General Comments
The marketplace is thriving midmorning Tuesday as all three livestock contracts continue to trade higher and even though it's early in the week, a light run of cash cattle have traded for $190 in parts of Nebraska. Significant trade will most likely hold off until later in the week but seeing prices come out strong this early is another good sign for the market this week. July corn is up 1 1/2 cents per bushel and July soybean meal is up $0.10. The Dow Jones Industrial Average is up 567.42 points and NASDAQ is up 75.36 points.
LIVE CATTLE
Live cattle contracts may not be rallying the solid $3.00 or higher like the feeder cattle complex is, but the substantial $1.70 to $2.00 gains seen throughout the complex is warmly welcomed. June live cattle are up $1.72 at $99.40, August live cattle are up $1.82 at $99.15 and October live cattle are up $1.82 at $101.22. Seeing that both the June and August contracts are within a $1.00 of the $100.00 threshold, leaves the market with a decision to make. Is there enough support and enough traders around willing to buy into the marketplace to push past the $100 benchmark? Or will the market trade higher, but without coming in full contact with the resistance? Solid support builds within the market as cash cattle have already traded steady this week. Some light trade is developing in parts of Nebraska at $190, which is fully steady with the top end of last week's business. Showlists this week appear to be higher in all feeding regions and especially in Texas.
Boxed beef prices are lower: choice down $10.73 ($386.01) and select down $9.62 ($364.56) with a movement of 149 loads (97.46 loads of choice, 14.69 loads of select, 3.29 loads of trim and 33.91 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts head into Tuesday ready to capture all of what the day has to offer and push contracts into mostly triple-digit gains. August feeders are up $4.30 at $133.07, September feeders are up $3.87 at $134.02 and October feeders are up $3.65 at $134.90. Last week, the market danced mostly lower as there was pressure on both live cattle and feeder cattle contracts. Seeing that fat cattle are testing the market this week already fully steady with last week's prices, if the board can rally on the live cattle side of things, the feeder cattle contracts are appearing to be growing in strength. This comes as a pleasant surprise as cattle producers look forward to seeing what the first large runs of videos sale do in the next couple of weeks for feeder cattle.
LEAN HOGS
The lean hog complex wasn't completely sure about the day's ambition to rally higher but has since warmed up to the idea and is trading right along with cattle contracts. June lean hogs are up $2.17 at $60.95, July lean hogs are up $3.42 at $59.32 and August lean hogs are up $2.60 at $56.87. Morning pork cutout values skyrocketed pushing upwards of $10 higher, so heading into the afternoon it will be interesting to see where those prices close and see how demand changes over the next little while.
The projected lean hog index for 5/22/2020 is down $1.15 at $62.30, and the actual index for 5/21/2020 is down $1.15 at $63.45. Hog prices are lower on the National Direct Morning Hog Report, down $2.61 with a weighted average of $36.20, ranging $32.00 to $39.00 on 4,805 head sold. Pork cutouts total 193.86 loads with 178.61 loads of pork cuts and 15.25 loads of trim. Pork cutout values: up $10.06, $106.81.
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