GENERAL COMMENTS:
Despite last week's strength on the futures board and the higher cash hog market, this week's complex seems to have more pressure built up as the market is unable to close the day higher. Hog prices are higher on the National Direct Afternoon Hog Report, up $0.96 with a weighted average of $32.73, on 5,780 head sold. May corn is down 5 cents per bushel and July soybean meal is up $3.70. The Dow Jones Industrial Average is down 631.56 points and NASDAQ is down 297.50 points.
LIVE CATTLE:
Live cattle contracts closed the day bearish again, tipping lower as pressure and uncertainty seem to be the only sure thing. June live cattle closed $1.02 lower at $84.07, August live cattle closed $1.60 lower at $88.50 and October live cattle closed $1.57 lower at $93.77. There was a large run of cattle that sold to a Regional in Nebraska for $149 to $150 ($7.00 to $8.00 lower) and a handful that sold for $94 to $95 ($5.00 to $6.00 lower) in the same area. The rest of the marketplace has yet to trade and looks to see what will happen at the FCE come midmorning Wednesday. Tuesday's slaughter is estimated at 84,000 head, 15,000 head less than a week ago and 37,000 head less than a year ago.
Boxed beef prices close higher: choice up $11.47 ($259.85) and select up $10.83 ($248.82) with a movement of 78 loads (47.57 loads of choice, 10.40 loads of select, 8.72 loads of trim and 11.14 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Lower (don't shoot the messenger). Whenever cattle trades early in the week, it's hard to bump prices higher. Hopefully the Fed Cattle Exchange will come out and have a strong sale, but with this week's total slaughter not expected to even rally last week's weak 502,000 head, prices could be lower.
FEEDER CATTLE:
Feeder cattle contracts tested Tuesday's tolerance of how low contracts were willing to go but thankfully closed only $0.15 to $0.75 lower when it was all said and done. May feeders closed $0.52 lower at $116.75, August feeders closed $0.75 lower at $126.90 and September feeders closed $0.82 lower at $128.42. Adding the uncertainty of external markets to the already chaotic cattle market isn't helping sale barns. At Blue Grass Stockyards in Lexington, Kentucky, compared to last week, feeder steers sold $5.00 lower with there being moderate demand for weaned feeders and light demand for new calves freshly weaned. Feeder heifers sold $1.00 to $3.00 lower with moderate demand. Slaughter cows sold steady with last week but were $5.00 lower compared to Monday's sale, while slaughter bulls sold $3.00 higher. The CME feeder cattle index 4/20/2020: up $2.07, $117.88.
LEAN HOGS:
Tyson shared the announcement that they intend to re-open the pork packing plant in Columbus Junction, Iowa, -- which processes 10,100 head per day -- and cash hog prices jumped $0.96 -- halleluiah! The board, unfortunately, didn't jump with the same excitement, as most of the complex closed lower. June lean hogs closed $1.85 higher at $48.10, July lean hogs closed $0.85 lower at $52.92 and August lean hogs closed $1.47 lower at $57.17. Pork cutouts total 401.13 loads with 358.60 loads of pork cuts and 42.53 loads of trim. Pork cutout values: up $3.27, $69.95. Tuesday's slaughter is estimated at 354,000 head, 83,000 head less than a week ago and 124,000 head less than a year ago. The CME lean hog index 4/17/2020: down $0.40, $44.55.
WEDNESDAY'S CASH HOG CALL: Lower. The day may have been excited about the announcement from Tyson, but the fact of the matter remains that there are more hogs that need to go to be processed than there are buyers.
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