GENERAL COMMENTS:
Rounding out the week, the livestock contracts had some wins and losses. The week's cash cattle trade, boxed beef prices and lean hog contracts struggled but by the week's end, the positioning lost wasn't as stark, as both the live cattle and feeder cattle contracts closed higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.77 with a weighted average of $53.44 on 7,860 head. March corn is up 2 1/4 cents per bushel and January soybean meal is up $3.10. The Dow Jones Industrial Average is up 27.12 points and NASDAQ is down 40.20 points.
From Friday to Friday livestock futures scored the following changes: December live cattle down $0.13, February live cattle up $0.85; January feeder cattle down $0.05, March feeder cattle up $1.13; December lean hogs down $1.20, February lean hogs down $3.35.
LIVE CATTLE:
The live cattle contracts were pleased with how Friday's trade panned out, given that the entire marketplace was able to close higher. Nearby contracts secured gains mostly over $1.00, but regardless, after the resistance faced earlier this week, any bit upward momentum was gladly taken. December live cattle closed $0.82 higher at $108.75, February live cattle closed $1.40 higher at $113.25 and April live cattle closed $1.40 higher at $117.37. Friday's cash cattle trade was relatively quiet with just a few clean-up deals here and there. This week, southern live cattle sold for mostly $108, which is roughly $2.00 to $2.50 lower than last week's business, and northern cattle traded for mostly $168, which was $4.00 less than last week's trade. Friday's slaughter is estimated at 118,000 head, 1,000 head more than a week ago and 5,000 head less than a year ago. Saturday's slaughter is projected to be around 73,000 head.
Boxed beef prices struggled immensely this past week. Choice cuts averaged $220.51 (down $19.93 from the previous week) and select cuts averaged $202.15 (down $19.03) from the previous week). The week's total movement of cuts, grinds and trimming was impressive at 913 loads.
Boxed beef prices closed lower: choice down $0.71 ($213.88) and select down $2.76 ($195.71) with a movement of 131 loads (65.36 loads of choice, 25.80 loads of select, 20.81 loads of trim and 18.84 loads of ground beef).
MONDAY'S CASH CATTLE CALL: Steady to somewhat lower. Feedlots want more money and are willing to work every angle to try to get packers to pay more, but with the board's weaker demeanor and boxed beef prices falling aggressively, it's hard to get more money.
FEEDER CATTLE:
The feeder cattle contracts performed well through Friday's trade and closed upwards of $1.00 stronger in all nearby contracts. January feeders closed $2.12 higher at $139.72, March feeders closed $1.30 higher at $140.55 and April feeders closed $1.17 higher at $141.90. Traders continued to invest, which allowed the contracts to rally strong into the weekend. Hopefully the market's strength will carry into next week as the market still has plenty of room to trade before hitting resistance. South Dakota's Weekly Feeder Cattle report shared that, compared to a week ago, steer calves traded steady to $2.00 higher, with instances of $5.00 higher on 450 to 500 pound steers and heifer calves traded steady to $3.00 higher. Yearlings feeder steers traded $2.00 to $4.00 lower, and yearling heifers traded $3.00 to $5.00 lower with instances of $10.00 lower on 900- to 950-pound heifers. It's nice that the dry weather is allowing for the calves to keep their bloom and stay clean. The CME feeder cattle index for Dec. 10: down $0.45, $136.66.
LEAN HOGS:
The lean hog contracts, unfortunately, didn't have the same ending this week as the cattle contacts did. December lean hogs closed $0.12 lower at $64.67, February lean hogs closed $1.87 lower at $63.22 and April lean hogs closed $1.57 lower at $67.50. As the market simply lacks fundamental support, a sideways trend may be where the market trades until support comes to fruition. Friday's slaughter is estimated at 490,000 head, 1,000 head less than a week ago and 4,000 head more than a year ago. Saturday's slaughter is estimated 314,000 head. Pork cutouts totaled 407.09 loads with 355.28 loads of pork cuts and 51.81 loads of trim. Pork cutout values closed higher: choice up $1.28, $79.71. The CME lean hog index for Dec. 9: down $0.05, $65.61.
MONDAY'S CASH HOG CALL: Steady. Without a strong driving factor to incentivize packers into paying more for hogs, the hog market will most likely trade steady come Monday.
No comments:
Post a Comment