Livestock Contracts Seeing Some Support
Following last week’s bitter trade, Monday has been a little more fruitful for the livestock complex as all three markets are trading mostly higher.
Looking toward the afternoon the live cattle complex is trading mostly higher following last week’s depressing trade. The lean hog market has changed from trading solidly lower earlier in the day to rallying modestly. The feeder cattle market is keeping its upward progression and though most of the live cattle market is doing the same — some nearby contracts are facing pressure. December corn is down 1 1/2 cents per bushel and December soybean meal is down $1.90. The Dow Jones Industrial Average is down 741.71 points and NASDAQ is down 196.24 points.
It’s somewhat surprising to see live cattle contracts higher after last week’s disappointing trade and Friday’s bearish Cattle on Feed Report. Nearby contracts are trading lower, but the rest of the marketplace is trading slightly higher. December live cattle are up $0.82 at $102.75, February live cattle are down $1.00 at $105.62 and April live cattle are down $0.35 at $108.92. Thankfully the cash cattle market hasn’t begun to test the waters yet this week and midday bids and asking prices are still elusive. New showlists appear to be about steady in Texas, and higher in Kansas and Nebraska/Colorado.
Last week’s negotiated trade totaled 93,159 head. Of that 65,109 head are for delivery in the next two weeks while the remaining 28,050 head will be for the following 15 to 30 days.
Boxed beef prices are lower: choice down $0.95 ($206.54) and select down $2.59 ($188.81) with a movement of 59 loads (23.42 loads of choice, 18.39 loads of select, 12.55 loads of trim and 4.34 loads of ground beef).
Even though the corn market is only falling a mere $0.01 to $0.02 lower, it’s a sweet, SWEET sight for the feeder cattle contracts. Following last week’s plunge lower, the market is seeing modest support thus far through Monday’s trade. November feeder cattle are up $0.27 at $129.92, January feeder cattle are up $0.70 at $126.25 and March feeders are up $0.55 at $126.07. Last week throughout the country steers and heifers sold anywhere from $4.00 to $8.00 lower as ample supplies of calves outweigh current demand and the boards uncertainty concerned buyers. Following last week’s softer prices and the moisture that accumulated late last week – this week’s run of calves could be lighter as cow/calf producers are carefully watching the market.
Stepping into the new week the lean hog market wasn’t confident how traders would approach the market but as the morning warmed up interest grew and trader support developed. December lean hogs are down $0.05 at $66.97, February lean hogs are up $0.05 at $66.97 and April lean hogs are up $0.15 at $69.87. Again, Monday’s pork cutout value scaled higher and helped bring some confidence into the marketplace.
The projected lean hog index for 10/22/2020 is down $0.06 at $78.54 and the index for 10/21/2020 is down $0.09 at $78.60. Hog prices are unable on the National Direct Day Hog Report due to packer submission problems. Pork cutouts total 125.31 loads with 104.34 loads of pork cuts and 20.98 loads of trim. Pork cutout values: up $2.99, $96.24.