DTN Midday Livestock Comments 02/26 12:11
Support Continues into noon hour
Support continues to keep livestock contracts trading higher into the noon
By ShayLe Stewart
DTN Livestock Analyst
On Tuesday at this time the board was trading mostly mixed and right after
the noon hour the complex crumbled and closed lower. Wednesday's board could
easily end up doing the same with the sheer amount of volatility and
uncertainty that looms throughout the market, but for the meantime both lean
hogs and feeder cattle are trading fully higher and the live cattle contracts
are mixed with cash trade beginning to emerge. March corn is down 1 cent per
bushel and May soybean meal is up $4.50. The Dow Jones Industrial Average is up
110.81 points and NASDAQ is up 59.92 points.
As the live cattle contracts reach the noon hour, nearby contracts are
mostly lower while deferred contracts are mildly higher. April live cattle are
down $0.27 at $112.67, June live cattle are down $0.25 at $105.55 and August
live cattle are up $0.05 at $105.45. Following Tuesday's light to moderate
trade throughout most of the country, a few bids are sitting on the table at
noon, but trade hasn't really developed. Bids of $184 to $187 have been renewed
by a major in Eastern Nebraska for delivery next week.
The Fed Cattle Exchange Auction reported a total of 755 head, of which 627
head sold earlier Wednesday morning. There was a total of five lots, one in
Texas and four in Kansas. Only one lot in Kansas did not sell. All started with
$115 asking prices and those that sold went for $115.25, most lots were set for
one-to-nine-day delivery, and one lot in Kansas is set for one-to-seventeen day
Boxed beef prices are lower: choice down $1.15 ($206.32) and select down
$0.88 ($199.02) with a movement of 103 loads (73.25 loads of choice, 17.15
loads of select, 5.71 loads of trim and 7.37 loads of ground beef).
Feeder cattle contracts are making a strong move into the noon hour as
nearby contracts push advancements higher and higher. March feeders are up
$1.32 at $134.30, April feeders are up $1.32 at $135.45 and May feeders re up
$0.77 at $136.60. Cash cattle trade is most likely going to develop for lower
prices again this week which could hinder the feeder cattle market's push for
higher prices throughout the later part of the week.
The projected two-day lean hog index is not available at this time. The lean
hog market isn't out of the clear from the coronavirus scare but a healthy cash
market has its way of supporting the future's market beautifully. Thankfully
cash prices were higher again Wednesday morning and the future's market has
been able to capture gains of $0.57 to $0.92 higher. April lean hogs are up
$0.57 at $65.25, June lean hogs are up $0.92 at $80.62 and July lean hogs are
$0.87 at $81.67.
Hog prices are higher on the National Direct Morning Hog Report, up $0.35
with a weighted average of $49.95, ranging from $45.00 to $51.00 on 5,051 head
sold and five-day rolling average of $50.02. Pork cutout total 191.36 loads
with 167.42 loads of pork cuts and 23.93 loads of trim. Pork cutout values:
down $1.27, $64.70.
ShayLe Stewart can be reached email@example.com
Copyright 2020 DTN/The Progressive Farmer. All rights reserved.
No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up