GENERAL COMMENTS:
Naming what exactly got into the cattle market to push the industry higher on both the board and through the countryside isn't easy this week, but while the opportunity is presenting itself, the market is taking advantage of it. Hog prices aren't comparable to Wednesday's close but the weighted average sits at $36.62, ranging from $35.96 to $45.00 on 7,308 head sold. July corn is up 3 3/4 cents per bushel and July soybean meal is steady. The Dow Jones Industrial Average is up 211.25 points and NASDAQ is up 125.27 points.
LIVE CATTLE:
Live cattle contracts took full advantage of expanded limits in nearby contracts while the rest of the complex closed fully higher as well. June live cattle closed $4.50 higher at $93.97, August live cattle closed $4.50 higher at $99.95 and October live cattle closed $4.50 higher at $104.02. As support and optimism seem to be flying around cattle contracts, putting your finger on the key source is difficult through the chaos the market is in amid COVID-19. Rallying support could be from the President's call to the DOJ, while it could also be a ripple effect of a growing slaughter and optimism that plants are coming back sooner rather than later -- or it could also be support running off the cash rally from Wednesday afternoon. Regardless of the reason, no one is complaining. The countryside was mostly quiet throughout Thursday. There was some scattered trade that developed in the North at mostly steady money while the South was dead quiet. Thursday's slaughter is estimated at 86,000 head, up 6,000 head from a week ago and down 32,000 head from a year ago.
Boxed beef prices closed higher: choice up $9.36 ($458.54) and select up $16.61 ($448.57) with a movement of 95 loads (53.54 loads of choice, 12.91 loads of select, 13.89 loads of trim and 14.85 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. There could be some more trade that develops in the North but for the most part the week's prices are already set and Friday's market should bear too many surprises. If it does happen to light up like Wednesday afternoon did, no one will be complaining!
FEEDER CATTLE:
The board's rally is impressive but how sales performed throughout the countryside may have been even more exciting. May feeders closed $6.17 higher at $130.27, August feeders closed $5.40 higher at $138.15 and September feeders closed $5.07 higher at $139.02. At Winter Livestock in Pratt, Kansas, compared to last week, yearling steers sold $4.00 to $5.00 higher with 750 to 800 pound steers $12.00 to $14.00 higher. Yearling heifers sold $10.00 to $12.00 higher. And there wasn't an accurate test for steer or heifer calves. The CME feeder cattle index 5/6/2020: not available at this time.
LEAN HOGS:
Lean hog contracts shifted to the back burner while the cattle contracts skyrocketed. Seeing that both industries are struggling with built up supply, the cattle complex seems to just be where the attention is building right now with the jump in cash prices and attention from the President. June lean hogs closed $1.67 lower at $63.90, July lean hogs closed $0.30 lower at $63.50 and August lean hogs closed $0.52 lower at $62.65. Pork cutouts total 223.84 loads with 202.82 loads of pork cuts and 21.03 loads of trim. Pork cutout values: up $1.68, $116.74. Thursday's slaughter is estimated at 320,000 head, 37,000 head more than a week ago and 153,000 head less than a year ago. The CME lean hog index 5/5/2020: up $1.99, $62.34.
FRIDAY'S CASH HOG CALL: Steady. Seeing that over 7,000 hogs were bought Thursday afternoon is a good sign that packers are somewhat interested in buying, but heading into the weekend is a catch because its even harder to get employees to come and work a Saturday shift.
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