GENERAL COMMENTS
The futures market isn't active and ambitious like it was Tuesday and as the day progresses the contracts become more at ease with the day's direction. The cash hog market is trading slightly lower, but the cash cattle market has kept moving higher despite what other markets are doing. July corn is down 3 cents per bushel and July soybean meal is down $1.60. The Dow Jones Industrial Average is down 530.26 points and NASDAQ is down 204.07 points.
LIVE CATTLE
The live cattle market is disappointing as cash cattle prices jump higher again Wednesday morning. June live cattle are down $0.57 at $96.60, August live cattle are down $2.02 at $99.67 and October live cattle are down $2.14 at $102.02. Some light trade developed Wednesday morning in parts of Nebraska and Iowa at $170 dressed; $17.00 higher than last week's weighted average, and $185-plus in the North. Some asking prices remain firm at $120 in the South, and $185-plus in the North.
Wednesday's Fed Cattle Exchange listed a total of 4,601 head, with 1,272 actually sold, and 3,329 head listed as unsold. The state-by-state breakdown looks like this: Kansas 1,735 total head, with 126 head sold at $110.00, 1,609 head were unsold; Nebraska 882 total head, with all 822 head sold at $110.00; Texas 434 total head, with 264 head sold at $110.00, 170 head were unsold; Oklahoma 1,550 total head, with all 1,550 head unsold. The delivery date/weighted averages breakdown is as listed: 1-9 day delivery: 888 head total, 450 head sold, with a weighted average price of $110.00; 1-17 day delivery 3,713 head total, 822 head sold, with a weighted average price of $110.00.
Boxed beef prices are mixed: choice up $3.35 ($478.74) and select down $0.76 ($450.21) with a movement of 64 loads (29.46 loads of choice, 14.41 loads of select, 16.03 loads of trim and 4.57 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts are trading lower while the live cattle contracts act sheepish towards the day too. May feeders are down $1.77 at $125.52, August feeders are down $2.40 at $133.35 and September feeders are down $2.27 at $134.75. As the board has been all in or all out in regards to trading higher or lower in the last week, clear direction could solidify the indecisiveness as cash cattle trade exceptionally higher again this week.
LEAN HOGS
The lean hog market hasn't been able to escape Wednesday's lower trend as the entire complex heads lower. Nearby contracts are seeing the greatest losses though deferred are dancing near $2.00 losses as well. June lean hogs are down $3.05 at $58.27, July lean hogs are down $2.60 at $58.87 and August lean hogs are down $2.40 at $57.75. Working through built up supplies of both cattle and hogs is going to stress the market until the backlog is cleared. The market will most likely continue this trend until the industry is current again.
The projected lean hog index for 5/12/2020 is up $2.08 at $67.89, and the actual index for 5/11/2020 is up $0.06 at $65.81. Hog prices are lower on the National Direct Morning Hog Report, down $0.06 with a weighted average of $37.15, ranging from $36.00 to $37.15 on 5,835 head sold. Pork cutouts total 217.11 loads with 192.56 loads of pork cuts and 24.55 loads of trim. Pork cutout values: up $4.20, $117.02.
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