GENERAL COMMENTS:
In the world that we are currently living in, making it to Friday seems like a triumph in and of itself. Thankfully, this week posted some bullish wins for the marketplace; the board trade higher throughout most of the week, the lean hog complex traded stronger and cash cattle prices strengthened come Friday. But until packing plants are running at near full capacity, the industry is going to continue to suffer. Thankfully there has been some announcements made that some plants are going to start processing again next week, but given the current backlog that the market has built up -- we need plants to open now.
Hog prices were slightly higher on the National Direct Afternoon Hog Report, up $0.01 with a weighted average of $37.48 on 3,170 head sold. July corn is down 1 1/2 cents per bushel and July soybean meal is steady. The Dow Jones Industrial Average is down 622.03 points and NASDAQ is down 284.60 points.
From Friday to Friday livestock futures scored the following changes: June live cattle up $4.63, August live cattle up $3.65; May feeder cattle up $0.38, August feeder cattle up $1.25; June lean hogs up $11.18, July lean hogs up $9.45.
LIVE CATTLE:
June live cattle contracts closed $1.30 higher at $87.25, August live cattle contracts closed $0.45 higher at $92.55 and October live cattle closed $0.47 higher at $96.80. A light live trade developed in the South with a range of $95 to $105 though mostly $105 , compared to last week's weighted averages, Nebraska was $9 higher, Texas $8 higher and Kansas $1 higher. Northern dressed trade this week was at mostly $150, roughly $4 lower than last week's weighted average basis Nebraska.
Friday's slaughter is estimated at 77,000 head, 6,000 head less than a week ago and 43,000 head less than a year ago. Saturday's slaughter is projected to be around 47,000 head.
Boxed beef prices close higher: choice up $9.89 ($377.45) and select up $6.97 ($357.13) with a movement of 83 loads (45.03 loads of choice, 6.28 loads of select, 20.59 loads of trim and 11.07 loads of ground beef).
MONDAY'S CASH CATTLE CALL: Steady. Like we've chatted about before, the positive wins seen in the market this week can only carry so much clout as the big problem remains -- packing plants aren't processing cattle.
FEEDER CATTLE:
Feeder cattle contracts had a productive week, closing the day out strong and rallying most contracts to near $1.00 gains. For the most part, the week traded mostly sideways, not making vast movements either way but securing some stability by trading steadily. May feeders closed $0.72 higher at $117.82, September feeders closed $0.90 higher at $129.05 and October feeders closed $0.87 higher at $129.90.
At Herreird Livestock Market in Herreird, South Dakota, compared to last week, the best test on steers weighing 700 to 750 pounds and 800 to 850 pounds sold steady to 1.00 higher, 900 to 950 pound steers sold 2.00 to 4.00 higher. There was a good demand for Friday's offering featuring many loads and several packages. Cattle fitting grass programs were met with very good demand. The day held an active market with mostly order buyers in the seats. Live and feeder cattle futures ended up with positive numbers for Friday, but the prior weeks of uncertainty are making buyers very cautious and sometimes reluctant to procure cattle. The CME feeder cattle contract 4/30/2020: up $0.65, $119.39.
LEAN HOGS:
The lean hog complex kicked it into high gear come Friday and closed limit higher in nearby contracts. June lean hogs closed $3.75 at $62.70, July lean hogs closed $3.62 higher at $64.12 and August lean hogs closed $1.87 higher at $64.67. Pork cutouts total 298.20 loads with 269.96 loads of pork cuts and 28.24 loads of trim. Pork cutout values: up $5.89, $106.61. Friday's slaughter is estimated at 280,000 head, 81,000 head less than a week ago and 99,000 head less than a year ago. Saturday's slaughter is projected to be around 135,000 head. The CME lean hog index 4/29/2020: up $2.44, $54.70.
MONDAY'S CASH HOG CALL: Slightly stronger. Given the positive uptick from every side of the market, the board closed higher, the cash market was steady and there's buzz that some plants are going to start to reopen. The market should continue to feed on that positivity so long as nothing unforeseen happens over the weekend.
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