GENERAL COMMENTS:
Monday came and went with little ruffling its feathers along the way. The complex had a respectable, moderate rally that helped all three livestock contracts close mostly higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.16 with a weighted average of $36.90 on 6,969 head. July corn is up 1 1/2 cents per bushel and July soybean meal is down $2.40. The Dow Jones Industrial Average is up 911.95 points and NASDAQ is up 220.27 points.
LIVE CATTLE:
Live cattle contracts merely floated through the day with little action. The complex closed higher with more support for nearby contracts than deferred. June live cattle closed $1.72 higher at $98.72, August live cattle closed $1.02 higher at $98.85 and October live cattle closed $0.70 higher at $101.05. Cash cattle trade was mostly quiet, though there was some spotty trade on a handful of cattle in Nebraska at $190.00 and on even fewer cattle in Iowa at $180 to $190. Monday's slaughter is estimated at 94,000 head, 8,000 head more than a week ago and 26,000 head less than a year ago.
Boxed beef prices closed lower: choice down $19.37 ($414.95) and select down $24.19 ($394.87) with a movement of 179 loads (104.86 loads of choice, 25.34 loads of select, 17.47 loads of trim and 31.47 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. This week's cash cattle trade is going to be interesting to watch and a lot will depend on slaughter speeds. Knowing that packers bought over 100,000 head last week makes one leery about how packers will manage dwindling boxed beef prices, the growing pressure of the built-up supply and cash prices.
FEEDER CATTLE:
The feeder cattle contracts were able to rally through the day with most of the day's support falling in the spot and nearby contracts. May feeders closed $1.87 higher at $126.60, August feeders closed $1.47 higher at $132.55 and September feeders closed $1.00 higher at $133.75. At Worthing, South Dakota, compared to last week, feeder steers under 800 pounds sold $5.00 to $10.00 higher, with instances of $12.00 higher, and everything over 800 pounds was mostly steady. Feeder heifers were $7.00 to $13.00 higher. There were many smaller strings of lightweight cattle that were met by eager buyers that were willing to chase the market. There were many long strings of backgrounded steers and heifers, and the flesh condition was mostly moderate. The greatest demand was seen for the heifers weighing 600 to 850 pounds and the steers that weighed around 700 pounds. The feeder cattle that will reach finished weights later in the year, or early next year, were much more highly sought after as everyone hopes that the market is at a stable point by that time. The CME feeder cattle index for 5/15/2020: up $0.93, $125.73.
LEAN HOGS:
The lean hog market closed mostly higher but continued to struggle from the noon hour on with the spot and nearby June and July contracts. The further the market went the contracts rallied with more support, but the nearby market neglected to rally with the rest of the livestock complex. June live cattle closed $0.22 lower at $57.65, July lean hogs closed $0.10 lower at $57.65 and August lean hogs closed $0.40 higher at $56.80. Some of the market's excited falls in the deferred months were simply because everyone hopes that, with the packers vigorously trying to work through the built-up supply, the later part of the year will be more promising.
Pork cutouts totaled 404.67 loads with 364.41 loads of pork cuts and 40.27 loads of trim. Pork cutout values: down $2.66, $107.46. Monday's slaughter is estimated at 379,000 head, 22,000 head more than a week ago and 84,000 head less than a year ago. The CME lean hog index for 5/14/2020: down $0.17, $68.70.
TUESDAY'S CASH HOG CALL: Steady to slightly lower. Unfortunately, even with packers trying to kick production speeds back up to a respectable pace (though not there yet) and the board rallying in most of the complex, the market is burdened with an overabundance of supply.
 |
| #completecalfcare |
No comments:
Post a Comment