Friday jumped higher at the opening bell and rallied support in all three livestock contracts throughout the morning.
Friday jumped into the start of the day with ambition and has kept with the eagerness ever since. Luckily all three contracts are trading higher despite the weakness that developed earlier in the week in both futures and cash. July corn is up 1/2 cent per bushel and July soybean meal is down $0.20. The Dow Jones Industrial Average is up 500.00 points and NASDAQ is up 137.87 points.
Live cattle futures are fighting some nearby pressure but most of the complex is higher along with the rest of the livestock markets. June live cattle are up $0.05 at $96.87, August live cattle are down $0.30 at $96.15 and October live cattle are down $0.15 at 98.92. Nearby pressure largely stems from this week’s weaker cash cattle trade and the fact that packers haven’t been as aggressive in this week’s purchasing. So far cash cattle trade has been quiet Friday with just a handful of clean-up deals here and there and well within the week’s pre-established trading range. Asking prices for cattle left on showlists are around $110 in the South and $175-plus for cattle in the North.
Boxed beef prices are lower: choice down $5.60 ($229.96) and select down $0.23 ($219.65) with a movement of 90 loads (65.66 loads of choice, 9.66 loads of select, zero loads of trim and 14.17 loads of ground beef).
Feeder cattle contracts may have scaled lower throughout most of the week but with the support and encouragement that has swept through the livestock markets, feeder cattle contracts aren’t going to be bashful. August feeders are up $0.82 at $133.00, September feeders are up $0.92 at $134.17 and October feeders are up $0.92 at $134.92. As we neared the noon hour — even if some cash cattle trade developed for lower money — the feeder cattle futures rally seemed to be safe since the rest of the livestock contracts are feeling optimistic as well.
Lean hog futures were able to jump on the bandwagon and rally some of the support that filtrated through the cattle contracts. July lean hogs are up $0.55 at $52.67, August lean hogs are up $0.60 at $55.47 and October lean hogs are up $0.55 at $53.95. As the June lean hogs contract expires Friday afternoon, traders shift towards the July and August contracts. Pork cutouts closed $0.62 higher Thursday afternoon and the midday report shows potentially encouraging prices for Friday’s close too.
The projected lean hog index for 6/11/2020 is down $1.02 at $48.97 and the actual index for 6/10/2020 is down $1.19 at $49.99. Hog prices are not available on the National Direct Morning Hog Report due to confidentiality. Pork cutouts total 225.12 loads with 1196.61 loads of pork cuts and 28.51 loads of trim. Pork cutout values: up $2.16, $71.62.