Friday, September 11, 2020

Friday Closing Livestock Market Update - Livestock Contracts Head Into the Weekend Fully Higher

 GENERAL COMMENTS:

Thanks to the momentum fueled by the lean hog market, the livestock complex closed fully higher. Heading into next week, the cash cattle market is going to be anxious to try to pull off steady trade, and hog producers are hoping the market's support sustains. Hog prices closed higher on the National Direct Afternoon Hog Report, up $1.72 with a weighted average of $54.40 on 8,118 head. December corn is up 3 1/2 cents per bushel and December soybean meal is up $7.10. The Dow Jones Industrial Average is up 131.06 points and NASDAQ is down 66.05 points.

From Friday to Friday livestock futures scored the following changes: October live cattle up $1.08, December live cattle up $1.43; September feeder cattle up $2.35, October feeder cattle up $2.08; October lean hogs up $6.75, December lean hogs up $7.75.

Reflecting upon 9/11 gives Friday's close a whole new sense of realty. We have more wishes than what we care to admit, and by no means do we live in a perfect world, but we are blessed. I watched a video earlier today that was a clip of voicemails from passengers who were calling their loved ones once they realized their situation and their undeniable fate of being upon a hijacked plane. History is humbling, and I think its incredibly important to take the time to stop the busyness of today and honor those whose lives were lost, whose families were forever changed and to give thanks to all the brave men and women who ran into the shattered ruins. American truly is, "home of the free, because of the brave."

LIVE CATTLE:

Friday's live cattle market chimed higher in both arenas; the board not only closed higher, but the Southern Plains were able to move cash prices $1.00 higher than the rest of the week's trade. October live cattle closed $0.42 higher at $105.52, December live cattle closed $0.47 higher at $109.90 and February live cattle closed $0.27 higher at $114.32. Even though the week's trade was mostly $2.00 lower, there's not much better than cash prices scaling ever so slightly higher on a Friday as feeders pushed and marketed their pens to their fullest abilities. Friday was mostly uneventful other than in Texas where over 1,000 head traded for $102 -- $1.00 higher than the rest of the week's trade but $1.00 lower than last week's movement. There was some light clean up trade in Nebraska for $160 to $161 and in Iowa for $161.

Friday's slaughter is estimated at 119,000 head, 4,000 head more than a week ago and 9,000 head more than a year ago. Saturday's kill is projected to be around 95,000 head.

Boxed beef prices closed lower: choice down $0.94 ($219.89) and select down $0.22 ($207.10) with a movement of 164 loads (78.60 loads of choice, 16.15 loads of select, 55.58 loads of trim and 13.52 loads of ground beef).

MONDAY'S CASH CATTLE CALL: Steady. With the end of the week excitement that filtrated the marketplace, feeders are going to fight for steady prices.

FEEDER CATTLE:

Friday's close treated the feeder cattle market well as nearby contracts almost reached $1.00 gains, but closed the day higher, nonetheless. September feeders closed $0.82 higher at $140.00, October feeders closed $0.97 higher at $140.57 and November feeders closed $0.92 higher at $141.32. Despite the weakness surrounding the live cattle sector, the feeder cattle complex was able to slide through with week with considerable demand for yearlings coming off grass, and even moved the board a couple dollars higher. At Herreid Livestock Market in Herreid, South Dakota, compared to two weeks ago, the best tested market was on steers 900 to 950 pounds, which sold $10.00 to $12.00 higher, and steers weighing 951 to 1,050 sold $2.00 to $6.00 higher. The strongest test on heifers was those weighing 800 to 900 pounds, which sold steady to $1.00 higher. Bawling calves have yet to hit the market but its just a matter of time before more start showing up as feed is becoming an issue. The CME feeder cattle index 9/10/2020: up $0.12, $141.10.

LEAN HOGS:

It was a robust week for the lean hog market as gains were seen in every aspect of the business. The market's slaughter ran vigorously, the cash market was vastly stronger, and the leaps and bounds the board made was enormous. October lean hogs closed $2.20 at $66.57, December lean hogs closed $3.15 higher at $66.00 and February lean hogs closed $2.07 higher at $69.47. The concern with the board's momentum is its sustainability. Next week's export report will be insightful and hopefully domestic pork demand continues to only grow stronger. Pork cutouts totaled 347.47 loads with 306.93 loads of pork cuts and 40.54 loads of trim. Pork cutout values: up $0.39, $81.25. Friday's slaughter is estimated at 480,000 head, 29,000 head more than a week ago and steady with a year ago. Saturday's kill is projected to be around 415,000 head. The CME lean hog index 9/9/2020: up $0.52, $62.44.

MONDAY'S CASH HOG CALL: Slightly lower. Heading into a new week, packers may pull back until they have a grasp of what's needed.





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