GENERAL COMMENTS
The livestock complex heads into Monday's afternoon mostly higher with just some nearby contracts trading lower in the feeder cattle market. Feeders have yet to establish their asking prices for the week, but most anticipate that they will be higher again this week. Watching protein prices through the next week to 10 days will be insightful as plans for Labor Day weekend are on everyone's minds and hopefully the food-service industry will be able to capitalize on the event even with COVID-19 restrictions. December corn is up 5 1/4 cents per bushel and December soybean meal is up $5.60. The Dow Jones Industrial Average is down 69.56 points and NASDAQ is up 84.08 points.
LIVE CATTLE
Live cattle contracts are keeping with their pace from last week as prices keep moving slowly higher. August live cattle are steady at $107.60, October live cattle are up $0.30 at $110.52 and December live cattle are up $0.55 at $113.37. Cash cattle prices are expected to be higher again this week and if the market is able to capture another week of strong cash cattle trade, the board should benefit from its endurance. Asking prices have yet to be established and with last week's later trade befitting feeders the most, feeders may wait to price cattle until later Monday or sometime Tuesday. New showlists appear to be mixed, higher in Nebraska/Colorado, but lower in Kansas and Texas.
Last week's negotiated trade came as a surprise as Friday's trade was much larger than expected. Last week 121,514 head sold with 95,175 head committed for delivery in the next two weeks and the remaining 26,339 head committed for delivery in the following 15 to 30 days.
Boxed beef prices are higher: choice up $2.17 ($216.41) and select up $2.01 ($201.30) with a movement of 57 loads (27.32 loads of choice, 7.64 loads of select, 5.40 loads of trim and 17.00 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts are having a battle of the minds Monday morning as the countryside continues to support higher prices but consensus from traders that higher is where the market should aim isn't as clear. With a big unknown question market surrounding this year's feed expenses as pastures continue to deteriorate and Iowa uncertain how of their corn is salvageable leaves the market leery of trading higher in nearby contracts. August feeders are down $0.37 at $143.55, September feeders are down $0.87 at $145.67 and October feeders are down $0.50 at $146.92. Watching this week's Superior Sale in Sheridan, Wyoming and Western Video Market's sale in Cheyenne, Wyoming will be insightful as both sales are hefty in size and will test how confident buyers are.
LEAN HOGS
The lean hog complex is liking the support that's carried over from last week and the strength in cutout prices. With the August contract expiring last week, the market can fully settle into the contracts at hand and see where the short-term rally is going to go. There's some long-term resistance at $55 that the market will face if prices keep with their recent trend. October lean hogs are up $0.75 at $53.77, December lean hogs are up $0.42 at $55.07 and February lean hogs are up $0.35 at $62.25.
The projected lean hog index for 8/14/2020 is up $0.63 at $54.47, and the actual index for 8/13/2020 is up $0.36 at $53.84. Hog prices are lower on the National Direct Morning Hog Report, down $0.02 with a weighted average of $37.61, ranging from $35.00 to $38.50 on 3,965 head and a five-day rolling average of $37.55. Pork cutout total 166.61 loads with 151.43 loads of pork cuts and 15.19 loads of trim. Pork cutout values: up $2.61, $77.54.
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