The livestock complex seems to have forgotten to pack last week’s spirit into the early arrival of this week’s trade.
Livestock contracts aren’t willing to glisten with the same shine they boasted last week. Needing to find more traders willing to enter into the livestock complex and still searching for last week’s support — livestock contracts are trading lower Monday morning.
March corn is steady and January soybean meal is up $0.20. The Dow Jones Industrial Average is down 195.85 points and NASDAQ is down 91.70 points.
Live cattle markets are well in suit with the depressed, lower trade that the other livestock contracts are seeing. Despite having a fabulous cash cattle rally last week, contracts etch lower Monday morning unable to rally enough trade volume to muster up support.
December live cattle are down $0.57 at $120.62, February live cattle are down $0.70 at $125.50 and April live cattle are down $0.52 at $125.85. The country still sits quite with asking prices and cash bids not yet established.
Formula totals for last week were lower in all three major feeding states, especially Texas: Kansas 72,966(down 1,865), Nebraska 51,065(down 5,527), Texas 73,418(down 18,335). Total trade volume was also lower in all three major feeding states: Kansas 85,748(down 6,346), Nebraska 76,460(down 12,143), Texas 73,418(down 24,164).
Boxed beef prices are higher: choice up $1.97 ($234.09) and select up $0.40 ($210.74) with a movement of 21 loads (13.52 loads of choice, 4.23 loads of select, zero loads of trim and 3.55 loads of ground beef).
Feeder cattle contracts opened the day steady with last week’s closing mark, dropped lower and have since etched slowly back up. December feeder cattle are down $0.52 at $141.77, March feeders are down $0.42 at $142.60 and April feeders are down $0.30 at $144.67.
Because last week was slow for some sale barns because some took the week off for the holiday, or because some had to close because of the snow storms — sale barns will be up and running this week and will have plenty of calves to sell.
The board may not be up to par early Monday morning, but did you see cash hogs selling $1.09 higher?! Cash hogs have been in a lull for a while now, depressed with an overabundance of supply and no where to go with it.
Regardless of what the Phase One trade agreement is or isn’t, if it’s good or bad – hog producers have heard about all the bearish news they can take and finally caught a glimpse of hope early Monday morning as cash hog prices broke out of the lethargic trading range. December lean hogs are down $1.70 at $60.32, February lean hogs are down $2.52 at $65.67 and April lean hogs are down $1.87 at $72.05.
The projected lean hog index is down $1.00 at $57.35, and the actual lean hog index for 11/27/19 came back at $58.35, down $0.25. Hog prices are up on the National Direct Morning Hog Report, up $1.09 with a weighted average of $43.89, ranging from $40.00 to $45.00 on 5,107 head sold and five-day rolling average of $42.95.
Pork cutouts totaled 80.71 loads of with 69.29 loads of pork cuts and 11.42 loads of trim. Pork cutout values are $2.13 higher at $83.98.