Monday, September 30, 2019

Monday Closing Livestock Market Summary - Mixed Close in Livestock

GENERAL COMMENTS:
The week began on a strong note for some and weary for others. Largely the livestock complex opened traditionally with live cattle and feeder cattle unsure of whether the market would subside or grab onto new highs, and the corn contract acted as expected with confirmation of more shipments to be made to Mexico. Corn futures closed 16 1/4 cents higher. According to the National Direct Afternoon Hog Report, prices are up $0.64 with a weighted average of $49.02. The stock market closed stronger with the Dow Jones Industrial Average up 97 and the NASDAQ up 59.
LIVE CATTLE:
The live cattle market could be a gamble this week. With boxed beef prices eroding to follow seasonal trends, shows lists being mixed (higher in the South, lower in the North), slaughter expected to be lower -- and with packer's able to pull their October contracts this week -- it will be a tough act to get higher fat cattle prices this week. Live cattle closed the day mixed: $0.60 higher to $0.45 lower. Nearby contracts struggle to find interest, while deferred contracts sit with moderate gains. Live cattle equivalent index: $136.40, down $0.74.
Boxed beef cutouts closed the day lower: choice down $0.14 ($212.44) and select down $2.75 ($187.11) with moderate to fairly good offerings totaling 106 loads total (44.52 loads of choice cuts, 34.01 loads of select cuts, 11.22 loads of trim and 15.95 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. With asking prices yet to be established and no confirmed bids that have surfaced, it's unlikely that there will be any significant movement in the cash market until midweek or later.
FEEDER CATTLE:
Despite last week's strong feeder cattle market, feeder cattle contracts took Monday's opening hard. Unable to set a precedence in the market with traders seeming uninterested and knowing that the country side is bound to be flooded with calves trotting across scales as soon as next week, the feeder cattle market wasn't the place to find your serotonin Monday. Feeder futures closed lower, ranging from being moderate to sharply lower, down $0.32 to $1.92. On an estimated run of 6,900 head (up from 6,295 head last week) Oklahoma City sold feeder steers $2 to $4 higher and feeder heifers sold mostly steady.
LEAN HOGS:
Nearby and deferred contracts in the lean hog sector all closed higher, up $0.17 to $2.70. Even with Friday's daunting USDA Hogs and Pigs report, the lean hog market has surged on and not looked back. Pork Cutout: $73.73, up $0.47. Lean hog equivalent index: $78.47, up $0.47.
TUESDAY'S CASH HOG CALL: Steady to $1 higher. There's a good chance that with a strong closing board and supporting cutout values one could see a slight bump in the market, but then again, it's early in the week and no one likes to hand out easy money too soon before the market is truly established.

#completeherdhealth

No comments:

Post a Comment