Thursday did not disappoint the live cattle or lean hog markets as both were able to close higher and see gains throughout the retail sector. Meanwhile, the feeder cattle complex dipped lower upon seeing corn prices higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.29 with weighted average of $61.28 on 5,167 head. December corn is up 4 cents per bushel and December soybean meal is up $2.10. The Dow Jones Industrial Average is up 542.52 points and NASDAQ is up 300.15 points.
LIVE CATTLE:
Thursday's market was favorable to feedlots again as boxed beef prices scaled higher, slaughter continues to speed along at a quick rate and cash cattle prices traded better than last week. December live cattle closed $0.47 higher at $108.35, February live cattle closed $0.67 higher at $111.45 and April live cattle closed $0.62 higher at $115.30. There was a modest movement of cattle in the Northern Plains Thursday afternoon for mostly $107 live and $167 dressed. Thursday's live cattle traded $1.00 stronger than a week ago and the North's dressed trade was roughly $4.00 higher than a week ago. Thursday's slaughter is estimated at 120,000 head, 10,000 head more than a week ago and steady with a year ago.
Beef net sales of 20,400 mt reported for 2020 were up 8% from the previous week and 9% from the prior four-week average. The three primary increases were from Japan (4,700 mt, including decreases of 400 mt), South Korea (4,600 mt, including decreases of 700 mt) and China (3,600 mt, including decreases of 100 mt).
Thursday's actual slaughter data shared depressing news for cattlemen. For the week ending Oct. 23, actual slaughter totaled 644,853 head, down slightly from the previous week. Steer carcass weights chimed in at an all time high, jumping to 931 pounds, up 2 pounds from the previous week and heifer carcass weights declined 3 pounds to 847 pounds on average.
Boxed beef prices closed higher: choice up $2.36 ($212.55) and select up $1.92 ($198.97) with a movement of 149 loads (96.26 loads of choice, 31.84 loads of select, 6.28 loads of trim and 15.10 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Seeing that both the Northern and Southern Plains have been able to successfully move cattle this week, Friday's trade will most likely stay within the already tested prices of this week.
FEEDER CATTLE:
Rallying corn prices put the feeder cattle market's rally on hold as the corn market closed $0.03 to $0.04 higher in nearby contracts. Even though this week's cash cattle trade and live cattle contracts are trading higher, the worry about rising feed costs is enough to slow the feeder cattle complex in its tracks and wane the market's rally. November feeder cattle closed $0.12 lower at $137.57, January feeder cattle closed $0.25 higher at $135.40 and March feeders closed $0.12 lower at $134.75. At Winter Livestock in Pratt, Kansas compared to a week ago feeder steers weighing 700 to 800 pounds sold $3.00 to $6.00 higher. Feeder steers weighing 800 to 900 pounds sold $2.00 lower while steers weighing over 900 pounds sold unevenly steady. Feeder heifers weighing 600 to 800 pounds sold $2.00 to $4.00 higher, heifers weighing 800 to 900 pounds sold steady to $1.00 lower and heifers weighing 950 to 1,050 pounds sold $5.00 to $7.00 higher. The CME feeder cattle index for Nov. 4: down $0.66, $137.91.
LEAN HOGS:
The lean hog market saw Thursday's trade as a wide opportunity as the board scaled as much as $1.47 stronger in nearby contracts and the day's closing cutout value was able to close considerably stronger. December lean hogs closed $1.07 higher at $67.42, February lean hogs closed $1.47 higher at $68.47 and April lean hogs closed $1.12 higher at $70.52. Pork cutouts totaled 266.32 loads with 218.67 loads of pork cuts and 47.66 loads of trim. Pork cutout values: up $3.97, $86.38. Thursday's slaughter is estimated at 490,000 head, 7,000 head more than a week ago and 5,000 head less than a year ago. The CME lean hog index for Nov. 3: down $0.83, $72.05.
Pork net sales of 42,200 mt reported for 2020 were up 46% from the previous week and 18% from the prior four-week average. The three primary increases were from Mexico (14,700 mt, including decreases of 700 mt), China (10,300 mt, including decreases of 1,400 mt) and South Korea (5,100 mt, including decreases of 100 mt).
Thursday's actual slaughter data shared bad news for the hog industry as well. For the week ending Oct. 24, slaughter was down slightly from the week before totaling 2,676,056 head and weights were heavier. Live weights averaged 292 pounds (up 2 pounds) and dressed weights averaged 217 pounds (up 1 pound).
FRIDAY'S CASH HOG CALL: Steady to slightly lower. Packers don't seem to be overly concerned about buying more hogs to keep up with their swift slaughter pace. As the weekend nears, packers will probably participate mildly but not dive into the market enough to boost prices.
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