Thursday, September 24, 2020

Thursday Closing Livestock Market Summary - Feeders Move the Cash Cattle Market Higher

 GENERAL COMMENTS:

It was a big day for the livestock market as Thursday saw cattle contracts move higher after trading lower throughout the week. In addition, the unveiling of the quarterly hogs and pigs report was highly sought after. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.36 with a weighted average of $64.71 on 4,230 head. December corn is down 5 cents per bushel and December soybean meal is down $8.10. The Dow Jones Industrial Average is up 52.31 points and NASDAQ is up 39.29 points.

LIVE CATTLE:

As the futures market crept higher, packers started bidding on cattle. October live cattle closed $0.87 higher at $108.02, December live cattle closed $1.07 higher at $112.27 and February live cattle closed $0.85 higher at $115.65. There was a moderate movement in the South for $105, $2.00 higher than last week's average. Northern cattle traded mostly at $165, which is $2.00 higher than Nebraska's average last week. A private source reported that some cattle sold in Colorado for $105, $2.00 higher than last week as well. Thursday's slaughter is estimated at 121,000 head, 2,000 head more than a week ago and 3,000 head more than a year ago. Heading into Friday's trade be ready for the unveiling of this week's Cattle on Feed report. With anticipations of sharply higher placements and more cattle on feed than a year ago, a bearish report is expected.

Thursday's actual slaughter data for the week ending Sept. 12 showed a light slaughter and heavier weights for the beef industry, but remember the report did fall over the week of Labor Day. Actual slaughter totaled 580,575 head, which was down 8.63% from the previous week. Live weights averaged 1,379 pounds (up four pounds from the previous week) and dressed weighted averaged 843 pounds (up two pounds). Steers specifically averaged 920 pounds, and heifers averaged 836 pounds.

Boxed beef prices closed higher: choice up $1.61 ($217.48) and select up $0.14 ($207.74) with a movement of 123 loads (72.49 loads of choice, 21.28 loads of select, 5.49 loads of trim and 24.20 loads of ground beef).

FRIDAY'S CASH CATTLE CALL: Steady. Given that there is now a steady sampling of cattle traded in this week's market, prices will most likely remain at these levels.

FEEDER CATTLE:

The feeder cattle market has done its fair share of trading lower and waiting around to soak up some much-needed support, but thankfully Thursday came around and granted higher trade throughout the marketplace. October feeder cattle closed $0.75 higher at $142.27, November feeders closed $0.70 higher at $142.35 and January feeders closed $0.95 higher at $140.90. At Winter Livestock in Pratt, Kansas, compared to a week ago, feeder steers weighing 600 to 1,000 pounds sold $3.00 to $4.00 higher. Feeder heifers weighing 700 to 900 pounds sold $2.00 to $3.00 lower, and on a light test of heifers weighing under 700 pounds, prices jumped $2.00 higher. Slaughter cows sold steady while slaughter bulls sold $5.00 lower. The CME feeder cattle index for Sept. 23: up $0.31, $142.59.

LEAN HOGS:

The lean hog market had a rough day after being somewhat disappointed in Thursday's export report and trading throughout the day on pins and needles, anxious about the hogs and pigs report. The big takeaways from the quarterly report was a 10% increase in market-ready hogs weighing 180 pounds and more, followed by a decrease in hogs weighing 120 pounds and less. Thankfully packers have been aggressive in their cash hog buying pursuits over the last three weeks but are doing so to secure hog supplies, not because they are in need of hogs here and now. It will be vital for producers to continue to work through the heavier weighted hogs and to keep marketing them to their fullest potential. October lean hogs closed $0.02 lower at $69.47, December lean hogs closed $1.07 lower at $63.27 and February lean hogs closed $0.57 lower at $68.50. Pork cutouts total 276.93 loads with 244.52 loads of pork cuts and 32.41 loads of trim. Pork cutout values: up $3.06, $92.03. Thursday's slaughter is estimated at 485,000 head - 15,000 head more than a week ago and steady with a year ago. The CME lean hog index Sept. 22: up $0.72, $72.89.

Thursday's actual slaughter data for the week ending Sept. 12 showed a light slaughter and heavier weights for the hog industry but remember the report did fall over the week of Labor Day. For the week ending Sept. 12, actual slaughter totaled 2,338,082 head, which was down 5.21% from the previous week. Actual live weights averaged 284 pounds (up two pounds) and average dressed weighted totaled 212 pounds (up two pounds).

FRIDAY'S CASH HOG CALL: Steady to somewhat stronger. With domestic demand pushing cutout values higher, packers have incentives to keep marketing hogs and to keep being vigorous in their buying pursuits.




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