DTN Midday Livestock Comments 05/26 12:26
Refreshed and Ready for the New Week
It would appear that the three-day weekend served the livestock industry
well as all contracts are trading higher and energy is apparent within the
DTN Livestock Analyst
The marketplace is thriving midmorning Tuesday as all three livestock
contracts continue to trade higher and even though it's early in the week, a
light run of cash cattle have traded for $190 in parts of Nebraska. Significant
trade will most likely hold off until later in the week but seeing prices come
out strong this early is another good sign for the market this week. July corn
is up 1 1/2 cents per bushel and July soybean meal is up $0.10. The Dow Jones
Industrial Average is up 567.42 points and NASDAQ is up 75.36 points.
Live cattle contracts may not be rallying the solid $3.00 or higher like the
feeder cattle complex is, but the substantial $1.70 to $2.00 gains seen
throughout the complex is warmly welcomed. June live cattle are up $1.72 at
$99.40, August live cattle are up $1.82 at $99.15 and October live cattle are
up $1.82 at $101.22. Seeing that both the June and August contracts are within
a $1.00 of the $100.00 threshold, leaves the market with a decision to make. Is
there enough support and enough traders around willing to buy into the
marketplace to push past the $100 benchmark? Or will the market trade higher,
but without coming in full contact with the resistance? Solid support builds
within the market as cash cattle have already traded steady this week. Some
light trade is developing in parts of Nebraska at $190, which is fully steady
with the top end of last week's business. Showlists this week appear to be
higher in all feeding regions and especially in Texas.
Boxed beef prices are lower: choice down $10.73 ($386.01) and select down
$9.62 ($364.56) with a movement of 149 loads (97.46 loads of choice, 14.69
loads of select, 3.29 loads of trim and 33.91 loads of ground beef).
Feeder cattle contracts head into Tuesday ready to capture all of what the
day has to offer and push contracts into mostly triple-digit gains. August
feeders are up $4.30 at $133.07, September feeders are up $3.87 at $134.02 and
October feeders are up $3.65 at $134.90. Last week, the market danced mostly
lower as there was pressure on both live cattle and feeder cattle contracts.
Seeing that fat cattle are testing the market this week already fully steady
with last week's prices, if the board can rally on the live cattle side of
things, the feeder cattle contracts are appearing to be growing in strength.
This comes as a pleasant surprise as cattle producers look forward to seeing
what the first large runs of videos sale do in the next couple of weeks for
The lean hog complex wasn't completely sure about the day's ambition to
rally higher but has since warmed up to the idea and is trading right along
with cattle contracts. June lean hogs are up $2.17 at $60.95, July lean hogs
are up $3.42 at $59.32 and August lean hogs are up $2.60 at $56.87. Morning
pork cutout values skyrocketed pushing upwards of $10 higher, so heading into
the afternoon it will be interesting to see where those prices close and see
how demand changes over the next little while.
The projected lean hog index for 5/22/2020 is down $1.15 at $62.30, and the
actual index for 5/21/2020 is down $1.15 at $63.45. Hog prices are lower on the
National Direct Morning Hog Report, down $2.61 with a weighted average of
$36.20, ranging $32.00 to $39.00 on 4,805 head sold. Pork cutouts total 193.86
loads with 178.61 loads of pork cuts and 15.25 loads of trim. Pork cutout
values: up $10.06, $106.81.
ShayLe Stewart can be reached firstname.lastname@example.org
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