The livestock complex closed fully higher Wednesday afternoon as support continued to grow and develop throughout the day. Cattle contracts were leery at the beginning of the day but ultimately closed stronger alongside the hog market. Hog prices closed higher on the National Direct Afternoon Hog Report, up $1.49 with a weighted average of $61.28 on 10,095 head. December corn closed up 4 1/4 cents per bushel, and December soybean meal was up $8.50. The Dow Jones Industrial Average was up 367.63 points, and NASDAQ was up 430.21 points.
LIVE CATTLE:
The live cattle market turned to trading fully higher after the noon hour, and the market's confidence spurred the cash cattle market into testing the week's trade. December live cattle closed $0.05 higher at $107.87, February live cattle closed $0.47 higher at $110.77 and April live cattle closed $0.97 higher at $114.67. The live cattle market's biggest advocate has been the change in boxed beef prices as of late. As the boxed beef market scales higher, packers are willing to pay more for cattle and hopefully are enticed to keep slaughter at a swift progression. Wednesday's cash cattle market saw the biggest trade happen in Kansas where cattle sold for $106 to $107 -- steady to $1.00 higher than a week ago. The rest of the countryside's trade was limited, but Nebraska sold a handful of cattle for $106, Texas sold some cattle for $107 and Iowa sold very few cattle for $163 to $164. Wednesday's slaughter is estimated at 119,000 head -- 1,000 head more than a week ago and 1,000 head fewer than a year ago.
Boxed beef prices closed higher: choice up $0.75 ($210.19) and select up $1.60 ($197.05) with a movement of 166 loads (110.97 loads of choice, 16.53 loads of select, 18.27 loads of trim and 20.27 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady to somewhat higher. With the strength that's building in the live cattle market, there's room for feedlots to push the market another $1.00 stronger. But with cattle already being sold this week and packers seeing that they can get feedlots pushed into selling for only steady to $1.00 higher, it makes it tough for other feedlots to up the ante.
FEEDER CATTLE:
Even with a $0.04 to $0.05 rally in the corn market, the feeder cattle contracts prevailed through Wednesday's close and secured gains over $1.57 in nearby contracts. November feeder cattle closed $1.57 higher at $137.70, January feeder cattle closed $1.97 higher at $135.15 and March feeders closed $1.72 higher at $134.87. Traders seemed more willing to dive into Wednesday's market after the noon hour, at which point both live cattle contracts and especially the feeder cattle market saw a considerable jump in support. At Ozarks Regional Stockyards in West Plains, Missouri, compared to a week ago, steers and heifers sold $2.00 to $14.00 higher with excellent demand and a moderate supply. There were some fancy lots that brought exceptional demand with strong genetic lines, a vaccination program and that were long weaned. The CME feeder cattle index 11/3/2020: up $0.54, $138.57.
LEAN HOGS:
Wednesday's lean hog market traded consistently throughout the day, rallying modestly in most of the complex and upward of $1.00 stronger in some of the deferred contracts. December lean hogs closed $0.95 higher at $66.35, February lean hogs closed $1.47 higher at $67.00 and April lean hogs closed $1.22 higher at $69.40. The market's gains weren't only seen throughout the futures market but also in the cash market as packers upped their bids and bought right at 10,000 head. Pork cutout values continue to trend lower, but Wednesday's regression wasn't so steep that it undermined the rally on the board nor the cash market. Pork cutouts total 375.74 loads with 321.58 loads of pork cuts and 54.16 loads of trim. Pork cutout values: down $0.58, $82.41. Wednesday's slaughter is estimated at 489,000 head - 4,000 head more than a week ago and 4,000 head less than a year ago. The CME lean hog index 11/2/2020: down $0.60, $72.88.
THURSDAY'S CASH HOG CALL: Steady. The cash hog market is likely to trade steady as pork cutout values continue to be pressured. If Thursday's export report is fruitful for the market, packers may be prompted into buying more hogs and pushing the market slightly higher.
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