GENERAL COMMENTS:
Livestock contracts were able to keep support through Monday's closing as all three sectors closed higher. The pressure now sifts to Tuesday as cattlemen pray that the market will be able to keep its momentum. Hog prices closed lower on the National Direct Afternoon Hog Report, down $1.70 with a weighted average of $42.88. May corn is down 3 cents per bushel and May soybean meal is down $6.20. The Dow Jones Industrial Average is up 1,627.46 points and NASDAQ is up 540.16 points.
LIVE CATTLE:
Live cattle contracts closed predominately higher, except for the spot and nearby June contract. The market seems somewhat split as cash cattle trade is expected to be lower this week with the uncertainty of packing plant speeds, but the board closed higher. April live cattle closed $4.50 lower at $83.82, June live cattle closed $0.55 lower at $80.30 and August live cattle closed $0.52 higher at $84.82. Cash cattle trade has yet to develop and most likely won't develop until the later part of the week.
Boxed beef prices are lower: choice down $0.39 ($230.05) and select down $0.81 ($215.03) with a movement of 162 loads (94.99 loads of choice, 34.45 loads of select, 14.21 loads of trim and 18.42 loads of ground beef). Monday's slaughter is estimated at 110,000 head, down 7,000 head from a week ago and down 11,000 head from a year ago.
TUESDAY'S CASH CATTLE CALL: Lower. Bids and asking prices may surface Tuesday, but it would surprise me if anything happened before Wednesday's Fed Cattle Exchange.
FEEDER CATTLE:
Feeder cattle contracts closed fully higher Monday afternoon, ranging anywhere from $1.20 higher to $2.92 higher in some deferred contracts. April feeders closed $2.17 higher at $110.42, May feeders closed $1.20 higher at $109.30 and August feeders closed $2.07 higher at $116.50. At Oklahoma National Stockyards in Oklahoma City compared to last week feeder steers sold $6.00 to $12.00 lower and feeder heifers were lightly tested but traded $8.00 to $12.00 lower. Steer calves were $3.00 to $6.00 lower, and heifer calves had a notable lower undertone. Although the board was able to close higher throughout the feeder cattle market, one day of higher prices doesn't mean much in the wake of the COVID-19 storm. Producers are looking for a sure bottom and for a long steady trend of something positive. The CME feeder cattle index 4/3/2020: down $1.69, $119.38.
LEAN HOGS:
Lean hog contracts closed higher throughout the complex, ranging from $0.90 to $3.92 higher. April lean hogs are up $0.90 at $41.12, June lean hogs are up $1.32 at $49.65 and July lean hogs are up $2.05 at $54.77. Pork cutouts totaled 398.86 loads with 369.90 loads of pork cuts and 28.97 loads of trim. Pork cutout values: up $0.32, $57.69. Monday's slaughter is estimated at 477,000 head, down 14,000 head from a week ago and up 1,000 head from a year ago. The CME lean hog index 4/2/2020: down $2.43, $60.65.
TUESDAY'S CASH HOG CALL: Lower. The volume of cash hogs traded Monday was relatively narrow and Monday's slaughter weakened significantly compared to the recent trend. As packers try to get a grasp on how many employees they have showing up and willing to work, the cash market may be spotty.
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