GENERAL COMMENTS:
Friday (and this past week really) ending up being a disappointing trade week for the livestock contracts. Meanwhile, the cash cattle market was also less than what the week had hoped for as feedlots aspired to move the market $2.00 to $3.00 higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.46 with a weighted average of $55.81 on 7,508 head. March corn is down 6 cents per bushel and January soybean meal is down $4.50. The Dow Jones Industrial Average is up 248.74 points and NASDAQ is up 87.05 points.
From Friday to Friday livestock futures scored the following changes: December live cattle down $1.75, February live cattle down $0.85; January feeder cattle down $0.05, March feeder cattle up $0.43; December lean hogs unchanged, February lean hogs down $0.67.
LIVE CATTLE:
The live cattle contracts didn't get a gust of support before Friday's close and ended up closing lower. December live cattle closed $0.72 lower at $108.87, February live cattle closed $0.17 lower at $112.40 and April live cattle closed $0.12 lower at $116.17. All in all, it was a very disappointing week for the live cattle market, as the market saw deterioration from all fronts -- the futures market, the cash market and in boxed beef prices. Friday's cash cattle trade was merely clean-up trade for steady to slightly lower prices than what the week had already established. Friday's slaughter is estimated at 117,000 head, 2,000 head more than a week ago and 5,000 head less than a year ago. Saturday's slaughter is projected to be around 69,000 head.
Boxed beef prices closed lower: choice down $4.17 ($235.02) and select down $2.42 ($217.51) with a movement of 132 loads (81.05 loads of choice, 19.13 loads of select, 15.06 loads of trim and 16.34 loads of ground beef).
MONDAY'S CASH CATTLE CALL: Steady. With boxed beef prices scaling lower, feedlots are going to have their work cut out for them in wanting to move the cash cattle market higher.
FEEDER CATTLE:
The feeder cattle contracts toughed out the day's closing to keep some of the complex trading higher. January feeders closed $0.02 lower at $139.77, March feeders closed $0.10 higher at $139.42 and April feeders closed $0.07 higher at $140.77. The market should have been able to use the corn market's weaker close (closing $0.05 to $0.06 lower in nearby contracts) to its advantage, but without trader support, the market had little upward potential. The Nebraska Weekly Livestock Auction shared that, compared to last week, steer and heifer calves sold $4.00 to $8.00 higher, while yearlings sold unevenly steady. After last week's shortened holiday week, sale barns have noticed more long-weaned calves on the market versus primarily seeing bawling calves. There's good demand for both lightweight and heavyweight calves as the lighter calves can be used for grass next spring and the heavier calves can, potentially, make the April board. The beautiful fall weather has really made for excellent gains on calves and helps keep calves healthy. The CME feeder cattle index for Dec. 3: down $0.26, $139.18.
LEAN HOGS:
The lean hog market gave the futures market a run for its money early this week, trying to break out of its mundane sideways trend, but as pressure grew later in the week the complex submitted to simply closing lower. December lean hogs closed $0.15 lower at $65.87, February lean hogs closed $0.35 lower at $66.57 and April lean hogs closed $0.02 higher at $70.50. Pork cutouts total 347.84 loads with 304.24 loads of pork cuts and 43.61 loads of trim. Pork cutout values: up $1.72, $78.17. Friday's slaughter is estimated at 491,000 head, 11,000 head more than a week ago 3,000 head more than a week ago. The CME lean hog index for Dec. 2: down $0.16, $66.55.
MONDAY'S CASH HOG CALL: Lower. The lean hog complex is seeing a vigorous pace in slaughter speeds, but without stellar consumer demand, packers won't be keen to moving the cash market higher.
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