DTN Midday Livestock Comments 04/07 12:08
Tuesday Looks to Higher Prices in Livestock Contracts
Livestock contracts head into Tuesday's noon hour trading fully higher in
all three contracts.
By ShayLe Stewart
DTN Livestock Analyst
It's looking like 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
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
within contracts 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 boughten in the last few trading days was been pretty slim which is most
likely stemming from the uncertainty with how packing plants are going to
handle 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.
ShayLe Stewart can be reached email@example.com
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