General Comments
Monday's trade has rallied more support than most thought the day would be able to but remembering that the week falls in front of a three-day holiday could dampen the market's ability to make substantial progress. Trade may be scaling higher but with mid-day boxed beef prices lower, the support in the live cattle sector could be undermined. December corn is steady and December soybean meal is up $3.30. The Dow Jones Industrial Average is down 228.34 points and NASDAQ is up 64.45 points.
LIVE CATTLE
Live cattle contracts are rallying despite concerns that boxed beef prices are trading lower and that cash cattle trade is anticipated to be lower. October live cattle are up $0.80 at $105.70, December live cattle are up $0.90 at $109.40 and February live cattle are up $0.82 at $112.67. With next Monday being a closed day for the markets in respect to Labor Day, all of the livestock contracts could be subject to some minor volatility as traders will likely be checked out the of the market before Friday. Showlists are slightly lower in Nebraska and Colorado, and fully lower in Kansas and Texas.
Last week's negotiated cash cattle sales totaled more than most anticipated as the week's trade was spotty. Total confirmed cash sales for last week totaled 100,762 head with 72,200 head committed for delivery in the first two weeks and the remaining 28,562 head committed for the following 15 to 30 days.
Boxed beef prices are lower: choice down $2.05 ($227.35) and select down $0.05 ($214.81) with a movement of 42 loads (20.80 loads of choice, 3.37 loads of select, 7.60 loads of trim and 10.04 loads of ground beef).
FEEDER CATTLE
Feeder cattle prices are trading modestly higher Monday morning as the market sees a slight opportunity to make forward progression and the slightly lower corn prices help bolster the idea. With feeder cattle prices being in a lull until the fall run commences, sales throughout the countryside for the next three weeks could be spotty and reactionary to the board and corn prices. September feeders are up $0.67 at $140.70, October feeders are up $0.80 at $140.97 and November feeders are up $1.05 at $141.65.
LEAN HOGS
With positive energy lingering throughout the livestock sector, the lean hog complex traders higher. Though the market is scaling higher, the complex has yet to rally the $55 resistance plane in the spot October contract, which will be a true telling of how substantial the market's support is. But with cash prices slightly higher and midday cutout values exuberantly higher (up $5.00) the market could make considerable headway through Monday's trade. October lean hogs are up $0.47 at $54.07, December lean hogs are up $0.37 at $55.57 and February lean hogs are steady at $61.97.
The projected lean hog index for 8/28/2020 is down $0.45 at $56.60, and the actual index for 8/27/2020 is down $0.07 at $57.05. Hog prices are higher on the National Direct Morning Hog Report, up $0.16 with a weighted average $43.07, ranging from $37.00 to $43.50 on 3,973 head and a five-day rolling average of $42.35. Pork cutouts total 167.20 loads with 146.89 loads of pork cuts and 20.32 loads of trim. Pork cutout values: up $5.10, $76.49.
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