GENERAL COMMENTS:
Monday came and welcomed the week as most would have expected -- lean hog contracts being lower and live cattle contracts being timid, but the surprise keeps coming from the feeder cattle contracts. Though feeder cattle contracts couldn't keep all of the day's rally, feeder cattle contracts were by far the most ambitious for the day. Prices are lower on the National Direct Afternoon Hog Report, down $0.10 with a weighted average of $42.15. December corn is down 3 1/2 cents per bushel and December soybean meal is down $5.90. The Dow Jones Industrial Average is up 31.33 points and NASDAQ is up 9.11 points.
LIVE CATTLE:
Whether you look at the live cattle market and think that the market is consolidating to build steam for later or is rather trading steady because the near two-month rally has exhausted the market, Monday's market closed steady, and steady sideways trade is probably the board's game here for the next couple of days. December live cattle closed $0.40 at $118.70, February live cattle closed $0.12 higher at $125.10 and April live cattle closed $0.32 higher at $126.40. Cash cattle trade hasn't sparked any interest yet.
Formula totals for last week were higher in Texas and somewhat higher in Kansas and Nebraska: Kansas 77,746(up 477), Nebraska 62,039(up 691), Texas 90,449 (up 2,228). Total trade volumes for last week were mixed, higher in Texas, but lower in Kansas and Nebraska: Kansas 88,687(down 7,251), Nebraska 90,898(down 12,589), Texas 97,456(up 3,181). New showlists appear to be lower in all areas.
Closing boxed beef prices are mixed: choice down $1.68 ($239.12) and select up $1.26 ($215.59) with a movement of 103 loads (67.51 loads of choice, 25.32 loads of select, no loads of trim and 9.70 loads of ground beef). Monday's slaughter is estimated at 118,000 head -- up 6,000 head from the previous week and 2,000 head less than a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. If there were to be any fat cattle bid Tuesday, they would most likely be for steady money. Later in the week it wouldn't be crazy to think that cash cattle could see a mere $1.00 bump. It will come down to how badly feeders want to clean their fat pens and have less to feed over the holidays.
FEEDER CATTLE:
Feeder cattle markets have been the ping-pong ball, trading higher and lower the last couple of days. Monday's market pumped optimism into the live cattle contracts and closed higher in both nearby and deferred markets. November feeder cattle closed $0.12 higher at $146.37, January feeder cattle closed $0.20 higher at $144.47 and March feeders closed $0.50 higher at $144.72.
On an estimated run of 3,003 head, Lexington Livestock Market in Lexington, Nebraska, sold feeders on Friday compared to the previous week steers weighing 450 to 600 pounds sold for $5.00 lower, steers weighing 600 to 700 pounds lower sold $3.00 higher. Heifers weighing 500 to 600 pounds sold steady to $2.00 higher. Demand was good from the crowd. The CME feeder cattle index 11/15/19: down $0.63 at $146.69.
LEAN HOGS:
Monday treated lean hog contracts as usual -- kicked twice, spit on once and thrown in the garbage, especially when looking at the deferred contracts. December lean hogs fair the day with mild losses, down $0.45 at $62.75, February lean hogs down $1.77 at $70.22 and April lean hogs down $2.62 at $76.35. The current lean hog prices of $62.75 now falls well below both the 40-day moving average of $64.57 and the 100-day moving average of $68.65. Pork cutouts totaled 229.32 loads with 205.01 loads of pork cuts and 24.31 loads of trim. Pork cutout values: up $1.01 at $89.14. The CME lean hog index 11/14/19: up $0.01 at $59.51.
TUESDAY'S CASH HOG CALL: Steady. If this week acts as usual, Tuesday's board will be more fruitful to the lean hog sector and takes its merrily time dwindling the cattle contracts. If there was an opportunity in the week to bat for steady prices, Tuesday may be it.
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