Livestock Contracts Rally Support into Friday’s Afternoon
This week’s been fruitful for the cattle contracts, but come Friday even the lean hog market has seen support rally.
The live cattle contracts are facing a little pressure at midday, but both the feeder cattle and lean hog markets are trading steadily higher. Cash cattle bids are starting to pop but and draw more packer interest, but feedlots have yet to jump on those offers. December corn is down 1 1/4 cents per bushel and December soybean meal is down $2.00. The Dow Jones Industrial Average is down 242.56 points and NASDAQ is down 239.75 points.
Live cattle contracts have seen some pressure jump in and out of the nearby contracts; but as the day hits noon, the complex is trading mostly higher. December live cattle are up $0.15 at $108.12, February live cattle are up $0.10 at $110.47 and April live cattle are up $0.27 at $113.80. As the week’s cash cattle market is seeing bids surface -s the morning’s higher boxed beef prices and higher trending futures market brings a sign of relief to feedlots. Bids of $106 are still being offered in Kansas and bids of $104 live and $162 dressed are offered in Nebraska. Thus far feedlots have opted to let the bids sit, hoping packers get more aggressive as the day rolls into the afternoon.
Boxed beef prices are higher: choice up $1.00 ($208.32) and select up $3.10 ($194.33) with a movement of 69 loads (34.55 loads of choice, 14.00 loads of select, 6.76 loads of trim and 13.83 loads of ground beef).
Corn prices are rallying modestly scaling $0.01 higher in nearby contracts and upward of $0.03 higher in deferred contracts, but the feeder cattle market isn’t seeming too worried. November feeders are up $0.77 at $136.50, January feeders are up $1.32 at $132.72 and March feeders are up $1.10 at $132.07. For cow-calf producers that have yet to market their calves, the position added this week has been a relief. As the market tracks through the rest of the year, producers will have to gauge how supply and demand are weighing on the market and market their calves when buyers are hungry.
Hog prices are seeing a slight uptick in prices trailing into the day’s afternoon trade. With slight support for a modestly higher cash hog market and an uptick in the day’s midday cutout value, the market walk hand-in-hand as the markets technical sides sees support from the fundamentals. December lean hogs are up $0.62 at $66.27, February lean hogs are up $0.77 at $66.37 and April lean hogs are up $0.37 at $68.70. The markets support is good for the market’s moral, but with the market still up against long-term resistance, a lower trend is still anticipated.
The projected lean hog for 10/29/2020 is down $1.00 at $74.49, and the actual index for 10/28/2020 is down $0.80 at $75.49. Hog prices are higher on the National Direct Morning Hog Report, up $0.10 with a weighted average of $61.76, ranging from $56.00 to $63.00 on 5,882 head and a five-day rolling average of $61.62. Pork cutouts total 189.10 loads with 167.38 loads of pork cuts and 21.72 loads of trim. Pork cutout values: up $0.95, $88.52.