Friday Midday Livestock Market Summary - Coasting Through the Day

General Comments

Heading into Friday's noon hour the industry seems to be taking a deep breath out slowly after all of what Thursday processed - the board was higher; the hogs and pigs report came out and the feeder cattle market was avidly tested. Friday's markets aren't near as ambitious as all three livestock contracts are trading lower and cash markets are either lower (hogs) or extremely idle (cattle). July corn is up 1/4 cent per bushel and July soybean meal is down $2.70. The Dow Jones Industrial Average is down 643.28 points and NASDAQ is down 196.84 points.

LIVE CATTLE

Live cattle contracts are kicking the can lower down the road as cash cattle prices sit mostly quiet thus far through the day. August live cattle are down $0.37 at $95.70, October live cattle are down $0.37 at $99.27 and December live cattle are down $0.42 at $103.12. Packers have inquired on some cattle throughout the countryside, but bids are scarce indicating that the bulk of this week's trade is down. There has been a moderate amount of trade transpire this week with cattle in the North selling for $152 to $156, and cattle in the South selling from $93 to $97.

Boxed beef prices are lower: choice down $0.68 ($207.58) and select down $0.17 ($199.76) with a movement of 95 loads (37.29 loads of choice, 12.08 loads of select, 20.40 loads of trim and 24.79 loads of ground beef).

FEEDER CATTLE

After Thursday's highly anticipated run of feeder cattle sales, feeder cattle contracts coast into Friday feeling an immense amount of pressure relieved now that those sales are over. Feeder cattle prices were far higher than most assumed given the current challenges the industry is facing. Feeders saw an opportunity to buy exceptional calves and liked how corn prices were in their favor! Heading into the second half of Friday, feeder cattle contracts are lower and have traded mostly lower throughout the day. August feeders are down $0.55 at $132.70, September feeders are down $0.65 at $133.85 and October feeders are down $0.80 at $134.65.

Northern's Sale Recap: https://www.northernlivestockvideo.com/…

Superior's Sale Averages: http://www.superiorlivestock.com/…

LEAN HOGS

Lean hog contracts are feeling even more pressure after Thursday's hogs and pigs report solidified the fact that the industry will struggle with the built-up supply of readily available hogs for quiet some time. July lean hogs are down $1.55 at $45.37, August lean hogs are down $3.47 at $47.85 and October lean hogs are down $3.42 at $47.10. As Thursday's report came as another bitter reminder of how COVID-19 has affected the livestock markets; there is some comfort in knowing that the industry is against instead of dancing around the unknown.

The projected lean hog index for 6/25/2020 is up $0.36 at $45.23, and the actual index for 6/24/2020 is down $0.22 at $44.87. Hog prices are lower on the National Direct Morning Hog Report, down $0.17 with a weighted average of $28.49, ranging from $24.00 to $30.00 on 5,856 head and a five-day rolling average of $28.55. Pork cutouts total 274.73 loads with 243.76 loads of pork cuts and 30.97 loads of trim. Pork cutout values: up $0.93, $65.98.

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