Friday, October 25, 2019

Friday Closing Livestock Market Summary - Livestock Market Closed Mostly Higher

GENERAL COMMENTS:
Friday's livestock markets closed mostly higher. Cattle contracts secured gains across all markets while the hog complex closed mixed. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.68, with a weighted average of $53.10. December corn is steady and December soybean meal is steady. The Dow Jones Industrial Average is up 152.53 points and NASDAQ is up 57.31 points.

From Friday to Friday, livestock futures scored the following changes:
October live cattle up $1.50 and December live cattle up $2.45; October feeder cattle up $2.20 and November feeder cattle up $2.53; Dec lean hogs are down $3.03 and February lean hogs are down $4.12

LIVE CATTLE:
Live cattle contracts ended the week on a successful note. Nearby contracts closed over $1.00 higher and deferred contracts, though not as high, still closed green. December live cattle closed up $1.35 at $116.07 and February live cattle closed up $1.02 at $121.07. Cash cattle trade hasn't sparked much after the Cattle on Feed Report came out. Cattle and calves on feed figures were down 1%, placements up 2% and marketings up 1%. Overall, the report should have little market impact with actual figures well within analysts' projections. The report is considered to be neutral in its findings. Friday afternoon some live trade has taken place in west Nebraska for $111.00, $1.00 higher. More trade is expected to develop as the day presses on.

Closing boxed beef prices are mixed: choice down $0.18 ($225.44) and select up $0.75 ($199.84) with a movement of 83 loads (46.35 loads of choice, 12.91 loads of select, 11.93 loads of trim and 11.91 loads of ground beef).

MONDAY'S CASH CATTLE CALL: Steady. Monday's market should be in good shape for another strong week, but given the fact that it's Monday, it's very unlikely that any fat cattle will trade that early in the week.

FEEDER CATTLE:
On an estimated run of 5,395 head (down 1,245 head from the previous week) Billings Livestock Commission in Billings, Montana, sold steer and heifer unevenly steady. Quality was considered average to attractive and varied more compared to last week. Calves with fall preconditioning shots sold with good demand. Preconditioned calves sold with a solid $8.00 to $12.00 premium to calves with no shots or only spring shots. Several buyers showed no interest at all for calves that were not preconditioned this fall. Overall, demand was mostly moderate to good on heavy offerings. Friday's feeder cattle market closed higher with gains ranging mostly from $0.75 to $1.20. November feeder cattle closed up $1.20 at $145.37 and January feeder cattle closed up $1.02 at $141.60. CME feeder cattle index 10/24/19: $144.73, down $0.23.

LEAN HOGS:
Though the lean hog market closed mixed while other markets closed fully higher, it was a good Friday close for the lean hog sector. Stimulated by rumor that the phase one trade deal could be coming to a finalized deal, the lean hog market saw flurries of support. December lean hogs are up $0.37 at $64.92 and February lean hog are down $0.12 at $73.35. Pork cutouts totaled 311.25 loads with 286.68 loads of pork cuts and 24.57 loads of trim. Pork cutout values: up $2.03 at $76.56. CME lean hog index for 10/23/19: $65.49, down $0.23.


MONDAY'S CASH HOG CALL: $1.00 lower. Even though Friday closed higher, Monday markets have a way of humbling anxious souls. 

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