Thus far the day has been a mixed bag for the livestock sector; cattle contracts are struggling while the lean hog market rallies.
Friday is shaping up to be a strong day for the lean hog market as contracts rally well over $1.00 but the cattle contracts unfortunately can’t say the same. Both live cattle and feeder cattle contracts fight pressure in nearby contracts as uncertainty continues to plague the industry. July corn is up 2 cents per bushel and July soybean meal is down $0.80. The Dow Jones Industrial Average is up 876.30 points and NASDAQ is up 204.73 points.
Live cattle contracts are trading substantially lower as Friday nears the noon hour. Thursday afternoon cash cattle traded as low at $105 which hasn’t helped the market’s morale which is now engulfing Friday’s trade. June live cattle are down $1.50 at $94.22, August live cattle are down $1.37 at $96.55 and October live cattle are down $1.10 at $99.77. The cash cattle market sits very, very quiet as bids and asking prices are obsolete. Seeing that trade has transpired all through out the week and then weakened come Thursday, business could be done for the week.
Boxed beef prices are lower: choice down $6.42 ($265.84) and select down $5.98 ($254.43) with a movement of 59 loads (43.80 loads of choice, 7.36 loads of select, zero loads of trim and 7.45 loads of ground beef).
Feeder cattle contracts are feeling vulnerable to the live cattle market’s weakness and the limited number of traders invested into the market isn’t helping either. August feeders are down $0.95 at $133.77, September feeders are down $1.07 at $135.42 and October feeders are down $0.97 at $136.30. Heading into June and nearing the official summer season has welcomed warmer weather, which is bothersome to a lot of cattlemen as some pastures are already looking dry.
The cattle contracts may be sliding backwards instead of rallying into the later part of the week but the lean hog contracts trade optimistically instead. The spot June contract is fighting a little pressure but for the most part the industry is rallying well over $1.00. June lean hogs are down $0.12 at $48.30, July lean hogs are up $1.12 at $54.70 and August lean hogs are up $1.75 at $57.50.
The projected lean hog index for 6/3/2020 is down $1.68 at $55.38 and the actual index for 6/2/2020 was down $2.17 at $57.06. Hog prices are lower on the National Direct Morning Hog Report, down $1.01 with a weighted average of $31.96, ranging from $28.00 to $34.00 on 4,221 head and a five-day rolling average of $33.93. Pork cutouts total 267.55 loads with 256.80 loads of pork cuts and 10.75 loads of trim. Pork cutout values: up $2.90, $77.75.