DTN Midday Livestock Comments 05/28 12:16
There Went That Idea; Livestock Contracts Trade Lower Throughout Thursday
All three livestock contracts trade lower as the support that was rallying
the market in the early part of the week has subsided.
DTN Livestock Analyst
We knew that Thursday would be an uphill battle for the livestock contracts
as sheer trading volume is thin and coming off two consecutively higher days
would leave the third day in the week with a lot of pressure to trudge through.
It's a blessing that the industry is prioritizing slaughter in both the hog and
cattle sectors, but with cutouts starting to correct, getting the industry back
to some fashion of 'normal' doesn't mean that the path getting there is
beautiful and steadily higher. July corn is up 7 1/4 cents per bushel and July
soybean meal is up $1.70. The Dow Jones Industrial Average is up 131.82 points
and NASDAQ is up 75.00 points.
Live cattle contracts are trading mostly lower following suit with the rest
of the livestock contracts. June live cattle are up $0.30 at $101.10, August
live cattle are up $0.07 at $100.80 and October live cattle are down $0.40 at
$102.45. The support in nearby contracts has only developed since midmorning
but keeping those contracts above $100 is key for the market's morale. Cash
cattle trade has been mostly quiet though some trade has developed in Nebraska.
Dressed cattle have traded for $180 to $190 (all steady with the week's trend)
though some cattle have been scheduled for delivery next week.
Boxed beef cutouts are lower: choice down $6.56 ($371.21) and select down
$2.85 ($347.35) with a movement of 99 loads (44.18 loads of choice, 13.16 loads
of select, 19.72 loads of trim and 22.35 loads of ground beef).
Feeder cattle contracts have trailed lower feeling the resistance like the
rest of the livestock complex. August feeder cattle are down $0.02 at $133.97,
September feeder cattle are down $0.22 at $134.85 and October feeder cattle are
down $0.30 at $135.62. Seeing that the market's regression is mild at this
point, feeder cattle sales throughout the countryside shouldn't be overly
affected by the day's weakness.
Lean hog contracts tumbled the furthest dropping prices back $2.00 to $3.00
and without much caution in doing so. June lean hogs are down $3.00 at $57.17,
July lean hogs are down $3.67 at $55.60 and August lean hogs are down $3.05 at
$54.55. Cash prices will most likely be lower again this afternoon seeing that
the board is lower and that slaughter continues to work through the market's
The projected lean hog index for 5/27/2020 is up $0.42 at $62.95 and the
actual index for 5/26/2020 is up $0.23 at $62.53. Hog prices are lower on the
National Direct Morning Hog Report, down $1.88 with a weighted average of
$35.94, ranging from $25.00 to $38.08 on 4,277 head sold and a five-day rolling
average of $36.08. Pork cutouts total 143.13 loads with 124.13 loads of pork
cuts and 19.00 loads of trim. Pork cutout values: up $6.30, $95.12.
ShayLe Stewart can be reached email@example.com
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