GENERAL COMMENTS:
Monday came and went, and little commotion took place in the livestock market other than the strength that developed in the feeder cattle contracts. Feeder cattle contracts have been inching higher in the last week, and throughout the countryside feeders have sold exceptionally well.
Hog prices closed lower on the National Direct Afternoon Hog Report, down $2.95 with a weighted average of $33.97 and a five-day rolling average of $36.93. July corn is down 2 1/2 cents per bushel and July soybean meal is down $0.10. The Dow Jones Industrial Average is up 91.91 points and NASDAQ is up 62.18 points.
*Monday's slaughter figures are incomparable as last Monday was a holiday.
LIVE CATTLE:
Live cattle contracts stuck with momentum established earlier in the day -- tentative in nearby contracts, but modestly stronger in deferred contracts. June live cattle closed $1.42 lower at $98.30, August live cattle closed $0.62 at $98.97 and October live cattle closed $0.05 lower at $101.37. Cash cattle trade started to develop around the noon hour with several areas reporting light trade. Southern live cattle sold for $118, and Northern dressed cattle sold for $187.
The National Weekly Direct Slaughter Report shared that packers bought an enormous 119,726 head; 112,475 head are committed for delivery in the next two weeks while the remaining 7,251 head are for delivery are in the next 15 to 30 days.
Boxed beef prices closed significantly lower: choice down $22.19 ($341.15) and select down $23.24 ($316.83) with a movement of 166 loads (111.99 loads of choice, 26.10 loads of select, 9.67 loads of trim and 18.09 loads of ground beef). Choice cutouts fell a record lower for the market.
TUESDAY'S CASH CATTLE CALL: Slightly lower. Seeing that packers have been extremely aggressive in their acquisition of cash cattle the last couple of weeks leads one to think that soon they are going to back off the cash cattle market.
FEEDER CATTLE:
Feeder cattle contracts were able to rally stronger after the noon hour and closed higher throughout the complex. Deferred contracts closed $2.00 higher and nearby contracts closed higher but with the same gusto. August feeder cattle closed $0.77 higher at $136.12, September feeder cattle closed $1.45 higher at $137.20 and October feeder cattle closed $1.75 higher at $137.77. Last Friday, at Torrington Livestock Auction in Torrington, Wyoming, compared to the previous week, feeder steers and heifers over 750 pounds traded $3.00 to $5.00 higher. There was a phenomenal offering of cattle offered with long strings and reputation herds. Slaughter cows traded $2.00 to $4.00 higher and slaughter bulls traded $3.00 to $5.00 higher. The CME feeder cattle index 5/29/2020: up $0.60, $128.96.
LEAN HOGS:
Lean hog contracts closed lower throughout the complex. June lean hogs closed $2.25 lower at $54.60, July lean hogs closed $1.87 lower at $55.15 and August lean hogs closed $1.62 lower at $55.10. Pork cutouts total 331.76 loads with 307.89 loads of pork cuts and 23.87 loads of trim. Hog slaughter may be a touch lighter this week as the plant in Storm Lake, Iowa, was shut down last week and will take some time getting back up to full speed. Pork cutout values: down $7.16, $81.04. The CME lean hog index 5/28/2020: down $0.70, $61.25.
TUESDAY'S CASH HOG CALL: Lower. Supply and demand fundamentals are ringing true in the lean hog market. As the industry struggles to get the built-up supply processed, prices will most likely continue to be weaker as packers have an overabundance of hogs waiting to be processed.
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