GENERAL COMMENTS:
It was a big win for cattle contracts heading
into the week on a higher note, which will hopefully trickle into next
week's trade, and not only bolster futures prices, but the cash market
too. Hog prices close the week higher on the National Direct Afternoon
Hog Report, up $0.92 with a weighted average of $49.56. March corn is
down 1 3/4 cents per bushel and March soybean meal is down $0.80. The
Dow Jones Industrial Average is down 25.23 points and NASDAQ is up 19.21
points.
From Friday to Friday, livestock futures scored
the following changes: February live cattle down $0.50, April live
cattle up $0.53; March feeder cattle up $3.33, April feeder cattle up
$3.88; February lean hogs down $1.20, April lean hogs down $1.95.
LIVE CATTLE:
One and then the other right? The futures side
of the market was able to pull higher later in the week and closed with
nearby contracts exceeding $1.00 gains and deferred contracts not far
behind that. February live cattle are up $1.37 at $120.82, April live
cattle are up $1.80 at $120.32 and June live cattle are up $1.37 at
$112.00. As for the other side of the market, cash prices were fully
lower this week and peculiar in nature as trade was largely wrapped up
by Thursday and for anywhere from $2.00 to $3.00 lower. If the futures
market is able to pull the board up and translate into next week's
trade, maybe fat cattle will see at least steady prices too.
Boxed beef prices closed higher: choice up $1.64
($208.09) and select up $1.92 ($205.71) with a movement of 126 loads
(57.41 loads of choice, 13.23 loads of select, 29.36 loads of trim and
26.37 loads of ground beef). Friday's slaughter is estimated at 111,000
head, 4,000 head less than last week and 3,000 head less than a year
ago. Saturday's kill is estimated to be around 27,000 head; some plants
will be open Monday and some will not. The drop in kill levels has a lot
to do with packers trying to push inventory as far and wide as it will
go, and boxed beef prices aren't a driving force for packers right now
either.
MONDAY'S CASH CATTLE CALL: Monday will be a
quiet day with the futures market closed for President's Day and most
folks still out taking advantage of the long-weekend opportunity. If the
support in the board can carry into next week -- which there's a good
possibility it will -- the cash market could see some firmness develop
in prices.
FEEDER CATTLE:
Closing just shy of triple-digit gains, the
feeder cattle market closes the week on a strong note. March feeders are
up $2.20 at $138.52, April feeders are up $2.42 at $141.37 and May
feeders are up $2.37 at $143.20. The live cattle market followed closely
behind the path the feeder cattle market made and thankfully so. Now
that Friday has come and gone, the pressure sits on next week and how it
will absorb the positive energy.
On Thursday, at Mitchell Livestock Auction in
Mitchell, South Dakota, 3,233 head of feeders sold, in comparison to
last week feeder steers sold $2.00 to $5.00 lower. Feeder heifers
weighing up to 650 pounds sold $1.00 to $4.00 lower, heifers weighing
650 to 700 pounds sold $3.00 higher and feeder heifers weighing 700
pounds and higher sold $2.00 to $4.00 lower. Demand for the cattle was
good and there was a good offering of cattle in load lot sizes. The CME
feeder cattle index for 2/13/2020: $140.61, up $0.09.
LEAN HOGS:
The lean hog markets closed the day mixed as a
lot of the market's interest and attention gravitated towards the cattle
contracts. April lean hogs are up $0.22 at $64.30, May lean hogs are up
$0.15 at $73.00 and June lean hogs are down $0.12 at $80.90. The market
still had positive movements through closing though as the cash market
has been vigorous this week; helping producers capture some profits.
Pork cutouts totaled 313.29 loads with 272.85 loads of pork cuts and
40.44 loads of trim. Pork cutout values: down $0.35, $62.75. Friday's
slaughter is estimated at 481,000 head, 11,000 head less than last week
but still 19,000 head more than a year ago. Saturday's kill is estimated
to be around 148,000 head. The CME lean hog index 2/12/2020: $56.70,
down $0.62.
MONDAY'S CASH HOG CALL: Monday will be quiet in
observation of the holiday, but next week's cash hog market should be
able to keep the positive undertone that this last week has stimulated.
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