GENERAL COMMENTS:
The livestock complex was a hard game Wednesday, as everything seems to be trading in its own world, for its own reason. Cash cattle prices were lower but the board traded higher for a chunk of the day. While the lean hog complex was steadily lower on the board (all day), the cash market jumped over $1.00 higher. In these chaotic times, unparalleled movements seem to be more and more normal. Hog prices are higher on the National Direct Afternoon Hog Report, up $1.41 with a weighted average of $34.24 on 8,138 head sold. May corn is up 8 1/4 cents per bushel and July soybean meal is down $1.60. The Dow Jones Industrial Average is up 456.94 points and NASDAQ is up 232.15 points.
LIVE CATTLE:
Live cattle contacts ran into the noon hour fully higher, but unfortunately weren't able to close with the same excitement. Nearby contracts closed fully lower and a handful of deferred contracts closed modestly higher. June live cattle closed $0.15 lower at $83.92, August live cattle closed $0.15 lower at $88.35 and October live cattle closed $0.30 lower at $93.47. The Fed Cattle Exchange spurred some movement throughout the countryside, though not enough to really set a trend for the week or enough to establish a price range. Kansas sold a few fats at $1.00, Nebraska sold some at $148.00 to $150.00, Texas sold some for $93.00 and Iowa sold some for $148.00 to $150.00. Wednesday's slaughter is estimated at 85,000 head, 8,000 head less than a week ago and 37,000 head less than a year ago.
Boxed beef prices are higher: choice up $15.90 ($275.75) and select up $12.20 ($261.02) with a movement of 93 loads (59.65 loads of choice, 10.62 loads of select, 3.65 loads of trim and 19.09 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady with prices thus far. With the board undecided if it wants to be higher or lower, and packing plants still limited to the number of cattle they can harvest, prices would have a hard time jumping higher, though feeders pray they do.
FEEDER CATTLE:
Feeder cattle contracts were able to hold their strength through closing, and closed higher throughout most of the complex. May feeders down $0.07 at $116.67, August feeders up $0.30 at $127.20 and September feeders up $0.20 at $128.62. On Tuesday, at Miles City Livestock Auction in Miles City, Montana, compared to two weeks ago, the demand for feeder cattle was mostly moderate, with good demand seen at times. Quality was mostly attractive with several load lots in the offering. Many sets of cattle were developed for grass and were in thin to light flesh. Several buyers were on hand purchasing replacement heifers. Overlapping demand between grass buyers and replacement buyers helped spur demand for heifers throughout the day.
The simple fact that buyers are interested in replacement heifers is a long-term bullish sign. The market is far from ideal (and that's putting it lightly), but this too shall pass and producers are seeing that too. The CME feeder cattle index 4/21/2020: up $0.03, $119.66.
LEAN HOGS:
Lena hog contracts wrapped up the day modestly lower while cash prices jumped over $1.00 higher. June lean hogs are down $0.20 at $47.90, July lean hogs are down $1.72 at $51.20 and August lean hogs are down $2.02 at $55.10. Pork cutouts totaled 297.29 loads with 236.86 loads of pork cuts and 60.44 loads of trim. Pork cutout values: up $3.03, $72.98. Wednesday's slaughter is estimated at 363,000 head, down 72,000 head from a week ago and 116,000 head less than a year ago. The CME lean hog index for 4/20/2020: up $0.22, $44.77.
THRUSDAY'S CASH HOG CALL: Steady. The market jumped substantially higher Wednesday and even if prices remained steady, it would be a positive indication.
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