Friday Closing Livestock Market Summary - Livestock Contracts Earned Their Weekend

GENERAL COMMENTS:

It was a busy week for the livestock complex as the board was rearing to trade higher through some contracts, the cash market was higher for both cash cattle and feeders and the lean hog complex even secured higher prices for the week on both the board and the cutout value. Heading into next week, the market is going to fight some pressure as this week was determined to only trade higher. Hog prices were higher on the National Direct Afternoon Hog Report, up $0.09 with a weighted average $37.60 on 6,466 head. October lean hogs are up $0.68 at $53.025, December corn is down 3/4 cent per bushel and December soybean meal is down $0.20. The Dow Jones Industrial Average is up 34.30 points and NASDAQ is down 23.20 points.

From Friday to Friday, livestock futures scored the following changes: August live cattle up $4.80, October live cattle up $3.78; August feeder cattle up $1.20, September feeder cattle up $1.45; August lean hogs up $2.83, October lean hogs up $2.05.

LIVE CATTLE:

The live cattle market had a powerhouse week! The board closed higher throughout most of the week, boxed beef prices scaled higher and cash cattle trade was on fire. Friday's board fought some last-minute pressure, but for the most part the complex closed steady to slightly higher. August live cattle closed $0.55 higher at $107.60, October live cattle closed $0.07 stronger at $110.22 and December live cattle closed steady at $112.82. Cash cattle trade was higher throughout the week with southern cattle selling for $104 to $105, which was fully $4.00 to $5.00 higher than last week's average. The nail-biting trade came Friday morning when the North had yet to sell any cattle. But around Friday's noon hour, cattle sold and prices market $168, which was $5.00 higher. Friday's slaughter is estimated at 112,000 head, up 3,000 head from the previous week and down 3,000 head from a year ago. Saturday's slaughter is projected to be 63,000 head.

Boxed beef prices closed higher: choice up $3.29 ($214.24) and select up $1.88 ($199.29) with a movement of 126 loads (71.91 loads of choice, 22.10 loads of select, 15.18 loads of trim and 16.82 loads of ground beef).

MONDAY'S CASH CATTLE CALL: Slightly higher. As boxed beef prices scaled higher, having more confidence in next week's cash market is easier to do knowing that a three-day weekend is right around the corner. Packers will be eager to move product as prices are inching higher and knowing all too well that Labor Day is their last big grilling holiday.

FEEDER CATTLE:

Feeder cattle contracts rallied relentlessly early in the week, but as Wednesday closed the market felt upward resistance building and closed lower both Thursday and Friday. Next week both Superior Livestock Auction and Western Video Market are hosting two phenomenal, early fall feeder cattle specials. The board was fully supported through the feeder cattle sales this week, but with next week's large volume of calves and feeders to trade -- if technical support allows for it -- the complex could move even higher. August feeders closed $1.02 lower at $143.92, September feeders closed $0.80 lower at $146.57 and October feeders closed $1.05 lower at $147.42.

Nebraska's weekly livestock auction shared that, compared to last week, steers from 500 to 800 pounds sold $5.00 to $9.00 higher and steers over 800 pounds sold unevenly steady. Heifers under 900 pounds sold $7.00 to $10.00 higher and heifers over 900 pounds sold fully steady. Most buyers this time of year like procuring yearlings off summer grass as the

cattle should perform in the feedlot with good compensatory gains. The CME feeder cattle index 8/13/2020: up $0.15, $142.25.

LEAN HOGS:

The lean hog complex was lagging early in the week but kicked it into high gear for Thursday and Friday's trade to close the week higher. August lean hogs closed $0.12 higher at $53.82, October lean hogs closed $0.67 higher at $53.02 and December lean hogs closed $0.27 higher at $54.62. If packers are able to move more product and get paid more for the meat, their willingness to buy hogs (and to even buy hogs for more money) is beneficial to producers as they have the opportunity to not only move hogs, but for potentially higher prices. A lot of the strength in the cutout value is coming from pre-Labor Day buying, so watching how prices carry after the three-day holiday will be important. Pork cutouts totaled 357.55 loads with 290.53 loads of pork cuts and 67.02 loads of trim. Pork cutout values: up $1.17, $74.93. Friday's slaughter is estimated at 472,000 head, down 2,000 head from the previous week and 18,000 head more than a year ago. Saturday's slaughter is projected to be around 219,000 head. The CME lean hog index 8/12/2020: down $0.34, $53.48.

MONDAY'S CASH HOG CALL: Slightly higher. With Friday's stronger close on the board and higher close for cutout prices, the market could see some higher bids through Monday's trade as packers are preparing for Labor Day.

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