GENERAL COMMENTS:
Friday didn't add any peace to the marketplace,
but instead drew price lower again. Hog prices closed higher on the
National Direct Afternoon Hog Report, up $0.03 with a weighted average
of $54.19. May corn is steady and May soybean meal is down $3.30. The
Dow Jones Industrial Average is up 1,985.00 points and NASDAQ is up
673.08 points.
From Friday to Friday livestock futures scored
the following changes: April live cattle down $10.18, June live cattle
down $10.28; March feeder cattle down $17.70, April feeder cattle down
$17.45; April lean hogs off $9.55, May lean hogs off $8.68.
LIVE CATTLE:
The beauty of Friday is that it welcomes the
weekend and market activity commences for two short days. The losses in
the cattle complex are brutal, both the cash market and the board have
suffered traumatic losses and producers are left like the rest of the
population -- wondering what happens now and when will this all be over.
I spoke with a longtime friend and well
respected cattlemen Thursday; his stakes in the market are greater than
most and so he feels the pain as clearly as everyone else is right now.
When looking back to the market's panic last September, he said, "the
worse thing cattlemen did was starting to look at their assists like
liabilities." He buys thousands of feeders across the West and Midwest
and he said, "I flat out told guys I was out of the market. I wanted to
see where things were headed and I knew that whatever price I offered
them would be a kick to the teeth. But yet they still pressed and
pressed for me to give them bids. I simply told them no and tried to
help them remember that their assets will still be worth something when
this is all over. Telling how long that will be is the tough part, but
you have to hunker down." I know and understand that where the market is
at right now is frightening, but the best decisions are made with a
sound mind.
April live cattle closed $4.50 lower at $95.57,
June live cattle closed $4.50 lower at $89.75 and August live cattle
closed $4.50 lower at $89.17. Nothing significant developed on the cash
cattle side of things. Of the trade that did surface, it was slightly
lower than Thursday's trade. Friday's slaughter is estimated at 101,000
head, 18,000 less than a week ago and 2,000 head less than a year ago.
Saturday's slaughter is projected to be around 44,000 head.
Boxed beef prices closed higher: up $2.13
($208.14) and select up $4.10 ($201.98) with a movement of 153 loads
(97.50 loads of choice, 20.59 loads of select, zero loads of trim and
34.56 loads of ground beef).
MONDAY'S CASH CATTLE CALL: With so many moving variables in the marketplaces right now, it's too early to tell.
FEEDER CATTLE:
Feeder cattle contracts closed sharply lower
settling into the extended limits position. March feeders closed $5.82
lower at $113.00, April feeders closed $6.42 lower at $112.60 and May
feeders closed $6.27 lower at $114.47. Feeder cattle auctions were so
lightly tested that accurate comparisons are challenging to make. Runs
were extremely light because producers knew that the lower board and
coronavirus scare would ultimately affect their profits too. The CME
feeder cattle index 3/12/2020: down $3.13, $127.91.
LEAN HOGS:
Packers are still actively working the cash hog
market, and given the market is where it is in the coronavirus scare,
it's impressive that the cash market pushed prices up at all. The board
realistically didn't have any other option but to trade lower in the
chaos everything has turned into. April lean hogs closed $4.50 lower at
$56.37, June lean hogs closed $4.50 lower at $71.30 and July lean hogs
closed $4.50 lower at $72.50. Friday's slaughter is estimated at 492,000
head, 1,000 head less than a week ago and 58,000 head more than a year
ago. Saturday's slaughter is projected to be around 184,000 head. Pork
cutouts totaled 364.81 loads with 341.35 loads of pork cuts and 23.46
loads of trim. The CME lean hog index 3/11/2020: up $0.57, $58.32.
MONDAY'S CASH HOG CALL: With so many moving variables in the marketplaces right now, it's too early to tell.
 |
| #completecalfcare |
No comments:
Post a Comment