GENERAL COMMENTS:
Livestock markets had a successful day securing gains in the early 2020 contracts. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.23 with a weighted average of $45.21. December corn is down 3 1/2 cents per bushel and December soybean meal is up $6.70. The Dow Jones Industrial Average is up 182.24 points and NASDAQ is up 23.89 points.
LIVE CATTLE:
The board closed mostly higher, boxed beef prices are higher again and slaughter continues to vigorously process cattle. Given the current position of the live cattle market, Friday's cash trade could be impressive. If feeders are going to continue cash cattle prices, it's best to get this week wrapped up because the closer it gets to the prime holiday weeks, the less packers are going to want to work at buying cattle. December live cattle closed unchanged at $119.00, February live cattle closed $0.15 higher at $124.85 and the April board closed $0.30 higher at $125.85. Some fat cattle sold dressed in the North for $177 to $182 but mostly $181 to $188 -- which is $1.00 to $2.00 higher than last week's weighted average in Nebraska. Cash trade is yet to really get underway in the South.
Closing boxed beef prices close higher: choice up $1.15 ($238.29) and select up $1.49 ($213.02) with a total movement of 117 loads (59.52 loads of choice, 31.76 loads of select, 18.19 loads of trim and 7.57 loads of ground beef). Thursday's slaughter is estimated at 118,000 head -- steady with a week ago, and 1,000 head more than a year ago.
FRIDAY'S CASH CATTLE CALL: $2.00 higher. Given the atmosphere of the live cattle market, getting higher money shouldn't be that difficult of a task. The board closed higher in support, packers continue to make excellent money and feeders have been firm about higher asking prices.
FEEDER CATTLE:
On an estimated run of 3,000 head (up 1,187 head from the previous week), Winter Livestock in Pratt, Kansas, sold feeder steers mostly unevenly steady, and heifers weighing 700 to 850 pounds sold mostly steady to $1.00 higher. Demand was good to very good, quality was noted as average to mostly attractive.
Feeder cattle contracts had a good day for the most part -- the only contract that closed lower (and barely lower at that) was the spot November contract, down $0.02 at $146.77. January feeders closed $1.35 higher at $145.77 and March feeders closed $1.52 higher at $145.50. The CME feeder cattle contract for 11/06/19 is down $0.17 at $146.09. The 2020 contracts now lead with the most cumulative volume, and for those cattlemen that decided to hold their calves over and wait to sell them in the early 2020 market -- well, it wouldn't be surprising to see that market pay dividends.
LEAN HOGS:
Lean hog contracts didn't have too shabby of a day, especially considering the current cash hog market and all the back-and-forth worry about the trade agreement with China. December lean hogs closed $0.47 lower at $64.30, February lean hogs closed $1.00 higher and April lean hogs closed $0.77 higher at $80.15. Pork cutouts totaled 321.93 loads with 293.14 loads of pork cuts and 28.79 loads of trim. Pork cutout values: down $0.30 at $80.64. The CME lean hog index 11/05/19: down $0.20 at $60.16.
FRIDAY'S CASH HOG CALL: $1.00 lower. It wouldn't be surprising to see the cash hog market lower again Friday if the cash cattle market takes off and steals the shows -- and if packers aren't in dire need of hogs.
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