GENERAL COMMENTS:
It's been a phenomenal week for both the cattle contracts and lean hog market. Both markets have seen follow-through trader support and are heading into Friday's trade fully higher. Potentially the most interesting market to watch is how feedlots navigate this week's cash cattle trade. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.50 with a weighted average of $57.39 on 4,890 head. March corn is down 5 cents per bushel and January soybean meal is down $1.00. The Dow Jones Industrial Average is down 177.25 points and NASDAQ is up 54.38 points.
Markets are closed Thursday for the Thanksgiving holiday and will close early on Friday.
LIVE CATTLE:
For the most part, feeders have stuck to their guns are really pushing for higher prices. There has been some cash cattle trade, but thus far it's been a light movement at steady to $1.00 higher than a week ago. The futures market has really supported cash sellers and higher boxed beef prices will keep packers encouraged to keep buying and processing. December live cattle closed $0.20 higher at $111.37, February live cattle closed $0.22 higher at $114.17 and April live cattle closed $0.27 higher at $117.42.
Wednesday's slaughter is estimated at 118,000 head, 1,000 head less than a week ago and year ago.
Boxed beef prices closed higher: choice up $0.76 ($245.06) and select up $1.19 ($220.90) with a movement of 116 loads (75.79 loads of choice, 18.62 loads of select, 8.20 loads of trim and 13.61 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Higher. This week has aligned perfectly for feedlots to add to the cash cattle market as boxed beef prices scale higher and the futures market shows ample support. Achieving $113 by the end of the week isn't out of the question if feedlots don't weaken late Wednesday evening and continue to rally together.
FEEDER CATTLE:
Feeder cattle contracts closed higher with the most trader support seen in nearby contracts. January feeders closed $1.57 higher at $140.17, March feeders closed $1.15 higher at $139.27 and April feeders closed $1.05 higher at $140.40. The market has not only been supported by traders this week, but also by the corn market's regression, which closed mostly $0.05 lower in nearby contracts. The rest of the week will be quiet, but next week's trade should see more action again. At Ozarks Regional Stockyards in West Plains, Missouri, compared to a week ago, steer and heifer calves traded mostly steady with some seven-weight steers trading as much as $5.00 higher. Demand was seen across the marketplace with a lighter run tested on all weights. Next week is expected to be a larger scale as producers try to market their calves in-between the Thanksgiving and Christmas holiday. The CME feeder cattle index for Nov. 24: up $0.18, $137.30.
LEAN HOGS:
The lean hog market was able to keep the day's support through closing. December lean hogs closed $0.87 higher at $66.17, February lean hogs closed $0.92 higher at $67.67 and April lean hogs closed $0.52 higher at $70.75. Given that it's a holiday week and that the lean hog market lacks substantial support to move out of its sideways trend, the market enjoyed the light trader interest that it has received this past week.
Pork cutouts totaled 396.71 loads with 356.23 loads of pork cuts and 40.48 loads of trim. Pork cutout values: up $0.77, $78.35. Wednesday's slaughter is estimated at 494,000 head, steady with a week ago and 15,000 head more than a year ago. The CME lean hog index for Nov. 23: down $0.13, $67.70.
FRIDAY'S CASH HOG CALL: Lower. The week will most likely taper out on a softer note as it's a shortened week and packers don't have to worry about getting hogs bought as there's ample supply.
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