General Comments
As Monday rolls into the noon hour, the livestock complex trades all over the board. Lean hogs are fully higher, live cattle are mixed and feeder cattle are feeling pressured and trading lower. Until the week has some time to establish a trend for the cash market, cattle contracts will most likely be volatile. July corn is up 2 cents per bushel and July soybean meal is down $0.60. The Dow Jones Industrial Average is up 225.43 points and NASDAQ is up 28.25 points.
LIVE CATTLE
Live cattle contracts are teetering as most of the deferred contracts are trading lower but there is some support in the nearby markets that's elevating those contracts. June live cattle are up $0.12 at $94.02, August live cattle are up $0.17 at $96.35 and October live cattle are steady at $99.30. Bids and asking prices have yet to be established for the countryside, but new showlists appear to be somewhat lower in Kansas, and evidently lower in Texas, Nebraska and Colorado. As boxed beef prices continue to erode, this week's cash market is anticipated to be lower.
Cash cattle trade was incredible again last week. The USDA National Weekly Direct Slaughter Cattle -- Negotiated Purchases Report shared that last week packers bought 146,864 head. Of the cattle purchased last week 131,145 are for delivery in the next two weeks, and the remaining 15,719 will be for delivery in the next 15 to 30 days.
Boxed beef prices are lower: choice down $5.15 ($256.33) and select down $12.35 ($234.07) with a movement of 126 loads (85.90 loads of choice, 25.38 loads of select, zero loads of trim and 14.35 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts are taking the brunt of Monday's weakness as then entire complex trades lower. The feeder cattle contracts need assurance from the live cattle market that yes indeed there is demand and the bottom isn't falling out of the market as summer often embarks upon live cattle weakness. August feeders are down $0.82 at $133.35, September feeders are down $0.70 at $134.77 and October feeders are down $0.70 at $135.37.
LEAN HOGS
Last week's slaughter is estimated to be above year-ago levels (SJ_LS712) at 2,452,000 head -- up 1.7% from a year ago. As packers push vigorously to clip through the backlog of hogs, producers know that the backlog is going to burden the industry for a while, but that better days are coming. June lean hogs are up $0.80 at $48.25, July lean hogs are up $0.35 at $54.27 and August lean hogs are up $0.15 at $57.50.
The projected lean hog index for 6/5/2020 is down $1.42 at $51.93 and the actual index at 6/4/2020 is down $2.03 at $53.35. Hog prices are lower on the National Direct Morning Hog Report, down $0.48 with a weighted average of $31.66, ranging from $28.00 to $33.00 on 3,946 head with a five-day rolling average of $32.47. Pork cutouts total 260.52 loads with 239.26 loads of pork cuts and 21.26 loads of trim. Pork cutout values: up $1.29, $74.07.
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