GENERAL COMMENTS:
The
livestock complex more or less checked out Thursday afternoon after
feeder cattle sales were finished and the hogs and pigs report was
released. Friday traded mostly uneventful through the day, seeming to
look for the weekend and without much interest. Hog prices closed lower
on the National Direct Afternoon Hog Report, down $0.18 with a weighted
average of $28.48 on 6,201 head. July corn is down 1/4 cent per bushel
and July soybean meal is down $3.40. The Dow Jones Industrial Average is
down 730.05 points and NASDAQ is down 259.78 points.
From
Friday to Friday, livestock futures scored the following changes: June
live unchanged, August live cattle up $0.63; August feeder cattle up
$0.05, September feeder cattle down $0.10; July lean hogs down $3.18,
August lean hogs down $4.68.
LIVE CATTLE:
Live
cattle closed lower Friday afternoon with nearby contracts faring
better than deferred. Unfortunately, as the industry grapples with
knowing that there is a surplus of cattle lining the bunks of feedlots,
cash cattle prices are bound to drop lower. August live cattle closed
$0.05 lower at $96.02, October live cattle closed $0.17 lower at $99.47
and December live cattle closed $0.47 lower at $103.07. This week was
rough on the cash cattle market as this week's trade ranged from $152 to
$156 dressed in the North ($5.00 to $11.00 cheaper than a week ago) and
live cattle traded for $93 to $97 ($5.00 cheaper than a week ago) in
the South. Friday's slaughter is estimated at 119,000 head, steady with a
week ago and 2,000 head shy of a year ago. Saturday's kill is projected
to be around 82,000 head, 23,000 head more than a week and year ago.
This
week's kill is estimated at an enormous 680,000 head, which is 3.7%
greater than a week ago and 1.5% greater than a year ago. The USDA
shared that the last time cattle slaughter exceeded 680,000 head was for
the week ending March 28, 2020, which totaled exactly 684,835 head.
Slaughter speeds are anticipated to be higher due to next week being the
Fourth of July holiday, as plants know that next week's production may
be limited.
Boxed beef prices closed lower:
choice down $1.09 ($207.17) and select down $1.08 ($198.85) with a
movement of 135 loads (61.28 loads of choice, 18.29 loads of select,
22.53 loads of trim and 32.88 loads of ground beef).
MONDAY'S
CASH CATTLE CALL: Lower. With looming supply burdening the industry,
cash cattle prices are going to get worse before the get better.
FEEDER CATTLE:
Cheap
corn and the ruthless will of a cattle feeder's heart rallied feeder
cattle sales this week. The two large sales that took place Thursday
throughout the countryside surprised most as prices were easily $6.00 to
$12.00 stronger than anticipated. Feeder cattle contracts closed lower
Friday afternoon, with deferred contracts taking a bigger hit than
nearby contracts. August feeders closed $0.65 lower at $132.60,
September feeders closed $0.72 lower at $133.77 and October feeders
closed $0.72 lower at $134.72. The market closed above both the 40-day
moving average ($129.98) and the 100-day moving average ($127.00).
The
USDA reported that for South Dakota's Weekly Cattle Auction Summary,
compared to last week, feeder steers and heifers sold steady to $2.00
higher with a few instances of $3.00 to $5.00 higher on light fleshed
heifers. Demand was good for yearlings and heifers as well. The CME
feeder cattle index 6/25/2020: up $0.22, $130.04.
LEAN HOGS:
Thursday's
bearish quarterly hogs and pigs report didn't help the complex
whatsoever come Friday. Lean hog contracts scaled lower closing $1.15 to
$3.52 lower throughout the entire complex. July lean hogs closed $1.65
lower at $45.27, August lean hogs closed $3.20 lower at $48.12 and
October lean hogs closed $3.52 lower at $47.00.
Pork
cutouts totaled 482.18 loads with 436.98 loads of pork cuts and 45.20
loads of trim. Pork cutout values: up $0.90, $65.95. Friday's slaughter
is estimated at 472,000 head,15,000 head greater than a week ago and
19,000 head greater than a year ago. Saturday's slaughter is projected
to be 323,000 head. This week's hog kill is estimated at 2,641,000 head,
which is 2.1% greater than a week ago and a substantial 10.7% above a
year ago. The CME lean hog index 6/24/2020: down $0.23, $44.87.
MONDAY'S
CASH HOG CALL: Lower. With supply being bountiful, cash prices are
going to suffer as packers won't have to work at getting hogs.
 |
| #completeherdhealth |
No comments:
Post a Comment