Livestock contracts head into Tuesday’s noon hour trading fully higher in all three contracts.
It’s looking as if Tuesday trade is every bit as ready to rally support and push contracts as Monday was. All three livestock contracts stride into the noon hour limit higher. Cash hog prices were able to jump a little Tuesday morning, now the attention shifts to the cash cattle market to see if the board’s progression will help that sector at all this week.
May corn is up 5 1/4 cents per bushel and May soybean meal is down $1.90. The Dow Jones Industrial Average is up 728.66 points and NASDAQ is up 171.78 points.
Live cattle contracts jumped $4.50 higher right off the bat and head into the noon hour with the same confidence. April live cattle are up $4.50 at $88.32, June live cattle are up $4.50 at $84.80 and August live cattle are up $4.50 at $89.32. Early asking prices of $115 have been set in the South and $180 in the North.
Unfortunately, there has already been some trade developing in parts of Texas at $105 which is $4.00 lower than last week’s weighted average — not enough to set a trend for the week, but trade nevertheless. For Wednesday’s Fed Cattle Exchange there is another large offering of 8,136 head with an even blend of readily available cattle and some with extended delivery.
Boxed beef prices are mixed: choice down $3.27 ($226.78) and select up $2.73 ($217.76) with a movement of 98 loads (61.52 loads of choice, 14.31 loads of select, 9.84 loads of trim and 11.92 loads of ground beef).
Feeder cattle prices are pushing the limit, supporting contracts upwards of $4.50 higher throughout the entire complex. April feeders are up $4.50 at $114.92, May feeders are up $4.50 at $113.80 and August feeders are up $4.50 at $121.00. The week is still early but if the complex can keep the support that the early part of the week has established — confidence may start to develop once again.
The lean hog market has had a fruitful day as both the morning cash market and the board trade higher. April lean hogs are up $3.00 at $44.12, June lean hogs are up $3.00 at $52.65 and July lean hogs are up $3.00 at $57.77.
Cash hogs bought in the last few trading days were pretty slim, which is most likely stemming from the uncertainty with how packing plants are going to handle the Columbus Junction plant in Iowa halting production, coupled with the problem of not having employees showing up for work.
The projected lean hog index for 4/6/2020 is down $2.13 at $55.52, and the actual index for 4/3/2020 is down $3.00 at $57.65. Hog prices are higher on the National Direct Morning Hog Report, up $0.31 with a weighed average of $43.15, ranging from $42.00 to $43.50 on 2,567 head sold and a five-day rolling average of $47.52.
Pork cutouts total 236.68 loads with 203.75 loads of pork cuts and 32.93 loads of trim. Pork cutout values: down $0.95, $56.74.