GENERAL COMMENTS:
Friday afternoon didn't leave Monday's cattle complex much of a shot at trading higher and the markets knew their fate. Thankfully the lean hog complex was able to rally and push both the board and cash markets stronger. Hog prices are higher on the National Direct Afternoon Hog Report, up $1.18 with a weighted average of $41.38 on 10,148 head. December corn is up 4 1/2 cents per bushel and December soybean meal is down $0.50. The Dow Jones Industrial Average is up 378.13 points and NASDAQ is up 67.92 points.
LIVE CATTLE:
The live cattle complex waltzed into Monday's trade knowing that the day was going to be less than ideal and simply hoped for the damage to be minimal. October live cattle closed $0.62 lower at $107.92, December live cattle closed $0.95 lower at $110.82 and February live cattle closed $1.15 lower at $113.47. Early 2021 contracts were hit hardest, trading $1.10 to $1.15 lower. Monday's cash cattle trade was extremely quiet with bids and asking prices not fully established, but toward later afternoon a handful of cattle traded in Texas for $105. Monday's slaughter is estimated at 117,000 head -- 5,000 head more than a week ago and steady with a year ago.
Boxed beef prices are higher: choice up $1.53 ($227.47) and select up $2.26 ($211.25) with a movement of 112 loads (56.03 loads of choice, 11.92 loads of select, 23.67 loads of trim and 20.18 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. Asking prices have yet to be determined but with packers having the inventory they do, the ball is in their court. Northern feedlots will fight for at least steady prices but if the Southern Plains weakens early in the week the likelihood of steady will be tougher.
FEEDER CATTLE:
Feeder cattle prices had no hope of trading higher as the market's downward pressure brewed over the weekend and was solidified when traders bowed at Monday's morning bell. Low and behold, corn prices even decided to trade slightly higher, pushing the cattle complex even lower. September feeders closed $2.00 lower at $142.85, October feeders closed $2.45 lower at $142.82 and November feeders closed $1.82 lower at $143.67. At Joplin Regional Stockyards steer and heifer calves sold $2.00 to $5.00 lower compared to last week, while yearlings sold steady to $2.00 lower. The sale's weaker prices came from a 2-fold reaction -- still flustered emotion from the latest Cattle on Feed report, along with downward pressure on the market from Monday's weaker board. The CME feeder cattle index 8/21/2020: unavailable at this time.
LEAN HOGS:
Thankfully the lean hog complex rallied to give the livestock sector some positivity heading into Tuesday. With a strong cash hog trade (up $1.18 on 10,148 head) and a strong cutout close, the market successfully closed higher across the entire lean hog platform (board, cash and retail). After last week's rally above the $55.00 resistance level, the market's support dwindled and sent prices back below those levels in the spot contract. Traders will be leery of the cattle contracts for a while as toppy charts solidify, which could give the lean hog complex a shot at tackling those resistance levels again this week.
Pork cutouts totaled 255.45 loads with 228.64 loads of pork cuts and 26.82 loads of trim. Pork cutout values: up $1.06, $74.57. Monday's slaughter is estimated at 480,000 head -- steady with a week ago and 4,000 head more than a year ago. The CME lean hog index 8/20/2020: up $0.10, $55.51.
TUESDAY'S CASH HOG CALL: Steady to slightly lower. Monday's cash hog market was robust and aggressive. The market has commendable support, but could close steady after such a lofty Monday.
 |
| #completeherdhealth |
No comments:
Post a Comment