Friday, July 31, 2020
Thursday, July 30, 2020
Wednesday, July 29, 2020
Wednesday offered the marketplace wins throughout all three sectors. The cattle contracts were able to close higher, cash cattle prices were a tick stronger, and even though cash hog prices were lower, the number of hogs moving through the supply chain is commendable and exciting for the marketplace. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.37 with a weighted average of $42.30 on 15,566 head. December corn is down 3 3/4 cents per bushel and December soybean meal is down $1.70. The Dow Jones Industrial Average is up 160.29 points and NASDAQ is up 140.85 points.
The live cattle contracts were able to keep support and momentum through the day's close and thankfully closed higher. August live cattle closed $0.55 higher at $101.45, October live cattle closed $1.05 higher at $106.05 and December live cattle closed $1.07 higher at $109.95. The live cattle market's 40-day moving average sits at $97.83 and the 100-day moving average sits at $96.18. After Wednesday morning's Fed Cattle Exchange, trade loosened up and packers and feeders started working deals. Throughout most of the Southern Plains, cattle traded for $97.00 to $97.50, which was mostly $1.00 stronger than last week's weighted average. In the Northern Plains, feeders were able to move cattle for $160, $2.00 higher than last week. Despite Wednesday's trade, some feeders are holding their ground and still have asking prices at $98 to $100 in the south and $162 in the north. Wednesday's slaughter is estimated at 119,000 head, 2,000 head more than a week ago and 2,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $1.85 ($201.11) and select up $1.17 ($189.49) with a movement of 174 loads (100.13 loads of choice, 26.72 loads of select, 15.70 loads of trim and 31.04 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steadily to slightly stronger. Thankfully the cattle that have already sold this week are for, on average, greater money than a week ago, but of the feeders that have yet to sell, most of them seem firm on their asking prices.
Feeder cattle contracts kept with their earlier set pace of steadily higher all through Wednesday's trade. August feeder cattle closed $1.27 higher at $141.97, September feeder cattle closed $1.27 higher at $142.57 and October feeder cattle closed $1.32 higher at $143.25. Currently the feeder cattle 40-day moving average sits at $135.79 and the 100-day moving average sits at $127.59. At OKC West Livestock Auction in El Reno, Oklahoma, compared to last week, feeder steers sold steady to $3.00 lower and feeder heifers sold $2.00 to $4.00 lower. Steer and heifer calves were not well tested, but lower undertones were noted there as well. Thankfully the state has recently received some rain fall and cooler temperatures, which is helping to lessen the stress on cattle. The CME feeder cattle index 7/28/2020: up $0.06, $139.83.
The lean hog contracts closed mostly in a disappointing fashion, closing anywhere from $0.50 to $1.12 lower. August lean hogs closed $1.12 lower at $53.07, October lean hogs closed $0.90 lower at $49.82 and December lean hogs closed $0.77 lower at $51.02. Even though the cash prices were lower, selling upwards of 15,566 head is a win for the market. With the backlog of hogs, getting product worked through the system is a high priority. Pork cutouts total 334.92 loads with 303.98 loads of pork cuts and 30.94 loads of trim. Pork cutout values: down $1.50, $67.91. Wednesday's slaughter is estimated at 477,000 head, 5,000 head more than a week and year ago. The CME lean hog index 7/27/2020: up $0.87, $51.10.
THURSDAY'S CASH HOG CALL: Steady. Thursday's cash hog market may be slightly lower to steady, but if the market can once again move a steep volume of hogs, it's a strong win for the industry.
October live cattle are up $0.70 at $105.7, August feeder cattle are up $0.63 at $141.325, August lean hogs are down $1.48 at $52.725, December corn is down 2 3/4 cents per bushel and December soybean meal is down $1.50. The Dow Jones Industrial Average is up 98.28 points and NASDAQ is up 105.34 points. Thus far Wednesday has been a methodical day, trading steadily higher in cattle contracts but leaving the lean hog contracts to trade $1.00 lower through most of the complex. Cash cattle trade is starting to develop at mostly $1.00 higher throughout the Northern and Southern plains.
Live cattle contracts have traded steadily higher all throughout Wednesday's morning hours. Aided by the strength rallying in the feeder cattle complex both on the board and throughout the nation's sales, the market has scaled steadily higher and has been accompanied by slightly stronger cash cattle sales. August live cattle are up $0.37 at $101.27, October live cattle are up $0.80 at $105.80 and December live cattle are up $0.57 at $109.47. Cash cattle trade started the day out with Wednesday's Fed Cattle Exchange where there was a good test of the market and after the online sale some interested was noticed throughout the countryside. There have been a few deals reported by a Regional packer in Nebraska for $160, and some light traded developed in Texas for $97.
The Fed Cattle Exchange Auction listed a total of 1,507 head, with 1,245 actually sold, 262 head listed as unsold, and zero head listed as PO (Passed Offer). Only Kansas and Texas were offering cattle today, the breakdown looks like this: Kansas 622 total head, with 360 head sold at $97.00-$97.50, which left 262 head unsold; Texas 885 total head, all of which sold at $97.00-$97.50. The delivery date/weighted averages breakdown is as listed: 1-9-day delivery: 738 head total, 550 head sold, with a weighted average price of $97.50; 1-17-day delivery 769 head total, 695 head sold, with a weighted average price of $97.14.
Boxed beef prices are mixed: choice down $1.32 ($201.64) and select up $0.62 ($188.94) with a movement of 108 loads (69.15 loads of choice, 17.30 loads of select, 4.98 loads of trim and 17.01 loads of ground beef).
The feeder cattle contracts are leading the upward trend in the cattle market as their support is duly noted -- optimism and strength transpiring on the board, and plenty of buyer interest through this week's sales. The market's ambition will be pressured once again by the strong resistance embedded at $144. August feeder cattle are up $0.82 at $141.52, September feeders are up $1.07 at $142.37 and October feeders are up $1.07 at $143.00.
Not seeming to be able to muster the support needed to move contracts higher, the lean hog complex dips lower again heading into Wednesday's afternoon hours. August lean hogs are down $1.25 at $52.95, October lean hogs are down $1.07 at $49.65 and December lean hogs are down $0.95 at $50.85. Midday cash prices were disappointing as the market's been extremely aggressive earlier in the week, but with packers buying such vast volumes of hogs, the weaker trade come Wednesday makes sense.
Hog prices are lower on the National Direct Morning Hog Report, down $1.28 with a weighted average of $41.39, ranging from $37.00 to $44.00 on 4,578 head and a five-day rolling average of $39.73. Pork cutouts total 193.60 loads with 173.59 loads of pork cuts and 20.01 loads of trim. Pork cutout values: up $0.79, $70.20.