DTN Midday Livestock Comments 03/30 12:01
Livestock contracts head lower as Monday seems to be unable to muster up
By ShayLe Stewart
DTN Livestock Analyst
As contracts near the noon hour the entire livestock complex trades lower
without a whole lot energy circulating throughout the market. Traders seem
leery of jumping into a marketplace without a sure consensus of where prices
are headed and find it safer to sit out until a clear direction is established.
May corn is down 5 cents per bushel and May soybean meal is up $1.40. The Dow
Jones Industrial Average is up 478.65 points and NASDAQ is up 208.09 points.
Live cattle contracts have stuck with the rest of the complex and have
traded mostly uneventfully Monday morning. Live cattle contracts flirted with
the idea of trading higher midmorning but quickly dropped back to lower levels
and continue to trade there heading into the noon hour. April live cattle are
down $1.10 at $99.85, June live cattle are down $1.15 at $88.27 and August live
cattle are down $1.22 at $89.22. Cash cattle trade has yet to develop with both
feeders and packers very quiet Monday morning. New showlists appear to be
mixed, higher in Texas, but lower in Kansas and Nebraska/Colorado.
Boxed beef cutouts are lower: choice down $1.71 ($251.13) and select down
$3.86 ($238.52) with a movement of 113 loads (68.75 loads of choice, 11.12
loads of select, 26.52 loads of trim and 6.61 loads of ground beef).
Feeder cattle contracts started the day out lower, contemplated trading
higher with the live cattle contracts but then quickly sank lower as pressure
grew. April live cattle are down $1.70 at $118.90, May feeders are down $1.42
at $119.50 and August feeders are down $1.60 at $125.50. Sale barns try to
navigate through these times like everyone else; trying to balance the worry of
will the week be lower, or will producers trudge through and market their
The lean hog market is taking the biggest hit to Monday's arrival as
contracts fall $1.10 to $3.65 lower. April lean hogs are down $3.22 at $5.20,
June lean hogs are down $4.10 at $60.20 and July lean hogs are down $3.00 at
$63.77. Given the number of hogs that sold Monday morning, it's disappointing
that the cash market was able to at least maintain steady prices if not gain a
little ground with demand being as lofty as it is.
The projected lean hog index for 3/27/2020 is down $0.93 at $65.53, and the
actual for 3/26/2020 is up $0.29 at $66.46. Hog prices are lower on the
National Direct Morning Hog Report, down $0.13 with a weighted average of
$58.71 ranging from $52.00 to $62.50 on 11.226 head sold and a five-day rolling
average of $58.41. Pork cutouts total 244.70 loads with 222.37 loads of pork
cuts and 22.33 loads of trim. Pork cutout values: down $1.46, $72.33.
ShayLe Stewart can be reached [email protected]
Copyright 2020 DTN/The Progressive Farmer. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.