Thursday's futures market traded in a lackluster fashion, but the market that caught the most attention is this week's developing cash cattle trade! With Veterans Day falling in the middle of the week, Thursday's weekly export data will be shared Friday. Hog prices closed lower on the National Direct Afternoon Hog Report, down $1.02 with a weighted average of $60.17 on 7,224 head. December corn is down 9 cents per bushel and December soybean meal is down $4.60. The Dow Jones Industrial Average is down 317.46 points and NASDAQ is down 76.84 points.
LIVE CATTLE:
I fully believe in giving credit where credit is due, and this week's cash cattle market is on fire, solely because of the well-thought out marketing strategy of feedlots! If you're one of the feedlots pushing cash cattle trade late into the week to get as much as you can for your cattle -- hats off to you, my friends!
The live cattle contracts traded slightly lower throughout Thursday's trade, but the lack of trader interest didn't hurt the week's cash cattle market. December live cattle closed $0.42 lower at $111.97, February live cattle closed $0.47 lower at $114.80 and April live cattle closed $0.45 lower at $118.35. Thursday's exciting trade developed in Nebraska as some dressed cattle sold for $172, $7.00 higher than last week's weighted average and are for delivery the week of Nov. 30. Asking prices in the South have now been bumped to $112 to $114 and in the North for $175-plus. Late Thursday afternoon, right before this report was due, some cattle did sell in the South for $110 ($3.00 higher than a week ago) and dressed cattle trade in Nebraska has advanced on a limited volume to $174 ($9.00 stronger). Friday's cash cattle market is going to be well-worth watching. Thursday's slaughter is estimated at 120,000 head, steady with a week ago and 1,000 head less than a year ago.
Thursday's actual slaughter data shared very exciting news for feedlots tediously watching carcass weights. For the week ending Oct. 31, slaughter was down slightly from the previous week totaling 639,523 head. Steer carcass weights dropped five pounds to average 926 pounds and heifer carcass weights gained one pound to average 848 pounds.
Boxed beef prices closed mixed: choice up $3.66 ($226.50) and select down $0.22 ($208.24) with a movement of 90 loads (51.05 loads of choice, 13.30 loads of select, 12.27 loads of trim and 13.24 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Higher. This week's cash cattle market is truly on fire as feedlots stick their heels in the ground and push packers to pay up for cattle this week.
FEEDER CATTLE:
Even though the live cattle contracts never came around to trading higher, the feeder cattle market took the weaker corn prices as an opportunity to trade higher, and they did so through Thursday's close. November feeders are down $0.52 at $140.07, January feeders are up $0.52 at $140.72 and March feeders are up $0.50 at $139.70. As the cash market continues to build in the fat cattle arena, Friday's trade is expected to be higher again, as feeders could see market support from all sides. At Winter Livestock Auction in Pratt, Kansas, compared to a week ago, feeder steers weighing 450 to 950 pounds sold $8.00 to $12.00 higher. Feeder heifers weighing 600 to 950 pounds sold steady and the lighter weight heifers weighing 400 to 600 pounds sold $7.00 to $8.00 higher. The CME feeder cattle index for Nov. 11: up $0.73, $136.70.
LEAN HOGS:
The lean hog market finally got some attention this week and was able to move the market higher through closing. December lean hogs closed $1.00 higher at $65.80, February lean hogs closed $0.32 higher at $66.72 and April lean hogs closed $0.25 higher at $70.35. Thursday's cash hog trade was lower, and the slightly lower close in the cutout value didn't help, but traders wanted to invest in the market either way, even without strong fundamental signals. Pork cutouts total 290.45 loads with 258.04 loads of pork cuts and 32.41 loads of trim. Pork cutout values: down $0.06, $83.08. Thursday's slaughter is estimated at 492,000 head, 2,000 head more than a week ago and 1,000 head more than a year ago. Wednesday's hog slaughter was revised to 454,000 head. The CME lean hog index for Nov 10: up $0.12, $71.37.
Thursday's actual slaughter data shared mixed news for the hog industry as carcass weights are still on the rise, but thankfully weekly slaughter continues to grow. For the week ending Oct. 31, hog slaughter totaled 2,693,618 head, and both live and dressed carcass weights were heavier. Live weights gained a pound from the previous week to average 293 pounds, and dressed weights gained a pound as well to average 218 pounds.
FRIDAY'S CASH HOG CALL: Lower. Unfortunately, producers don't have a leg up on the market right now and the futures are trading mostly lower this week alongside questionable cutout values.
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