GENERAL COMMENTS:
Early Wednesday morning it didn't look like it was going to be a promising day for the livestock complex as all three markets were trading lower. But as time went on, traders warmed up to the cattle contracts and supported the market enough to allow both the live cattle and feeder cattle markets to close fully higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.12 with a weighted average of $56.64 on 8,787 head and a five-day rolling average of $56.67. March corn is up 3 cents per bushel and January soybean meal is down $4.60. The Dow Jones Industrial Average is up 59.87 points and NASDAQ is down 5.73 points.
LIVE CATTLE:
The live cattle market may have traded cautiously earlier in the day, but as Wednesday's noon hour approached, the strength continued to grow. December live cattle closed $0.07 higher at $110.70, February live cattle closed $0.75 higher at $113.92 and April live cattle closed $0.35 higher at $117.17. There was some light cash cattle trade that developed for mostly steady prices. Northern dressed deals ranged from $172 to $174 -- $1.00 lower to $1.00 higher than last week's averages and southern live cattle sold for $110 to $112, which was again $1.00 lower to $1.00 higher than last week's business. Packers are really adamant about not wanting to see this week's cash cattle market go higher, but feedlots also know that their time to move the market is now if they are going to do so. Wednesday's slaughter is estimated at 120,000 head, 2,000 head more than a week ago and 3,000 head more than a year ago.
The Fed Cattle Exchange Auction listed a total of 1,025 head, of which 488 actually sold, 393 head were listed as unsold, and 144 head were listed as PO (Passed Offer). The state-by-state breakdown looks like this: Texas 779 total head, with 488 head sold at $110.50-$110.75, 147 head unsold, 144 head listed as PO ($110.50); Nebraska 246 total head, of which none sold. The delivery date/weighted averages breakdown is as listed: one- to nine-day delivery: 488 head total, 197 head sold, with a weighted average price of $110.75; one- to 17-day delivery 537 head total, 291 head sold, with a weighted average price of $110.50.
Boxed beef prices closed lower: choice down $2.51 ($240.89) and select down $0.13 ($222.95) with a movement of 123 loads (73.53 loads of choice, 12.47 loads of select, 17.87 loads of trim and 19.35 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady. It's going to be interesting to see how this week's prices pan out, as packers and feedlots have two totally different goals in mind. So far, there's only been a small movement of cattle trade, which is advantageous to feedlots, but whether or not they will be able to rally into the week's end and move the market $2.00 higher is unknown, and packers are in full opposition of the idea.
FEEDER CATTLE:
The feeder cattle market closed higher, not worrying about the corn market's $0.02 to $0.04 rally. January feeders closed $0.15 higher at $141.80, March feeders closed $0.32 higher at $140.97 and April feeders closed $0.22 higher at $142.10. At OKC West in El Reno, Oklahoma, compared to two weeks ago, feeder steers and heifers traded $2.00 to $5.00 lower. There was excellent demand for heavier weighing feeders that will make the April board. Demand was good as recent rains have given the area's wheat fields another shot of moisture and help improve grazing conditions. The CME feeder cattle index for Dec. 1: down $0.43, $139.87.
LEAN HOGS:
While the cattle contracts rallied into the afternoon, the lean hog market struggled to find support. December lean hogs closed $0.62 lower at $66.35, February lean hogs closed $0.87 lower at $67.87 and April lean hogs closed $0.50 lower at $70.87. It was encouraging to see the day have a positive midday cutout value followed by a stronger close in the afternoon. Packers have been buying a considerable number of hogs this week in the cash market and could be stocking up as they are seeing demand start to slowly increase. Pork cutouts total 365.11 loads with 320.31 loads of pork cuts and 44.80 loads of trim. Pork cutout values: up $2.78, $79.86. Wednesday's slaughter is estimated at 497,000 head, 3,000 head more than a week ago and steady with a year ago. Tuesday's hog slaughter was revised to 488,000 head. The CME lean hog index for Nov. 30: down $0.14, $66.67.
THURSDAY'S CASH HOG CALL: Steady to slightly lower. Packers have been active in this week's cash hog market in the sheer essence of how many hogs they have bought, but unfortunately for producers, there still isn't a need for them to pay exuberantly higher prices and make for a stronger cash market.
 |
| #completecalfcare |
No comments:
Post a Comment