DTN Midday Livestock Comments 04/06 12:13
Moving Higher Monday Morning
Monday is successfully rolling into the noon hour fully higher in all three
By Rick Kment
As Monday hits the noon hour all three livestock markets trade higher.
Monday seems to come a little easier when the news shares positive headlines
but as everyone watches the board, the big question is whether or not the
support will solidify or if everything will be weaker come Tuesday? May corn is
down 2 cents per bushel and May soybean meal is down $4.90. The Dow Jones
Industrial Average is up 1,198.70 points and NASDAQ is up 406.81 points.
Higher prices Monday morning is seeming to break up the monotony of
lower-here, lower-there attitudes. But as we look and carefully watch the price
movements, the biggest question is if the support building is substantial, or
if it will disappear and make room for a lower market come Tuesday? Knowing
that cash cattle prices are assumed to be lower this week with packers
struggling to have shift-workers show up, it makes processing cattle difficult
with minimal help, and could lead to a weaker board later in the week. April
live cattle are down $3.00 at $85.00, June live cattle are up $1.70 at $82.62
and August live cattle are up $1.92 at $86.32. Cash cattle trade is quiet
Monday morning with asking prices and bids not yet established. New showlists
appear to be mixed, higher in Texas, about steady in Nebraska/Colorado, and
lower in Kansas.
Boxed beef cutouts are lower: choice down $0.70 ($229.74) and select down
$3.05 ($212.79) with a movement of 103 loads (66.13 loads of choice, 21.32
loads of select, 10.05 loads of trim and 5.09 loads of ground beef).
Feeder cattle contracts push higher and higher heading into the noon hour as
the entire complex trades $1.82 to $2.50 higher. April feeders are up $1.82 at
$110.07, May feeders are up $2.07 at $110.17 and August feeders are up $2.25 at
$116.67. The feeder cattle market especially needs to see the board strengthen
as feeders' hands are tied, unable to buy calves if they can't find a safe spot
to hedge their new purchases at. With the run of early summer sales right
around the corner, cow-calf producers and feeders are eyeing the board praying
that the positively sticks.
Lean hog contracts started the day out leery but have since shifted gears
and are trading $2.00 to $4.50 higher. Nearby contracts are seeing the most
resistance while deferred contracts are the strongest. April lean hogs are up
$2.12 at $42.47, June lean hogs are up $2.30 at $50.67 and July lean hogs are
up $3.05 at $55.72.
The projected lean hog index for 4/3/2020 is down $3.00 at $57.65 and the
actual index for 4/2/2020 is up $2.43 at $60.65. Hog prices are higher on the
National Direct Morning Hog Report, up $0.31 with a weighted average of $43.15,
ranging from $42.00 to $43.50 on 2,567 head and five-day rolling average of
$47.52. Pork cutouts totaled 248.08 loads with 231.71 loads of pork cuts and
16.37 loads of trim. Pork cutout values: up $2.01, $59.38.
ShayLe Stewart can be reached firstname.lastname@example.org
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