GENERAL COMMENTS:
Thursday could be another tough day as pressure looms over livestock contracts and support for the board is absent, putting cash prices in a tough spot. Hog prices are significantly lower on the National Direct Afternoon Hog Report, down $4.63 with a weighted average of $48.55. May corn is down 6 cents per bushel and May soybean meal is down $6.60. The Dow Jones Industrial Average is down 973.65 points and NASDAQ is down 339.52 points.
LIVE CATTLE:
Wednesday was a tough, tough day for livestock contracts. Limit lows scare investors as they see their equity losing value, they scare producers as they wonder what prices are projected to be this summer and fall, and they makes anyone who has to sell stock this week queasy. Live cattle contracts closed Wednesday at the expanded limits mark of $4.50 lower. April live cattle closed $4.50 lower at $97.32, June live cattle closed $4.50 lower at $87.57 and August live cattle closed $4.50 lower at $89.10.
Some light live cattle trade developed in the South mostly at $112, which is roughly $7.00 lower than last week's weighted average. Some dressed trade took place in the North at $180, which is $9.00 lower than last week's average. Wednesday's slaughter is estimated at 116,000 head -- 6,000 head less than a week and year ago.
Boxed beef prices were lower: choice down $7.98 ($235.17) and select down $3.83 ($225.13) with a movement of 135 loads (68.92 loads of choice, 14.84 loads of select, 26.78 loads of trim and 24.73 loads of ground beef). Wednesday's fall in the choice cutout rings the bell for another biggest loss in one day, following Tuesday's drop in prices.
THURSDAY'S CASH CATTLE CALL: Lower. Seeing that the trend for the week is sharply lower in both cash and futures makes it tough for producers to get prices any higher.
FEEDER CATTLE:
Feeder cattle futures contracts closed Wednesday limit lower. April feeders closed $4.50 lower at $117.42, May feeders closed $4.50 lower at $118.40 and August feeders closed $4.50 lower at $124.40. At the Springfield Livestock Marketing Center in Springfield, Missouri, steers under 650 pounds and heifers under 550 pounds sold steady to $5.00 higher compared to last week; heifers 550 to 650 pounds sold steady; steers over 700 pounds sold $7.00 to $15.00 lower; and heifers over 650 pounds sold $5.00 to $10.00 lower. Demand was moderate to good for grazing cattle, but demand was lighter for cattle headed into the feedlot. The CME feeder cattle index 3/31/2020: not available at this time.
LEAN HOGS:
Lean hog futures followed suit and closed the day limit lower. April lean hogs closed $3.00 lower at $49.20, June lean hogs closed $3.00 lower at $57.32 and July lean hogs closed $3.00 lower at $61.72. Pork cutouts totaled 300.71 loads with 269.83 loads of pork cuts and 30.88 loads of trim. Pork cutout values: down $2.99, $62.05. Wednesday's slaughter is estimated at 485,000 head -- 13,000 head less than a week ago and 3,000 head more than a year ago. The CME lean hog index 3/30/2020: down $0.41, $65.15.
THURSDAY'S CASH HOG CALL: Lower. Seeing that the board will be able to trade into expanded limits and that cash prices dropped over $4.00 Wednesday afternoon, Thursday will most likely be lower.
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