GENERAL COMMENTS:
The livestock complex is trading mixed into midday Friday, as cattle are trading slightly higher, but the hog contracts continue to drift lower. No new cash cattle trade has developed, but some more clean-up trade could surface after the afternoon's Cattle on Feed report is released. December corn is down 1 cent per bushel and January soybean meal is up $0.80. The Dow Jones Industrial Average is up 696.77 points and the NASDAQ is up 252.57 points.
LIVE CATTLE:
After trading sharply lower as traders at first reacted poorly to the news that broke late Thursday afternoon that President Trump has lifted the tariff on Brazilian beef, as odd as it may sound, the market is back to trading higher into Friday's noon hour. December live cattle are up $0.77 at $215.50, February live cattle are up $0.55 at $215.95 and April live cattle are up $0.75 at $216.32. Besides the slightly higher boxed beef prices this morning, it's tough to pinpoint exactly what's giving traders enough support to look beyond Thursday's trade development. Nevertheless, for the sake of cattle producers, higher trade is higher trade, and that's always a win. No new cash cattle trade has developed. Do remember that later this afternoon the monthly Cattle on Feed report will be released.
So far this week, Northern dressed deals have been marked at mostly $345, $6 lower than the prior week's weighted average basis Nebraska, while Southern live deals have been done at $222 to $224, $4 to $6 lower than the previous week's weighted averages.
Boxed beef prices are higher: choice up $0.33 ($371.61) and select up $4.24 ($358.42) with a movement of 105 loads (76.51 loads of choice, 11.64 loads of select, 9.07 loads of trim and 8.00 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is taking more of a cautious approach to Friday's trade, as some of its contracts are trading higher, but the nearby contracts are still trading lower. The feeder cattle complex remains on edge as everyone in the industry knows that eventually the border is going to reopen, which will ripple a negative effect throughout the futures complex, and later this afternoon the monthly Cattle on Feed report is set to be released. January feeders are down $1.32 at $315.22, March feeders are down $0.32 at $308.22 and April feeders are up $0.02 at $306.57.
LEAN HOGS:
The lean hog complex is trading fully lower into midday Friday, as the market, once again, comes up empty-handed in terms of enough fundamental support. December lean hogs are down $1.32 at $78.15, February lean hogs are down $1.32 at $78.32 and April lean hogs are down $1.77 at $81.85. And while yes, pork cutout values may be higher this morning, traders need to see more than one day's worth of higher trade to keep the contracts trading higher.
The projected lean hog index is delayed from the source. Hog prices are down $1.93 on the Daily Direct Morning Hog Report, with a weighted average price of $70.31, ranging from $69.00 to $73.00 on 844 head and a five-day rolling average of $74.35. Pork cutouts total 254.15 loads with 225.29 loads of pork cuts and 28.86 loads of trim. Pork cutout values: up $2.59, $92.80.
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