Friday, May 8, 2020

Friday Midday Livestock Market Summary - The Board Veers Lower While Cash Markets Jump

GENERAL COMMENTS
Friday's ambition quickly ran short as cattle contracts are trading mostly lower and the lean hog complex traded simply lower from the get-go. The board may be running out of steam but the industry's cash markets aren't as easily exhausted this week as the hog market jump almost $2.00 higher Friday morning and the cash cattle market jumped another $5.00 in the South Friday morning, pushing prices $15 higher than last week's average in the Southern Plains. July corn is up 4 1/2 cents per bushel and July soybean meal is up $3.10. The Dow Jones Industrial Average is up 352.39 points and NASDAQ is up 126.96 points.

LIVE CATTLE
June and August live cattle contracts are hanging in there while the rest of the complex trades at least $1.00 lower. June live cattle are up $2.37 at $96.37, August live cattle are up $0.22 at $100.17 and October live cattle are down $0.67 at $103.27. Given the robust jump the market made over the last two days it makes sense that trades are leery about jumping prices higher again heading into the weekend. But regardless of what the board is doing, cash cattle prices have jumped higher again in the South. The first round of trade in the South came as a surprise as prices were $10 higher than last week but another round of fats sold Friday morning in the South for $115, pushing prices $15 higher than last week's weighted average.

Boxed beef prices: choice up $2.86 ($461.40) and select up $3.39 ($451.96) with a movement of 65 loads (28.74 loads of choice, 5.39 loads of select, 20.18 loads of trim and 10.41 loads of ground beef).

FEEDER CATTLE
Feeder cattle contracts were leery to push prices much higher than Thursday's enormous rally and have since tipped the scales lower. May feeders down $1.95 at $128.32, August feeders down $1.27 at $136.85 and September feeders down $1.10 at $137.92. The board's regression shouldn't heavily affect sale barns sales through Friday and Saturday as the day's market seems to simply be catching its breath after a strong advancement over the last couple of days.

LEAN HOGS
The lean hog complex is feeling some pressure around $66.00 and has gently backed off over the last couple of days. Thankfully the board's timid action isn't affecting the cash market as prices jumped substantially higher Friday morning. June lean hogs are down $1.27 at $62.62, July lean hogs are down $1.92 at $61.57 and August lean hogs are down $2.15 at $60.50.

The projected lean hog index for 5/7/2020 is up $0.78 at $67.00 and the actual index for 5/6/2020 is up $3.84 at $66.22. Hog prices jumped higher Friday morning, up $1.73 with a weighted average of $38.38, ranging from $33.50 to $45.00 on 3,062 head sold and a five-day rolling average of $36.84. Pork cutouts total 184.34 loads with 165.87 loads of pork cuts and 18.47 loads of trim. Pork cutout values: up $1.20, $117.94.


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