General Comments
Some
livestock contracts are taking another swing at the market before the
week closes and heads into the weekend. Feeder cattle and lean hog
contracts are taking advantage of the momentum while the live cattle
contracts are hesitant. December corn is down 3 cents per bushel and
December soybean meal is down $1.10. The Dow Jones Industrial Average is
down 40.37 points and NASDAQ is down 39.31 points.
LIVE CATTLE
Live
cattle contracts aren't seeing the same support and momentum as the
other livestock contracts are heading into Friday afternoon. August live
cattle are up $0.40 at $103.02, October live cattle are down $0.20 at
$106.75 and December live cattle are down $0.55 at $110.40. Cash cattle
trade has been mostly quiet as packers and feeders play tug-of-war with
this week's prices in the North. There's been light inquiry on cattle
all throughout the day and some cattle sold in Colorado for $103, and in
Iowa for $164 dressed and $103 live. It wouldn't be surprising to see
more trade develop through the afternoon in the Northern Plains.
Boxed
beef prices are higher: choice up $0.33 ($204.99) and select up $0.78
($192.79) with a movement of 62 loads (32.92 loads of choice, 8.93 loads
of select, 8.53 loads of trim and 11.31 loads of ground beef).
FEEDER CATTLE
Feeder
cattle contracts are enjoying the modest gains in deferred contracts,
but the weakness in nearby contracts is disappointing. Last Friday,
nearby contracts shot through resistance at $143.85 and cattle
enthusiasts prayed that the market would be able to keep prices elevated
beyond that threshold as sales throughout the countryside continue to
move higher. As this week progressed, a toppy chart started to form and
with Thursday's lower close, prices once again sank below the resistance
plane. Friday's trade has pushed nearby contracts lower and regardless
of the phenomenal strength throughout the country, the nearby contracts
keeping trading lower. August feeder cattle are down $0.62 at $142.85,
September feeder cattle are down $0.32 at $145.55 and October feeder
cattle are down $0.07 at $146.70.
LEAN HOGS
Lean
hog contracts are firing higher heading into Friday afternoon as
support from pork cutouts is strengthening the market along with the
hope that the government aid package may have specific subsidies for hog
producers who are battling hardship because of the backlog. Seeing
nearby contracts jump above the $50.00 threshold is exhilarating for the
market as contracts have simply been unable to break free from the
resistance. August lean hogs are up $1.37 at $51.12, October lean hogs
are up $2.20 at $51.40 and December lean hogs are up $1.57 at 53.07.
Producers will be watching the board meticulously throughout the
afternoon hoping that the support can carry into the day's close and
potentially spur the market higher early next week.
The
projected lean hogs index for 8/6/2020 is down $0.34 at $52.44 and the
actual index for 8/5/2020 is down $0.14 at $52.78. Hog prices are higher
on the National Direct Morning Hog Report, up $0.33 with a weighted
average of $38.27, ranging from $35.00 to $38.61 on 3.792 head and a
five-day rolling average of $39.28. Pork cutouts total 193.67 loads with
163.78 loads of pork cuts and 29.89 loads of trim. Pork cutout values:
up $3.04, $73.84.
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