The livestock complex was leery of Wednesday's trade and meekly traded sideways until around the noon hour when the live cattle market started to see some substantial support develop. Unfortunately, the feeder cattle complex and lean hog contracts both closed lower as trader interest was obsolete. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.62 with a weighted average of $61.05 on 1,435 head. December corn is down 5 3/4 cents per bushel and December soybean meal is down $2.10. The Dow Jones Industrial Average is down 23.29 points and NASDAQ is up 232.57 points.
LIVE CATTLE:
It's a good week to be a feedlot manager/owner as the board keeps climbing higher and the cash cattle market is ripe to add another $2.00, maybe even $3.00. Early Wednesday morning the live cattle market was like the rest of the livestock contracts and traded hesitantly, but as time progressed more trader interest develop and ultimately led to a fully higher close. December live cattle closed $0.52 higher at $112.40, February live cattle closed $0.17 higher at $115.27 and April live cattle closed $0.52 higher at $118.80. The market's cash cattle trade was uneventful yet again, and the longer the wait, the more advantageous the week's trade could be for feedlots. Asking prices in the South are at $112. Wednesday's slaughter is estimated at 115,000 head, 4,000 head less than a week and year ago.
The Fed Cattle Exchange Auction listed a total of 1,119 head, of which none actually sold, 527 head were listed as unsold, and 592 head were listed as PO (passed offer). The state-by-state breakdown looks like this: Kansas 148 total head, with all PO ($110.00); NE 96 total head, with all 96 head unsold; TX 875 total head, with 431 head unsold and 444 head listed as PO ($110.00 to $110.25). The delivery date/weighted averages breakdown is as listed: one- to nine-day delivery: 579 head total and one- to 17-day delivery at 540 head total.
Boxed beef prices closed mixed: choice up $0.59 ($22.84) and choice down $0.09 ($208.46) with a movement of 147 loads (90.44 loads of choice, 28.58 loads of select, 4.59 loads of trim and 23.15 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Higher. It's going to be a good week to watch the cash cattle market as the market is expected to add another $2.00 to $3.00 to last week's averages. Trade could develop throughout Thursday's business and will most likely trickle into Friday's trade.
FEEDER CATTLE:
Even though the corn market traded $0.03 to $0.05 lower, the feeder cattle market was still leery from Tuesday's ginormous corn rally that it closed mostly lower. November feeder cattle closed $0.25 lower at $140.60, January feeders closed $0.20 lower at $140.20 and March feeders closed $0.35 lower at $139.20. With the cash cattle market's trade waiting until later in the week to add easily $2.00, if not $3.00 to the market, the feeder cattle complex could rally off the support brewing in the live cattle sector. At OKC West Livestock Auction in El Reno, Oklahoma, compared to a week ago, feeder steers were lightly tested but most traded $1.00 to $2.00 higher. Feeder heifers found strong demand as they traded $8.00 to $10.00 higher. Demand was good to very good for all classes, but with feed costs higher, buyers have been more attracted to the heavier weighted feeders, which will be on feed for a shorter amount of time. Meanwhile, steer and heifer calves sold $4.00 to $10.00 higher with most of the market's interest being for lighter weight calves that can go out to wheat pastures that have recently gotten moisture to help bump its growth. The CME feeder cattle index for Nov. 10: up $0.12, $135.97.
LEAN HOGS:
The lean hog market closed in a disappointing fashion as the board keeps trailing lower and, even though the market's cash hog trade was slightly higher, it was on such a minute sampling that it couldn't positivity affect the market. December lean hog closed $0.32 lower at $64.80, February lean hogs closed $0.17 lower at $66.40 and April lean hogs closed $0.32 lower at $70.10. Pork cutouts totaled 371.96 loads with 318.83 loads of pork cuts and 53.13 loads of trim. Pork cutout values: up $0.16, $83.14. Wednesday's slaughter is estimated at 459,000 head, 30,000 head less than a week ago and 34,000 head less than a year ago. The CME lean hog index for Nov. 9: up $0.12, $71.25.
THURSDAY'S CASH HOG CALL: Lower. With the lean hog market unable to muster up support, the cash hog market doesn't have much incentive to grow stronger this week.
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