It was a good week for the cattle contracts as the fat cattle market added $3.00 to $7.00 and feeder cattle prices grew anywhere from $4.00 to $12.00 stronger across the countryside. The marketplace wasn't as fruitful for the hog industry, but as the market trails away from recent highs, pressure to trade somewhat lower is anticipated. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.33 with a weighted average of $59.59 on 5,632 head. December corn is up 2 1/4 cents per bushel and December soybean meal is down $0.00. The Dow Jones Industrial Average is up 390.66 points and NASDAQ is up 114.38 points.
From Friday to Friday livestock futures scored the following changes: December live cattle up $1.27, February live cattle up $0.08; November feeder cattle down $0.22, January feeder cattle up $1.95; December lean hogs unchanged, February lean hogs down $2.45.
LIVE CATTLE:
The live cattle market closed notably lower like the rest of the livestock markets. Even with the market's sharp advancements in the cash market and this week's gains in boxed beef prices, the market was still pushed lower come Friday's close. December live cattle closed $2.05 lower at $109.92, February live cattle closed $2.57 lower at $112.22 and April live cattle closed $2.15 lower at $116.20. The cash market didn't add any extra money from Thursday, but some more cattle did end up trading in the South for $110, $3.00 higher than a week ago. The Northern Plains saw a little clean-up trade take place at $172, which is $7.00 higher than last week's averages. Friday's slaughter is estimated at 118,000 head, 9,000 head more than a week ago and 1,000 head less than a year ago. Saturday's kill is projected to be around 63,000 head. This week's total cattle slaughter is estimated at 653,000 head; 0.9% more than a week ago and 1.5% less than a year ago.
Friday's export report shared that beef net sales of 14,300 mt reported for 2020 were down 30% from the previous week and 23% from the prior four-week average. Increases primarily for China (3,500 mt), Japan (3,100 mt, including decreases of 300 mt) and Canada (1,900 mt).
This week's boxed beef advancement was significant as on average choice cuts jumped $11.96 ($222.99) and select cuts jumped $10.90 ($207.42) and this week's total loads of cuts, grinds and trim equaled 667 loads.
Boxed beef prices closed mixed: choice down $0.52 ($225.98) and select up $1.22 ($209.46) with a movement of 171 loads (123.27 loads of choice, 11.21 loads of select, 26.68 loads of trim and 9.47 loads of ground beef).
MONDAY'S CASH CATTLE CALL: Higher. Feedlots know that it pained packers to pay more money this last week, but the fact remains that feedlots sit in a good position to continue to push packers into paying more.
FEEDER CATTLE:
Friday's massive sell-out on the cattle front didn't forget about the feeder cattle contracts and took plenty of margin out of marketplace before heading into the weekend. November feeders closed $2.60 lower at $137.47, January feeders closed $2.85 lower at $137.87 and March feeders closed $2.55 lower at $137.15. Even though the board traded weaker through Friday's trade and ended up giving back all of what Monday fought for, the rally that happened this week throughout the countryside cannot be forgotten as producers are in better position than they were before. Nebraska's Weekly Livestock Auction Summary shared that compared to a week ago steer calves sold $2.00 to $3.00 higher and heifer calves sold $2.00 to $6.00 higher, which yearling steers and heifers steady to $4.00 stronger. It most certainly helped to have farmer feeders at the auctions as their crops are harvested and they are helping carry the sale. Most buyers continue to seek calves with fall pre-condition shots as health is usually better after all the stress they occur leaving momma's side and getting to their new home. The CME feeder cattle index for Nov. 12: up $0.65, $137.35.
LEAN HOGS:
Friday's weakness absorbed the lean hog market as the complex closed $1.00 to $2.00 lower. With cutout values unable to find significant domestic support, and with exports being disappointing, Friday's continued lack of trade investment wasn't surprising. December lean hogs closed $0.90 lower at $64.90, February lean hogs closed $2.15 lower at $64.57 and April lean hogs closed $2.32 lower at $68.02. Pork cutouts totaled 354.83 loads with 314.72 loads of pork cuts and 40.11 loads of trim. Pork cutout values: down $2.94, $80.14. Friday's slaughter is estimated at 477,000 head, 11,000 head less than a week ago and 8,000 head less than year ago. This week's total hog slaughter is estimated at 2,688,000 head; down 0.9% from a week ago and down 2.6% from a year ago. The CME lean hog index for Nov. 11: down $0.05, $71.32.
Pork net sales of 42,500 mt reported for 2020 were up 1% from the previous week and 36% from the prior four-week average. Increases were primarily for China (21,100 mt, including decreases of 800 mt), Mexico (9,900 mt, including decreases of 800 mt) and Japan (6,600 mt, including decreases of 100 mt).
MONDAY'S CASH HOG CALL: Lower. With the futures scaling away from recent resistant levels, and cutout values neglecting to attract consumers, the market will most likely trade lower.
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