Thursday Closing Livestock Market Summary - Livestock Lower, but Hopeful

GENERAL COMMENTS:

Though there hasn't been a lot of positive mumbles floating around regarding Thursday's meeting with China, Hog prices are up $1.92 on the National Direct Afternoon Hog Report, with a weighted average of $55.76. December corn is down 14 cents per bushel and December soybean meal is down $1.90. The Dow Jones Industrial Average is up 150.66 points and NASDAQ is up 47.04 points.

LIVE CATTLE:

Largely live cattle closed Thursday lower, except for spot October and the December contract (which both closed 25 cents higher). Deferred contracts lost anywhere from 2 cents to 45 cents, and the question remains if the upward trend has subsided for a while or if cash trade will pull futures higher Friday. Cash cattle trade has yet to get underway with no sign of anyone wanting to renegotiate their bids or asking prices as of now. Thursday afternoon boxed beef prices are up: choice up $1.03 ($215.63) and select up $0.54 ($186.66) with a light offering of movement totaling 105 loads (61.29 loads of choice cuts, 25.35 loads of select cuts, 6.19 loads of trim and 12.21 loads of ground beef).

FRIDAY'S CASH CATTLE CALL: $1 higher. Cash trade hasn't had a good backing this week one way or another, telling packers and feedlots to wait the storm and let things play out. Thursday's weaker board wasn't a great signal for hopeful feedlots looking for higher prices again this week. Weekly slaughter is supposed to be lighter again this week as some plants continue to clean coolers.

FEEDER CATTLE:

Feeder futures closed mixed, up 40 cents to 95 cents in deferred contracts and down 12 cents to 20 cents in nearby contracts. Thursday's inability to capture new gains could be a sign that a trend of lower prices will probably overtake the feeder cattle market. With a rush of calves all but on the trucks already, and with a toppy chart potentially forming, a lower trend could follow.

On an estimated run of 8,307 head (up 1,568 head from last week and up 3,439 head from last year), OKC West sold feeder steers and heifers Tuesday and Wednesday for steady to $4.00 higher. Demand was good to very good and the calves' quality was noted plain to average. Feeder calves over 600 pounds comprised 78% of the sale. CME feeder cattle index 10/09/19: $144.59 up $0.14.

LEAN HOGS:

Though there hasn't been a pen and paper signing, positive news floats around that China and the U.S. will be able to come to some agreement. The bi-yearly Livestock and Poultry Report came out Thursday afternoon indicating that with the African swine fever outbreak, Asian countries expect huge import increases in the next 2020 calendar year (China up 35%, Philippines up 32%, South Korea unchanged and Vietnam up 50%). This comes as a perfect opportunity for U.S. producers to be able to capture a market and send ample supplies to countries in need. Pork cutouts: up $0.90 at $76.91. CME lean hog index 10/08/19: $60.12, up $0.53.

FRIDAY'S CASH HOG CALL: $1 higher. With positive news starting to surface about President Trump and Chinese Trade Officials, higher cash prices should reflect such news.

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