GENERAL COMMENTS:
Though no plausible sources can confirm what
deals are exactly being made, rumors continue to run rapid that
conversations with China are going especially well. Hog prices are up
$0.69 on the National Direct Afternoon Hog Report, with a weighted
average of $56.27. December corn is up 17 1/2 cents per bushel and
December soybean meal is up $3.00. The Dow Jones Industrial Average is
up 307.54 points and NASDAQ is up 104.14 points. From Friday to Friday
livestock futures scored the following changes: October live cattle up
$2.10, December live cattle up $1.38, October feeder cattle up $2.13,
November feeder cattle up $2.88; October lean hogs up $0.53 and December
lean hogs up $2.35.
LIVE CATTLE:
Live cattle contracts closed higher in both
nearby and deferred contracts. Gains ranged anywhere from $0.37 to $0.85
to end the week on a higher close. Some light trade has been reported
in the North at $172, $2.00 higher than last week's weighted average in
Nebraska, though it is for a delayed delivery. Live trade is taking
place in Iowa at $109 ($2.00 higher) and bids of $108 have been placed
in the South. Others continue to wait with asking prices firm at $109 to
$110 in the South and $175 plus in the North. Friday afternoon boxed
beef prices are up: choice up $0.03 ($215.66) and select up $2.02
($188.68) with a light offering of movement totaling 110 loads (35.84
loads of choice cuts, 25.35 loads of select cuts, 20.73 loads of trim
and 28.53 loads of ground beef).
MONDAY'S CASH CATTLE CALL: $1 higher. Monday
will be especially dull given that it's a national holiday and the
countryside will most likely act on its advantageous habit of waiting to
trade cattle until later in the week. Asking prices may be established
as early as Monday, and with the week ending with higher cash prices and
stronger boxed beef prices, it's safe to think that cash prices are
going to higher again next week.
FEEDER CATTLE:
Feeder cattle markets closed lower on Friday,
ranging anywhere from $0.02 to $0.20 lower, except for November feeder
cattle closing up $0.12 at $144.25 and January 2020 feeder cattle
closing up $0.05 at $140.47. All in all, the weather wreaking havoc over
much of cow-calf country is setting into the markets as sale barns
prepare for a blistery couple of days with pens stocked full of newly
weaned calves. The Oklahoma Weekly Cattle Auction Summary reported that
compared to last week, feeder steers sold mostly steady to $4.00 higher
and feeder heifers sold steady to $3.00 higher. Demand for the calves
heavily relied on the number of days weaned and shots given. Cattlemen
that were able to wean their calves this week take a deep breath of
relief as some of them were able to dodge the snowstorm, while others in
parts of the northern country wait anxiously to see just how much snow
will stick. North Dakota currently has hundreds of miles of major
highways shut down in preparation of an anticipated 1- to 2-feet of
snow, with wind gusts up to 65 mph. These types of conditions will
surely put a damper on the feeder market. CME feeder cattle index
10/10/19: $143.63 down $1.02, and CME feeder cattle index correction for
10/09/19 is $144.65 up $0.20.
LEAN HOGS:
Pork cutout values are higher, total cutout
loads were substantially higher and the National Direct Afternoon Hog
Report reported higher prices. Something is brewing and it could be good
for the lean hog sector. Lean hog contracts closed higher to wrap up
the week, ranging anywhere from $0.02 to $1.17 higher. Cumulative
interest remains low, but until traders really know what deals have been
made and where the market is headed, it only makes sense that they
would step to the side.
Pork cutouts: up $0.61 at $77.52, with a huge
day of processing - pork cutout totaled 339.92 loads with 301.71 loads
of pork cuts and 38.21 loads of trim. CME lean hog index 10/09/19:
$60.65, up $0.53.
MONDAY'S CASH HOG CALL: $1 higher. So much
depends on when news breaks about the trade agreement with China. If
news breaks relatively soon, prices will keep excitement and then beam
when the official news breaks, but if an announcement isn't shared until
later down the road, excitement will dwindle until the new is
announced.
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