DTN Midday Livestock Comments 02/18 12:11
Keeping the Ball Rolling
Livestock contracts open the week with a strong push to keep the market
By ShayLe Stewart
DTN Livestock Analyst
Maybe the secret this week was having Monday off? Regardless of what the
trick was, livestock contracts have been able to keep the market trading higher
and cash markets are expected to perform well this week too.
March corn is up 3 1/2 cents per bushel and March soybean meal is up $1.40.
The Dow Jones Industrial Average is down 246.27 points and NASDAQ is down 41.31
Live cattle contracts keep Friday's positive close in mind as most of the
complex moves higher as the noon hour approaches. February live cattle are up
$0.45 at $121.27, April live cattle are up $0.15 at $120.47 and June live
cattle are up $0.20 at $112.10. It's seeming that the week may be back to a
more usual trade pattern with live cattle trading in the later part of the
week. The countryside is quiet at midday with not yet fully established though
there are a few scattered asking prices in Texas at $122. Seeing that cutout
values are expected to rise from here on out and that packers are short bought
on cattle, it wouldn't be surprising to see the market's positivity trickle
into the cash market later this week as well.
Boxed beef prices are lower: choice down $0.86 ($206.40) and select down
$1.60 ($204.58) with a movement of 72 loads (37.11 loads of choice, 11.14 loads
of select, 6.56 loads of trim and 16.89 loads of ground beef).
Feeder cattle prices saw a slight increase throughout sales barns last week
as availability for certain weight groups is becoming harder and harder to come
by. Weather will be a big factor moving forward on how sale barn prices perform
because whenever cattle are dirty from wet conditions, prices see a small dip
and obviously the ease of getting cattle to the ring depends on road
conditions. The feeder cattle futures market is still pressing forward for
gains as the noon hour approaches. March feeders are up $0.65 at $139.17, April
feeders are up $0.37 at $141.75 and May feeders are up $0.35 at $143.55.
It's been a powerful Tuesday morning for the lean hog market as advancements
are seen across the board, rallying support from both traders and packers.
April lean hogs are up $1.25 at $65.52, May lean hogs are up $0.70 at $73.70
and June lean hogs are up $0.22 at $81.12. Last week packers pushed
aggressively to process hogs but are expected to start backing off on their
rigorous kill schedules and producers will have to be cautious of hog weights
when moving forward.
The projected lean hog index for 2/17/2020 is down $0.31 at $55.66, and the
actual index for 2/14/2020 is down $0.41 at $55.97. Hog prices are higher on
the National Direct Morning Hog Report, up $2.46 with a weighted average of
$50.46, ranging from $45.00 to $53.00 on 5,063 head sold and five-day rolling
average of $49.51. Pork cutout total 214.34 loads with 191.38 loads of pork
cuts and 22.97 loads of trim. Pork cutout values: up $2.13, $64.99.
ShayLe Stewart can be reached firstname.lastname@example.org
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