon hour, and as time progresses I will be carefully watching the cash cattle market to see if it reciprocates the rally.
LEAN HOGS
The lean hog market and live cattle market are beating to the same drum Tuesday morning as both markets are eager to trade higher but not as bold and enthusiastic as the feeder cattle market is. April lean hogs are up $2.27 at $65.27, June lean hogs are up $1.90 at $79.25 and July lean hogs are up $1.77 at $80.07. The nearby markets are taking to Tuesday's slightly more than the deferred markets are, but as a whole the entire complex is trading $0.77 to $2.25 higher which indicates full support.
The two-day lean hog index for 3/9/2020 is up $0.18 at $57.27, and the actual index for 3/6/2020 is up $0.11 at $57.09. Hog prices are higher on the National Direct Morning Hog Report, up $0.13 with a weighted average of $51.37, ranging from $46.00 to $53.00 on 6,782 head sold and five-day rolling average of $50.86. Pork cutouts total 232.19 loads with 218.37 loads of pork cuts and 13.82 loads of trim. Pork cutout values: up $0.11, $68.06.
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