DTN Midday Livestock Comments 03/27 12:05
Closing the Week Lower
Unfortunately, Friday isn't finding the support it needed to keep prices
higher heading into afternoon.
By ShayLe Stewart
DTN Livestock Analyst
Upon the noon hour livestock contracts have kept with either earlier pace of
slowly trading lower. It's becoming apparent that as the week wraps up, traders
aren't interested in jumping into the marketplace until there is some more
vision and clarity. May corn is down 4 1/4 cents per bushel and May soybean
meal is down $1.10. The Dow Jones Industrial Average is down 737.37 points and
NASDAQ is down 241.84 points.
Live cattle prices bear lower into the noon hour as the week is seeming to
want to wrap up all aspects of business. April live cattle are down $4.15 at
$101.30, June live cattle are down $3.95 at $89.60 and August live cattle are
down $3.55 at $90.92. Disappointingly the week has ended up trading lower after
Wednesday despite the beginning of the week having significant support. Packer
inquiry is sparse heading into the midday and at this point it's safe to say
cash cattle business is essentially done as well.
Boxed beef prices are lower: choice down $1.46 ($252.11) and select is down
$0.56 ($241.61) with a movement of 99 loads (56.50 loads of choice, 8.22 loads
of select, 15.37 loads of trim and 19.37 loads of ground beef).
Feeder cattle contracts dip to limit losses in a slew of nearby contracts
and deferred contracts are only roughly 20 cents behind. As the week nears its
end traders are checked out for the week and aren't looking to invest while the
market is still engulfed in uncertainty. April feeders are down $4.50 at
$120.60, May feeders are down $4.50 at $120.92 and August feeders are down
$4.50 at $127.10. On the bright side, the country has been blessed with
phenomenal weather which is making springtime sales easier than many had
planned for, and cattle are converting like crazy with sunny days and cooler
Lean hog contracts follow suit and head substantially lower. Nearby
contracts are suffering more than deferred contracts but the entire complex is
trading steadily $2.00 to $4.50 lower. April lean hogs are down $3.80 at
$59.10, June lean hogs are down $4.50 at $64.25 and July lean hogs are down
$4.00 at $66.62.
The projected lean hog index for 3/26/2020 is up $0.26 at $66.46, and the
actual index for 3/25/2020 is up $1.05 at $66.17. Morning hog prices are
delayed due to packer submission problems. Pork cutouts total 170.60 loads with
149.03 loads of pork cuts and 21.57 loads of trim. Pork cutout values: down
ShayLe Stewart can be reached firstname.lastname@example.org
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