GENERAL COMMENTS:
Mondays aren't so bad when all three livestock contracts can close mostly higher. Hog prices are down on the National Direct Afternoon Hog Report, down $0.19 with a weighted average of $42.72. December corn is down 4 cents per bushel and December soybean meal is down $4.30. The Dow Jones Industrial Average is up 10.25 points and NASDAQ is down 11.03 points.
LIVE CATTLE:
Live cattle contracts secured a win early in the week with a tight knit rally, trading mostly $0.45 to $0.85 higher. December live cattle trading $0.62 higher at $119.87, February live cattle trading up $0.65 at $125.67 and April live cattle traded $0.85 higher at $126.95. All in all, the holiday treated the live cattle market very well considering that boxed beef prices are still trading mixed and the feeder cattle market was able to rally in support. Cash cattle trade has yet to develop this week and it will most likely be sometime late Wednesday or Thursday before trade surfaces.
Closing boxed beef prices are mixed: choice down $0.53 ($238.59) and select is up $0.43 ($213.69) with a light movement of 72 loads (36.25 loads of choice, 18.89 loads of select, 7.95 loads of trim and 9.35 loads of ground beef). Monday's slaughter is estimated at 112,000 head, down 3,000 head from the previous week and up 1,000 head from a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. Tuesday's aren't typically a big day for cash cattle trade, but it is the market's weak point regarding board volatility. If there is a day of the week that seems to just want to trade lower, it's Tuesday. Given that Monday had a nice little rally, it will be interesting to watching what Tuesday decided to do with it. Will it have a change of heart and trade higher? Be somewhat gracious and trade steady? Or be its typical self and give all of Monday back?
FEEDER CATTLE:
Feeder cattle markets rallied significantly for a Monday. November feeder cattle are up $0.57 at $147.57, January feeder cattle are up $1.25 at $147.12 and March feeders are up $1.20 at $146.70. Given that upper level supplies are taking care of themselves, feeder cattle markets can surge higher and look optimistically to the upcoming new year. Last week ended softer, trading lower for three consecutive days until Friday appeared and closed slightly higher. Watching closely to what happens with the live cattle market, the feeder cattle market closed the day stronger.
On an estimated run of 3,040 head (up 536 head from the previous week) feeders last Friday at Lexington Livestock Market in Lexington, Nebraska weighing 450 to 600 pounds sold steady to $4.00 higher. Demand was noted as good and quality was average. The CME feeder cattle index 11/08/19: up $.68 at $146.52.
LEAN HOGS:
Cattle contracts struggle on Tuesdays and it seems like the lean hog contracts have been struggling on Mondays as of late, but this Monday afternoon lean hog contracts were able to muster up support and close mostly higher. Nearby contracts struggled to find the support the deferred contracts did but overall the market's undertone is stronger. December lean hogs are down $0.82 at $63.30, February lean hogs are down $0.17 at $73.72 and April lean hogs are up $0.32 at $80.65. Pork cutouts totaled 278.50 loads with 255.59 loads of pork cuts and 22.91 loads of trim. Pork cutout values: up $3.67 at $86.34. The CME lean hog index 11/07/19: up $0.10 at $69.29.
TUESDAY'S CASH HOG CALL: Steady. You'd like to think that, because of the holidays being right around the corner, cash hog prices might rally a bit, but given the fact that coolers are stacked deep with already processed hogs, and that ready-to-kill hogs are a dime a dozen, its unlikely to see cash hog prices rally.
 |
| #completecalfcare |
No comments:
Post a Comment