GENERAL COMMENTS:
Monday served the livestock complex well -- all three markets closed higher, with the lean hog market closed substantially higher. As the question always is, will the market be able to pull the same support Tuesday? Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.93 with a weighted average of $36.84 on 9,255 head sold. July corn is down 3 cents per bushel and July soybean meal is down $4.10. The Dow Jones Industrial Average is up 26.07 points and NASDAQ is up 105.77 points.
LIVE CATTLE:
Live cattle contracts closed modestly higher and added to the slow progression that the industry is trying to build. June live cattle closed $0.82 higher at $88.07, August live cattle closed $0.50 higher at $93.05 and October live cattle closed $0.37 higher at $97.17. All in all the futures market is starting to show numerous signs that the support is there and trying to build, but the problem remains that until packing plants can process 600,000 head or more a week -- the industry is in serious trouble. Monday's slaughter is estimated at 75,000 head, down 2,000 head from the previous week and down 43,000 head from a year ago. Cash cattle trade was usual for a Monday; mostly nonexistent except for a small, small trade in Iowa. Showlists are larger this week and especially in Texas.
Boxed beef prices close substantially stronger: choice up $32.60 ($410.65) and select up $19.53 ($376.66) with a movement of 121 loads (69.08 loads of choice, 18.30 loads of select, 18.61 loads of trim and 15.02 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. I doubt that trade kicks off come Tuesday, but that rather waits until later in the week, post Fed Cattle Exchange.
FEEDER CATTLE:
Feeder cattle contracts pushed into Monday's closing higher and happily so. May feeders closed $1.25 higher at $119.07, August feeders closed $1.32 higher at $128.97, and September feeders closed $0.75 higher at $129.80. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers and heifers sold $1.00 to $5.00 higher, there were some steers that also sold $5.00 higher. Heifer calves were lightly tested but of those that sold they were steady to $3.00 higher. Demand was moderate to good and the quality was mostly plain with a few exceptional runs. The CME feeder cattle index for 5/1/2020: up $0.65, $119.39.
LEAN HOGS:
The lean hog complex continues to grow and press full steam ahead as the complex closed well over $1.00 higher. June lean hogs are up $2.80 at $65.50, July lean hogs are up $1.30 at $65.42 and August lean hogs are up $1.17 at $65.85. Unfortunately, the cash market wasn't able to make the day's progression along with the board, but it was interesting that over 9,000 head sold Monday morning. Pork cutouts totaled 286.96 loads with 271.99 loads of pork cuts and 14.97 loads of trim. Pork cutout values: up $1.20, $107.81. Monday's slaughter is estimated at 292,000 head, down 11,000 head from the previous week and down 176,000 head from a year ago. The CME lean hog index 4/30/2020: up $2.57, $57.27.
TUESDAY'S CASH HOG CALL: Steady. Until plants really start calling for hogs, the market's going to fight the uphill battle.
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