Cattle contracts kept with the rally into Friday's closing bell and successfully regained lost ground over the week. The lean hog market traded in a sideways pattern as resistance levels push the market lower from the industry's recent high. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.95 with a weighted average of $60.18 on 4,214 head. December corn is down 2 1/2 cents per bushel and December soybean meal is down $5.40. The Dow Jones Industrial Average is down 66.78 points and NASDAQ is up 4.30 points.
From Friday to Friday, livestock futures scored the following changes: December live cattle up $2.68, February live cattle up $1.75; November feeder cattle up $0.30, January feeder cattle up $1.80; December lean hogs down $0.67, February lean hogs up $1.48.
LIVE CATTLE:
Friday's live cattle market rounded out the week on a strong note as the futures market successfully closed higher yet again. This week's cash cattle trade was a big win for northern feedlots that were able to rally the market $3.00 to $4.00 and clean up a healthy movement of cattle. Southern feedlots had a strong week as well, but given that the North was selling discounted to the South, their advancements were a little stronger this week. December live cattle closed $0.30 higher at $108.65, February live cattle closed $0.70 higher at $112.15 and April live cattle closed $0.75 higher at $116.05. Friday's cash cattle trade was relatively uneventful as the day posted some clean-up trade but nothing new or noteworthy in regard to prices. Friday's slaughter is estimated at 109,000 head, 5,000 head less than a week ago and 9,000 head less than a year ago. Saturday's kill is projected to be around 59,000 head.
For the week choice cuts averaged $211.03 (up $3.88 from a week ago) and select cuts averaged $196.51 (up $6.67 from a week ago) and the week's total movement of cuts, grinds and trim totaled 727 loads.
Boxed beef prices closed mixed: choice up $1.88 and select down $0.48 ($198.49) with a movement of 115 loads (59.96 loads of choice, 21.29 loads of select, 23.03 loads of trim and 10.85 loads of ground beef).
MONDAY'S CASH CATTLE CALL: Higher. This year has been hell, but maybe November can be better for cattlemen? With boxed beef prices scaling higher and the cash cattle market bound to regain some leverage, next week's trade is already anticipated to be stronger.
FEEDER CATTLE:
The feeder cattle market closed mixed with nearby contracts rallying modestly into the day's close and deferred contracts facing resistance before the day's end. November feeder cattle closed $0.12 higher at $137.70, January feeder cattle closed $0.52 higher at $135.92 and March feeders closed $0.42 higher at $135.17. As Friday etched into the afternoon's trade, the support from the rallying live cattle futures and regression in the corn complex helped boost the feeder cattle market's confidence and allow for most of the contracts to trade higher into the weekend. Montana's Weekly Livestock Auction summary shared that, compared to a week ago, unweaned steer calves under 400 pounds sold $10.00 to $15.00 lower, steers weighing 400 to 599 pounds sold mostly steady to $5.00 higher and steers weighing 600 to 699 pounds sold steady to $5.00 lower. Unweaned heifer calves under 400 pounds sold steady to $5.00 lower, heifers weighing 400 to 649 pounds sold mostly steady to $3.00 higher and the heavier weighted heifers weren't well compared to last week's offering. Calves with two rounds of preconditioning shots continue to sell strong with $4.00 to $8.00 premiums. Receipts this week were relatively light even though the weather favored traveling conditions and the market traded stronger. Heading into next week's trade, monitoring how many calves are hitting the marketplace and how corn prices are trading will be key. The CME feeder cattle index for Nov. 5: down $1.28, $136.63.
LEAN HOGS:
The lean hog market is stuck trading in either a sideways pattern or is pushed lower as the market pushes the contracts away from resistance levels. The pork cutout value continues to trade in a choppy manner as higher and lower swings vary upon the day, but thankfully the industry continues to slaughter hogs at an impressive speed. December lean hogs closed $2.52 lower at $64.90, February lean hogs closed $1.45 lower at $67.02 and April lean hogs closed $0.10 lower at $70.42. Pork cutouts totaled 307.57 loads with 273.95 loads of pork cuts and 33.63 loads of trim. Pork cutout values: down $2.32, $84.06. Friday's slaughter is estimated at 488,000 head, 3,000 head more than a week ago and 4,000 head more than a year ago. Saturday's kill is projected to be around 260,000 head. The CME lean hog index for Nov. 4: down $0.53, $71.52.
MONDAY'S CASH HOG CALL: Steady. Moving forward, the cash hog market is going to really come down to managing two factors while the market corrects. Packers are vigorously processing hogs, which will push them to dip into the cash market from time to time, but with the hog market pressured to correct from recent highs, their ambition to support the cash market is slim.
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