GENERAL COMMENTS:
Thursday was a day of moving and shaking for the livestock complex as prices moved higher. Heading into Friday, producers hope and pray that the movement can continue as folks are gut full of bearish news. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.10 with a weighted average of $31.36 on 4,432 head. December corn is up 3 1/2 cents per bushel and December soybean meal is up $1.40. The Dow Jones Industrial Average is down 135.39 points and NASDAQ is down 76.66 points.
LIVE CATTLE:
Live cattle contracts closed fully higher -- not as aggressive as the feeder cattle complex, but higher, nonetheless. August live cattle closed $1.97 higher at $103.27, October live cattle closed $2.05 at $106.60 and December live cattle closed $1.92 higher at $110.10. Boxed beef prices were expected to drop significantly this week, and seeing choice cuts stay above $200 is encouraging -- thus far at least. Cash cattle trade was mostly uneventful Thursday as packers picked up some cattle for steady money with the week's trade, but feeders are being pretty adamant about wanting their full asking prices. In the north, dressed cattle are priced at $160 and in the south feedlots are asking $97 or better. Thursday's slaughter is estimated at 117,000 head, 3,000 head less than a week ago and 5,000 head less than a year ago.
Actual slaughter data for the week ending July 4 shared that cattle weights were lower compared to the previous week. Actual live weights totaled 1365 pounds (down 4 pounds from the previous week) and dressed weights totaled 831 pounds (down 1 pound). Actual slaughter was slightly lower than what the estimated weekly reported anticipated slaughter to amount to, but actual data shared that cattle slaughter totaled 581,323 head, 11,677 head less than anticipated.
Boxed beef prices closed mixed: choice up $0.04 ($200.80) and select down $0.07 ($191.30) with a movement of 172 loads (102.90 loads of choice, 27.53 loads of select, 12.06 loads of trim and 29.91 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. So much of Friday will depend on what the board does, which, more than anything, affects the countryside's attitude. If prices come out fully higher again, packers may pay on a few pens the full asking prices, but if the board dips lower, feedlots may just choose to let cattle go and avoid feeding them in this heat.
FEEDER CATTLE:
Feeder cattle contracts liked how the day was panning out, but saw the opportunity to capture some $3.00 gains in nearby contracts and willfully did so into Thursday's close. Jumping to prices not seen since the first week of March, the feeder cattle complex soared through Thursday. August feeders closed $3.17 higher at $142.60, September feeders closed $3.20 higher at $142.75 and October feeders closed $2.70 higher at $143.20. At Mitchell Livestock Auction in Mitchell, South Dakota, compared to a week ago, steers weighing up to 950 pounds sold unevenly steady with a minute undertone noticed. Steers weighing 950 pounds and more sold $1.00 to $2.00 stronger and a higher undertone was obvious for heifers weighing up to 800 pounds. Heifers weighing 800 to 1000 pounds were $2.00 to $6.00 stronger, and heifers over 1000 pounds were steady. Demand was good and the board's positive trade helped boost confidence. The CME feeder cattle index 7/15/2020: down $0.23, $135.68.
LEAN HOGS:
Lean hog contracts rallied with the cattle contracts into Thursday's close and almost closed limit higher in the spot August contract. August lean hogs closed $3.50 higher at $53.65, October lean hogs closed $2.40 higher at $51.82 and December lean hogs closed $1.85 higher at $52.85. Not only was the market able to rally around a strong export report, but also the fact that China is still suffering from the ramifications of African swine fever, which decimated their nation's herd. Pork cutouts totaled 399.07 loads with 359.10 loads of pork cuts and 39.97 loads of trim. Pork cutout values: down $1.60, $67.35. Thursday's slaughter is estimated at 468,000 head, 1,000 head less than a week ago and 4,000 head less than a year ago. The CME lean hog index 7/14/2020: up $1.05, $47.10.
Actual slaughter data for the week ending July 4 shared that hog carcass weights were thankfully lower again. Actual live weights totaled 284 pounds (down 2 pounds) and actual dressed weights totaled 212 pounds (down 1 pound from the previous week). Actual slaughter was slightly lower than what the estimated report shared, estimated at 2,043,000 head, but actual data shared that the week processed 2,039,412 head, 3,588 head less than estimated.
FRIDAY'S CASH HOG CALL: Steady. Packers weren't as aggressive in their buying Thursday afternoon, but after their strong buying earlier this week they may have enough hogs to get through the weekend.
 |
| #completeherdhealth |
No comments:
Post a Comment