Cattle Contracts Hesitant of COF Report
Cattle contracts are left with no option but to trade lower as traders fear Friday’s Cattle on Feed Report.
The cattle complex is left trading lower as the market is hesitant about Friday’s afternoon Cattle on Feed Report. Throughout the countryside a few more cash cattle bids have been renewed in parts of Kansas and Nebraska, but thus far they simply remain as bids. The lean hog market is seeing strong, positive trade throughout nearby contracts, and some modest gains throughout deferred contracts. December corn is up 3 3/4 cents per bushel and December soybean meal is up $2.50. The Dow Jones Industrial Average is up 44.25 points and NASDAQ is up 107.08 points.
The live cattle contracts are feeling some modest pressure from the board as contracts dipping $0.07 to $0.60 lower. The live cattle complex feels like it’s left balancing two different signals as the week concludes. Following Thursday’s strong cash advancement, the market should be robust and confident, but with weakness plaguing the board and a bearish COF report expected to round out Friday’s business, the market braces cautiously. October live cattle are down $0.05 at $107.97, December live cattle are down $0.45 at $111.82 and February live cattle are down $0.65 at $115.00. Friday’s cash cattle trade is still mostly quiet as bids of $105 are offered in Kansas, and bids of $104 to $106, as well as $164 to $165 are offered in Nebraska. Some more trade should develop before the day’s end.
Boxed beef prices are mixed: choice up $1.74 ($219.22) and select down $0.37 ($207.37) with a movement of 67 loads (32.54 loads of choice, 17.48 loads of select, 10.56 loads of trim and 6.07 loads of ground beef).
Another day of looming pressure sends the feeder cattle contracts lower as the market searches for support while trying to secure position amid a $0.03 corn rally. October feeders are down $0.75 at $141.52, November feeders are down $0.75 at $141.60 and January feeders are down $0.75 at $140.20. Knowing that placements are expected to be significantly higher than a year ago on Friday’s COF report, the feeder cattle market sits patiently, trending lower throughout Friday’s morning trade.
Rebounding from Thursday’s reports and the lack of trader interest, the lean hog complex is seeing substantial gains in nearby contracts and modest support through deferred contracts. October lean hogs are up $2.32 at $71.80, December lean hogs are up $1.42 at $64.70 and February lean hogs are up $1.10 at $69.60. The followed through support from the cash market and modest growth through the cutout value helped solidify the fact that the market was OK, and able to continue with advancing.
The projected two-day lean hog index for 9/24/2020 is up $0.83 at $74.53, and the actual index for 9/23/2020is up $0.81 at $73.70. Hog prices are higher on the National Direct Morning Hog Report, up $0.41 with a weighted average of $65.01, ranging from $60.00 to $65.01 on 8,193 head and a five-day rolling average of $63.26. Pork cutouts total 252.10 loads with 225.18 loads of pork cuts and 26.92 loads of trim. Pork cutout values: up $0.91, $92.94.