GENERAL COMMENTS:
It was a prosperous Monday for livestock contracts as support was willing to move all three markets higher and the day closed substantially stronger in the feeder cattle market. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.50 with a weighted average of $58.33 on 8,012 head. December corn is up 3 1/4 cents per bushel and December soybean meal is up $0.20. The Dow Jones Industrial Average is up 361.86 points and NASDAQ is up 38.41 points.
LIVE CATTLE:
Monday's live cattle market was generous considering how bearish the market closed last week. December live cattle closed $1.90 higher at $110.00, February live cattle closed $2.25 higher at $112.90 and April live cattle closed $2.10 higher at $116.55. With it being a holiday week, packers will try to get cattle bought cheaper because of the shortened week. But feedlots are expected to price cattle at least steady with last week's trade, if not slightly higher. As feedlots watch boxed beef prices scale stronger, they realize that packers have more to give. Monday's cash cattle trade was at a standstill as packers showed slight interest but not enough to develop anything into actual business. Monday's slaughter is estimated at 120,000 head, 1,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed higher: choice up $3.25 ($241.60) and select up $2.50 ($217.48) with a movement of 122 loads (71.21 loads of choice, 25.19 loads of select, 9.90 loads of trim and 15.56 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady to $1.00 higher. With packers having sold a lot of out-front orders, they need to keep processing speeds elevated in order to meet all their commitments. With that being the case, feedlots have an opportunity to move the market higher, especially if the board cooperates.
FEEDER CATTLE:
Monday's feeder cattle market soaked up every ounce of support that the market offered and couldn't have cared less that the corn market kept its $0.03 to $0.05 gain in nearby contracts through closing. The feeder cattle market moved the livestock contracts higher as it was the market that made the boldest moves throughout the day. January feeders closed $3.22 higher at $137.82, March feeders closed $2.90 higher at $137.27 and April feeders closed $2.80 higher at $138.97. A Joplin Regional Stockyards in Carthage, Missouri, compared to a week ago, steer calves and yearling steers under 750 pounds sold steady, steers weighing over 750 pounds traded steady to $5.00 higher. Heifer calves traded steady to $2.00 higher and yearling heifers sold steady. Demand was considered moderate to somewhat strong and supply was heavy, but thankfully the day's stronger futures market helped boost the market's moral. The CME feeder cattle index for Nov. 20: up $0.19, $136.94.
LEAN HOGS:
Although the lean hog market has been dead set on determining a nearby low and has traded sideways over the last month, Monday's lean hog market got to soak up some of the support floating through the marketplace. December lean hogs closed $0.82 higher at $64.95, February lean hogs closed $1.77 higher at $67.12 and April lean hogs closed $1.97 higher at $70.20. Unfortunately, until the market sees some significant consumer demand, the market may be pressured to continue to trade mostly steady. Pork cutouts totaled 443.35 loads with 407.17 loads of pork cuts and 36.18 loads of trim. Pork cutout values: down $0.40, $77.77. Monday's slaughter is estimated at 497,000 head - 20,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index for Nov. 19: down $0.63, $68.14.
TUESDAY'S CASH HOG CALL: Steady. Given that it's a holiday-shortened week, the cash hog market will most likely be uneventful as packers plan their schedules for an unusual week.
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