GENERAL COMMENTS:
Other than the excitement in cash hog trade, Monday was lackadaisical and relaxed. All three livestock markets closed mostly lower and cash cattle trade has yet to develop. Hog prices closed exceptionally stronger, up $4.76 on the National Direct Afternoon Hog Report, equating to a weighted average of $42.65 on 16,847 head. December corn is down 1/2 cent per bushel and December soybean meal is up $2.90. The Dow Jones Industrial Average is up 114.88 points and NASDAQ is up 173.09 points.
LIVE CATTLE:
Live cattle contracts weren't impressed with how Monday progressed and closed the day fully lower. August live cattle closed $0.90 lower at $100.42, October live cattle closed $1.27 lower at $103.82 and December live cattle closed $1.25 lower at $108.07. Monday's slaughter is estimated at 117,000 head -- steady with a week ago and 3,000 head less than a year ago. Cash cattle trade was as typical and boring as a Monday can get as packers inquired on cattle, but no cattle traded. Asking prices in the North appear to be $162 for dressed cattle and $102 for live cattle.
Boxed beef prices closed mixed: choice up $0.78 ($202.55) and select down $0.50 ($190.13) with a movement of 94 loads (57.86 loads of choice, 18.99 loads of select, 9.28 loads of trim and 8.08 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Slightly stronger. Seeing that feeders have lighter showlists and that they were able to move the market $1.00 stronger last week leads one to believe the market will have a stronger undertone this week.
FEEDER CATTLE:
Feeder cattle contracts struggled Monday afternoon, falling $2.00 to $3.00 lower in nearby contracts, but still able to hold minimal gains in deferred contracts. August feeders closed $2.70 lower at $139.35, September feeders closed $3.12 lower at $139.62 and October feeders closed $2.12 lower at $140.67. At Joplin Regional Stockyards, compared to a week ago, steers under 700 pounds sold steady to $2.00 higher and steers over 700 pounds sold steady. Heifers under 650 pounds sold steady while the heavier heifers weighing 650 pounds or more sold steady to $2.00 higher. This week's run was slightly smaller than last week's, but demand was still strong enough to push some weight groups into higher prices. This week's feeder cattle market will be well tested again as the ball rolls from Northern Livestock to Superior this week. Hosting their Video Royale sale, Superior ramps up to sell right at 195,500 head this week. The sale will mostly be of weaned calves, but there's a strong sampling of both yearling steers and heifers as well as unweaned calves. The CME feeder cattle index 7/24/2020: up $0.56, $139.99.
LEAN HOGS:
With the added strength from the cash market, the nearby lean hog contracts were able to close stronger while the rest of the lean hog complex closed modestly lower. August lean hogs closed $0.55 higher at $54.55, October lean hogs closed $0.60 higher at $50.75 and December lean hogs closed $0.37 lower at $51.55. The cash hog market was phenomenal Monday, selling hogs considerably stronger and on a large volume traded. As the market etches closer to the end of summer and early part of fall, the hog sector is feeling the positive ramifications of a strong 2020 slaughter. Year to date, thus far 2020 has processed 0.6% more hogs than at this time a year ago. As slaughter keeps running vigorously, the hog market gets closer to having the backlog processed through, which will obviously elevate cash hog prices when achieved. Pork cutouts totaled 327.35 loads with 300.09 loads of pork cuts and 27.26 loads of trim. Pork cutout values: up $0.77, $71.30. Monday's hog slaughter is estimated at 477,000 head -- 7,000 head more than a week ago and 27,000 head more than a year ago. Saturday's hog slaughter was revised to 225,00 head. The CME lean hog market 7/23/2020: up $0.44, $50.13.
TUESDAY'S CASH HOG CALL: Steady. After Monday's ginormous jump in cash prices, it would be tough to beat Monday's ambition again this early in the week unless packers are simply short bought.
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