GENERAL COMMENTS:
The livestock industry seemed to be checked out of Tuesday's market and tuned into the announcement from President Trump and the USDA of the unveiling of the Coronavirus Food Assistance Program (CFAP). CFAP is to provide financial assistance to producers of agricultural commodities who have endured a 5% or greater price decline due to COVID-19 and who have also faced additional marketing costs as a correlation to the virus' effects on demand, surplus production and disruptions to the usual flow of business. Given the hardship that farmers and ranchers have endured in the last five months, nearly all eyes and ears were on Tuesday's announcement.
Hog prices jumped higher on the National Direct Afternoon Hog Report, up $1.34 with a weighted average of $38.36 on 6,748 head. July corn is up 1/2 cent per bushel and July soybean meal is down $0.50. The Dow Jones Industrial Average is down 390.51 points and NASDAQ is down 49.73 points.
LIVE CATTLE:
Live cattle contracts closed mixed -- slightly higher in nearby contracts, lower in the winter months and steady in the deferred months. June live cattle closed $0.05 higher at $98.77, August live cattle closed $0.22 higher at $99.07 and October live cattle closed $0.07 higher at $101.12. Some cash cattle trade did develop Tuesday afternoon throughout the country. One major bought cattle for $180 dressed in Nebraska for delivery next week, while live deals of $119 were also made Nebraska and cattle sold for $115 in Iowa as well. Tuesday's slaughter is estimated at 99,000 head, up 10,000 head from a week ago and 22,000 head less than a year ago.
Boxed beef prices closed lower: choice down $5.48 ($409.47) and select down $6.00 ($388.87) with a movement of 120 loads (40.33 loads of choice, 16.76 loads of select, 37.30 loads of trim and 25.74 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady. Seeing that a handful of cattle have traded mostly around last week's threshold, the market will most likely continue to trade alongside last week's prices. Trade may really kick off after Wednesday's Fed Cattle Exchange.
FEEDER CATTLE:
The feeder cattle complex closed the day uneventful and mostly lower. May feeders closed $0.82 higher at $127.42, August feeders closed $0.62 lower at $131.92 and September feeders closed $0.42 lower at $133.32. At Blue Grass Stockyards in Lexington, Kentucky, compared to last week, feeder steers under 600 pounds sold unevenly steady to weak with moderate demand; while steers over 600 pounds sold $1.00 to $4.00 higher with good demand. Feeder heifers sold $1.00 to $3.00 higher with healthy demand. Rain and flash flooding limited the number of cattle sold this week as some producers that were expected to participate couldn't make the trip. The CME feeder cattle index for 5/18/2020: up $1.11, $126.84.
LEAN HOGS:
The lean hog complex closed much like the rest of the industry -- merely unchanged with the day's happenings and in a moderately lower tone. June lean hogs closed $1.00 lower at $56.65, July lean hogs closed $1.37 lower at $56.27 and August lean hogs closed $1.32 lower at $55.47. On a positive note, the afternoon's cash hog trade jumped over $1.00 higher and packers continue to vigorously clip through the backlog of readily available hog supplies. Pork cutouts totaled 488.53 loads with 442.39 loads of pork cuts and 46.14 loads of trim. Pork cutout values: down $9.76, $97.70. Tuesday's slaughter is estimated at 397,000 head, up 36,000 head from a week ago and 69,000 head less than a year ago. The CME lean hog index for 5/15/2020: down $1.10, $67.60.
WEDNESDAY'S CASH HOG CALL: Steady. Some of Tuesday afternoon's cash hog rally could have stemmed from the excitement about the Coronavirus Food Assistance Program and how it will compensate those who have been affected in the last couple of months from the virus.
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