Largely supported by the lavish gains in the cash cattle trade, cattle contracts step higher while the lean hog market takes the back burner.
December corn is down 2 1/4 cents per bushel and December soybean meal is up $0.80. The Dow Jones Industrial Average is up 237.07 points and NASDAQ is up 54.21 points.
LIVE CATTLE
Remember the song, "The Devil Went Down to Georgia," by Charlie Daniels? Part of the song sings, "guess you didn't know it but I'm a fiddle player too, and if you'd care to take a dare, I'll make a bet with you. Now you play a pretty good fiddle boy but give the devil his due I'll bet a fiddle of gold against your soul, 'cause I think I'm better than you. The boy said, "my name's Johnny and it might be a sin, but I'll take your bet
"And you're gonna regret 'cause I'm the best there's ever been".
This week's cash cattle market feels like the fiddle playin' that went on in Charlie Daniels' song. Nebraska sold some dressed cattle live for $180.00 ($5.00 higher than last week's weighted average) for delivery in two weeks, the week of 11/18/19. Now you might shrug your shoulders and say God gave Johnny his fiddle playing skills so what's the big fuss and any time you can have a $5.00 cash rally trumpets should sing and fireworks should be lit off like it's the 4th of July ... BUT ... There are a couple of big variables floating around that could impose some pressure on the cash cattle market. First, any time cattle are sold with delayed delivery you cringe a little for the cattle that will be sold in the time in between now and then. Secondly, slaughter has been strange this week, and much lower than anticipated. Packers could make it up in a big Saturday kill, but you never know until the reports slide across your desk. Nevertheless, Friday's cash cattle trade was a win for the week, but it may cause some stress in the upcoming weeks if packers pull back their slaughter efforts and boxed beef prices decided they've rallied enough.
Midday boxed beef prices are higher: choice up $0.16 ($232.34) and select up $0.42 ($206.91) with a movement of 45 loads (16.44 loads of choice, 17.07 loads of select, 2.61 loads of trim ad 9.22 loads of ground beef).
FEEDER CATTLE
Thursday's sideways trade paid off for the feeder cattle market. Nearby and deferred contracts are all rallying well over a dollar. November feeder cattle are up $1.37 at $148.97 and January feeder cattle are up $1.65 at $146.32. Sale barn markets this past week held their ground but saw some softer sales when weather impacted the turn out. For most of the country this upcoming week should yield better weather.
LEAN HOGS
Ya can't win them all, lean hog contracts, ya can't win them all. Despite a well-attempted effort to keep the board at least steady, lean hog contracts have weakened and let the cattle contracts take the lime light. December lean hogs are down $2.07 at $63.90 and February lean hogs are down $1.20 at $72.12. It's doubtful that the second half of the day will rebound much if any at all.
The projected lean hog index for 10/31/19 is down $0.65 at $62.10, and the actual index for 10/30/19 came in down $0.39 at $62.74. Prices are higher on the National Direct Morning Hog Report, up $0.54 with a weighted average of $49.59, ranging from $45.00 to $50.47 on 4,825 head and a five-day rolling average of $50.88. Pork cutouts totaled 150 loads with 117.59 loads of pork cuts and 32.41 loads of trim. Pork cutout values are done $1.36 at $74.69.
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