GENERAL COMMENTS:
The market was mostly determined to trade lower.
With slim demand for feeders, little market support and lean hogs
taking a day of rest, it makes sense why a day of mostly sideways trade
was determined. Hog prices are higher on the National Direct Afternoon
Hog Report, up $0.78 with a weighted average of $46.46. March corn is
down 1 3/4 cents per bushel and January soybean meal is up $4.80. The
Dow Jones Industrial Average is up 28.01 points and NASDAQ is up 4.03
points.
LIVE CATTLE:
Time is ticking, packers are biddin, and the
race is on. Keeping prices still well below this week's asking prices,
packers may have to penny up in order to fill the pens they need.
Realizing that having the plant back up and running in Holcomb is adding
a little more competition to the market place. Light to moderate trade
developed in the South at $119, $1.00 higher than last week's weighted
average. Cattle will need to trade Friday to keep packers fully stocked.
The live cattle market was the only complex able to close the day
higher. December live cattle closed $0.47 higher at $119.92, February
live cattle closed $0.42 higher at $124.60 and April live cattle closed
$0.15 higher at $125.15.
Closing boxed beef prices are lower: choice down
$1.35 ($225.60) and select down $2.19 ($208.12) with a total movement
of 163 loads (85.60 loads of choice, 14.26 loads of select, 38.42 loads
of trim and 24.67 loads of ground beef). Thursday's slaughter is
estimated at 120,000 head, 2,000 head less than a year ago. Wednesday's
cattle slaughter was revised to 117,000 head, not the initially posted
121,000 head.
FRIDAY'S CASH CATTLE CALL: $1.00 to $2.00
higher. Given that lots of cattle still need to trade to keep packers
fully loaded and able to meet demand, the ball is in feeders' court so
long as the board doesn't completely trade lower; it if it, does steady
prices with last week is still safe to bet.
FEEDER CATTLE:
Feeder cattle markets were teetering midday on
whether the tone was going to be higher or lower, and after the noon
hour, lower tones took over the complex. January feeders closed $0.32
lower at $140.55, March feeders closed $0.27 lower at $141.15 and April
feeders closed $0.27 lower at $143.12.
On an estimated run of 3,518 head compared to
two weeks ago, steers at Hub City Livestock Auction in Aberdeen, South
Dakota, sold steer calves 500 to 550 pounds $3.00 to $4.00 lower, 601-
to 700-pound steers steady to $2.00 higher. Heifer calves 450 to 550
pounds mostly steady, 601 to 650 pounds mostly steady. Some yearlings
were packing tags (mud tags on their hides) but most had clean hides.
There was less flesh on the calves than two weeks ago and mostly
moderate flesh overall on the calves. There was also a moderate to
active market with order buyers and a couple farmer feeders in the
seats. The area received a large amount of snow and blizzard conditions
over the weekend, further complicating life for producers. There is
still quite a bit of corn in the fields and the ground has yet to freeze
hard. These conditions have further dampened interest in buying calves
to feed. The CME feeder cattle index 12/4/19: $144.53, $0.66.
LEAN HOGS:
The board traded lower, but cash prices were
still able to strike gains again through Thursday afternoon. December
lean hogs are down $0.30 at $61.57, February lean hogs are down $0.85 at
$67.57 and April lean hogs are down $1.25 at $73.50. Pork cutouts
totaled 292.24 loads with 261.14 loads of pork cuts and 31.10 loads of
trim. Pork cutout values: up $0.36 at $81.36. Thursday's hog slaughter
is estimated at 496,000 head, 22,000 head more than a year ago. The CME
lean hog index 12/3/19: $58.20, up $0.82.
FRIDAY'S CASH HOG CALL: Steady. Given that the
board has retracked ever so slight, it may be safest to bet that cash
hog prices are going to be merely steady. However, they still have all
the potential to rally some with cutout values etching higher.
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