Friday, January 17, 2020

Friday Closing Livestock Market Summary - Leaving on a Positive Note

GENERAL COMMENTS:
If there is a take away that the market can learn from this week, it is that it's wise to not bolster the market with sheer hopefulness and anticipation until the fine details are printed and clear. Thankfully the market seems to be coming around after Thursday's beatdown and is trading higher in both the lean hog and live cattle markets. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.43 with a weighted average of $50.79. March corn is up 13 3/4 cents per bushel and March soybean meal is down $0.00. The Dow Jones Industrial Average is up 50.46 points and NASDAQ is up 31.81 points.

From Friday to Friday livestock futures scored the following changes: February live cattle down $1.07, April live cattle down $0.70; January feeder cattle down $2.25, March feeder cattle down $2.45; February lean hogs down $0.42, April lean hogs down $0.02.

LIVE CATTLE:
No one ever wants to report steady trade when the overall moral of the market is higher in the first quarter, but that's where cash cattle prices landed this week -- and for good reason. With the signing of the phase one trade agreement there was going to be some level of emotion and ruthless reaction driven throughout the marketplace one way or another. Secondly, with Friday's storm blasting through most of cattle country, feeders wanted to get their pens of ready fats cleaned out before they were discounted next week for packing tags. Nevertheless, the cash cattle market closed fully steady this week with cattle in the South trading at $123 to $124 and cattle in the North traded at $197 to $200, which was $1.00 lower than last week's weighted average in the North. Thankfully as cattlemen and traders roll into next week, the board closed on a positive note. February live cattle are up $0.22 at $126.35, April live cattle are up $0.82 at $127.25 and June live cattle are up $0.35 at $119.20.

Closing boxed beef prices are higher: choice up $1.27 ($214.17) and select up $1.28 ($212.75) with a movement of 97 loads (61.49 loads of choice, 9.86 loads of select, 9.91 loads of trim and 15.90 loads of ground beef). Friday's slaughter is estimated at 116,000 head, down 4,000 head from a week ago and down 1,000 head from a year ago. Saturday's slaughter is projected at 27,000 head.

TUESDAY'S CASH CATTLE CALL: Steady. The marketplace will be closed Monday in respect to Martin Luther King Jr. holiday, but that's OK -- as we know it's rare, if hardly ever, that fat cattle sell early in the week.

FEEDER CATTLE:
Feeder cattle contracts were the most reluctant to break loose and let most of the trade take prices higher. January feeders are down $0.07 at $145.35, March feeders are up $0.17 at $145.00 and April feeders are up $0.07 at $147.87. In Ogallala Livestock Auction in Ogallala, Nebraska 6,785 feeders sold and compared to last week steers under 650 pounds sold $5.00 to $13.00 higher. Steers over 650 pounds sold stead to $2.00 higher. Heifers sold steady to $4.00 higher. The CME feeder cattle index 1/16/2020: down $0.61, $145.74.

LEAN HOGS:
Higher close on Friday? We will take it! As buyers have seen buying opportunities since Wednesday and Thursday's havoc on the futures market, the market came around to trade higher as the bell's whistle closed. February lean hogs are up $0.80 at $67.67, April lean hogs are up $0.32 at $74.10 and May lean hogs are down $0.02 at $80.70. Pork cutouts totaled 396.04 loads with 362.40 loads of pork cuts and 33.64 loads of trim. Pork cutout values: up $0.02, $75.47. Friday's slaughter is estimated at 464,000 head, 26,000 head less than a week ago but 10,000 head more than a year ago. Saturday's slaughter is projected to be around 120,000 head. The CME lean hog index 1/15/2020: up $0.62, $60.15.


TUESDAY'S CASH HOG CALL: Steady. There are a lot of variables up in the air as the market walks into a three-day weekend, but knowing that it will be a shortened week will probably have packers a little quicker to get to business than normal next week. 


#completecalfcare

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