GENERAL COMMENTS:
It's beginning to look a lot like ... no not Christmas, but like the 2020 calendar year needs to hurry up and make its arrival, because lean hog contracts wait in utter suspense. Hog prices are higher on the National Direct Afternoon Hog Report, up $0.06 with a weighted average of $42.39. December corn is down 3 1/4 cents per bushel and December soybean meal is down $2.20. The Dow Jones Industrial Average is down 112.93 points and NASDAQ is down 43.93 points.
LIVE CATTLE:
Live cattle markets were able to hold mixed markets despite feeder cattle markets closing mostly lower. December live cattle are up $0.52 at $119.30, February live cattle are up $0.42 at $125.47 and April live cattle are up $0.07 at $126.25. Cash trade started to trickle in for higher money -- live cattle sold in the South for $116 to $116.50 ($1.00 higher than last week's weighted average) and light dressed trade developed in Nebraska and Iowa at $184 ($2.00 higher than last week).
Closing boxed beef prices are lower: choice down $0.80 ($238.21) and select down $0.70 ($214.77) with a total boxed beef movement of 123 loads (62.09 loads of choice, 18.36 loads of select, 19.01 loads of trim and 23.77 loads of ground beef). Wednesday's slaughter is estimated at 117,00 head, down 1,000 head from the previous week and down 4,000 head from a year ago.
THURSDAY'S CASH CATTLE CALL: Steady with this week's prices, $1.00 to $2.00 higher than last week's prices. Given that some cattle have already began to trade, the board is sideways, Friday's Cattle on Feed Report is lofty in its placement figures, rallying much higher would be a stretch.
FEEDER CATTLE:
Feeder cattle contracts started the day with spunk but couldn't keep of the steam through closing. November feeder cattle closed steady at $146.60, January feeder cattle closed $0.05 higher at $144.07 and March feeders closed $0.32 lower at $144.15. Trailing sideways will likely continue to be the cards played for both the live cattle market and feeder cattle market for quite some time.
On an estimated run of 3,161 head (down 317 head from the previous week), Miles City Livestock Commission in Miles City, Montana, found calves sold on moderate demand for heavy offerings. Steer calves weighing less than 450 pounds sold mostly $3.00 to $6.00 lower, 450 to 650 pound steers sold unevenly steady from $3.00 lower to 1.00 higher, all other weights of steer calves were too lightly tested to trend. However, steady undertones were noticed. Heifer calves weighing less than 600 pounds sold unevenly steady from $5.00 lower to $4.00 higher. Quality this week was mostly average with a limited offering of attractive calves. Buyers showed good demand for healthy appearing weaned calves that were given two rounds of shots and weaned over 45 days. Buyers offered these type offerings strong premiums ranging from $8.00 to $10.00 cwt. Calves with two rounds of vaccinations continue to sell at a premium to calves with only one round. The CME feeder cattle index 11/19/19: down $0.08 at $146.62.
LEAN HOGS:
The currently market situation is by no means ideal for pork producers and Wednesday's close was even lower than expected. December lean hogs closed $1.70 lower at $60.45, February lean hogs closed $2.85 lower at $66.77 and April lean hogs closed $2.82 lower at $72.92. Constant worry over the phase one trade agreement hasn't helped the market one bit, and new realizations that the entire agreement may not be reached until sometime after the New Year weakens the market even more. Pork cutouts totaled 284.73 loads with 225.43 loads of pork cuts and 59.30 loads of trim. Pork cutout values: up $1.91 at $86.58. The CME lean hog index for 11/18/19: up $0.05 at $59.29.
THURSDAY'S CASH HOG CALL: $1.00 lower. The livestock complex bleeds lower and with plentiful supply unable to go anywhere, lower is the game for lean hog contracts for now.
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