GENERAL COMMENTS:
It was a quiet day throughout the livestock complex, as the futures market traded quietly throughout the day and traders didn't pay much attention to the marketplace given that it was a holiday. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.17 with a weighted average of $58.26 on 2,597 head. December corn is up 1/4 cent per bushel and December soybean meal is up $2.10. The Dow Jones Industrial Average is down 158.71 points and NASDAQ is up 81.58 points.
Happy Veterans Day to all veterans! Without the sacrifices you made to protect this great nation our lives would look completely different. I thank you for your time and I thank you for your selflessness. You are the true backbone of America.
LIVE CATTLE:
Even though it was Veterans Day and the banks are closed, packers still stepped out into the countryside and procured cattle. Thus far throughout the week, Southern live cattle traded for $131 to $132, mostly at $132 which is $3.00 higher than last week. Northern dressed cattle have traded from $205 to $207, mostly at $207 which is $4.00 higher. The futures market didn't do much of anything as traders opted to pay little attention to the market and let the contracts trade mostly sideways. December live cattle closed $0.12 lower at $131.87, February live cattle closed $0.42 lower at $136.40 and April live cattle closed $0.07 lower at $140.25. Thursday's slaughter is estimated at 117,000 head, 5,000 head less than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.38 ($285.14) and select up $0.67 ($267.29) with a movement of 133 loads (90.99 loads of choice, 22.09 loads of select, 8.04 loads of trim and 11.38 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Seeing that cattle have traded in both the North and the South already this week, prices will likely be steady with the week's trend.
FEEDER CATTLE:
The corn market's mostly lower close helped the feeder cattle contracts close higher as the market could finally breathe again after fearing starkly higher corn prices over the last couple of days. November feeders closed $0.67 higher at $157.32, January feeders closed $1.02 higher at $159.07 and March feeders closed $0.87 higher at $160.45. Buyers are continuing to put in their bids at sale barns as both feeders and calves are being met with plenty of market interest and cow-calf producers are seeing slightly higher prices. With higher inputs being the biggest limiting factor to buyers' acquisitions of new cattle for their lots, if the countryside receives some good moisture then the market's morale really will stand a chance rallying. At Southern Oklahoma Livestock Auction in Ada, Oklahoma, compared to last week, feeder steers traded unevenly steady, feeder heifers sold $2.00 to $4.00 stronger, and steer and heifer calves traded $4.00 to $7.00 higher. The CME Feeder Cattle Index for Nov. 10: up $0.49, $155.47.
LEAN HOGS:
The dynamics of the hog market have only gotten corkier as the week has traded on. It's not that surprising to see the futures market lower and the cash hog market not wildly sought after given that it's Veterans Day. However, one would have thought that packers would have picked up more than 2,500 hogs. That's an extremely light day and given that pork cutouts cracked $5.00 higher -- seeing only 2,500 head move seems odd. Thursday's export report will be released Friday morning and that may bring a little more clarity to the complex, but more than anything, we must remember that the holiday season is upon us, and this time of year the market sees volatile swings due to holiday buying. December lean hogs closed $0.32 lower at $75.37, February lean hogs closed $0.25 lower at $79.07 and April live cattle closed $0.32 lower at $83.82. Pork cutouts totaled 372.58 loads with 334.49 loads of pork cuts and 38.08 loads of trim. Pork cutout values: up $5.23, $95.80. Thursday's slaughter is estimated at 449,000 head, 28,000 head less than a week ago and 37,000 head less than a year ago. The CME Lean Hog Index for Nov. 9: down $0.51, $78.72.
FRIDAY'S CASH HOG CALL: Steady to somewhat lower. Hog prices are likely to trade steady into the week's end, but what will be more interesting is to see how many head trade.
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