GENERAL COMMENTS:
It may be a shortened holiday week, but the cattle complex isn't willing to let an opportunity pass it by and miss out on advancing the market. Both the live cattle and feeder cattle contracts closed higher and the cash cattle market pushed the cash market higher once again. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.50 with a weighted average of $55.41 on 7,227 head. December corn is up 3 3/4 cents per bushel and December soybean meal is down $7.80. The Dow Jones Industrial Average is up 194.55 points and NASDAQ is down 79.62 points.
LIVE CATTLE:
As we approach the Thanksgiving holiday, feedlots undeniably have much to be thankful for. After what felt like a bloodbath in the live cattle market the last two years, the last month has reignited feedlot's hope and, as cattlemen look to 2022, their aspirations for a strong market only continue to grow as the market supports their desire. December live cattle closed $0.97 higher at $135.40, February live cattle closed $0.45 higher at $139.42 and April live cattle closed $0.52 higher at $142.80. The live cattle contracts began trading strong right from Tuesday's start and had no trouble closing higher alongside a rallying cash cattle market. At first feedlots let the bids of $136 sit for a while, but as the day grew on, some feedlots took $136 and some passed packers up on their offer. With last week's weighted average ranging from mostly $133 to $134, the $136 price is fully $2.00 higher than last week. Both Iowa and Nebraska saw dressed cattle interest at $214, but some of those cattle were bought with time ($4.00 higher than last week's weighted average). If there's one thing that we can conclude about Tuesday's market and what the industry's players revealed through the day's trade, it's that packers still need cattle, beef demand is still thriving (look at the day's boxed beef movement) and feedlots are back in the driver's seat of the market and aren't afraid to point this ship North to higher prices. The market expects to see more trade come Wednesday.
Tuesday's slaughter is estimated at 122,000 head, steady with a week ago and 1,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.61 ($278.64) and select down $1.06 ($262.67) with a movement of 193 loads (118.23 loads of choice, 25.59 loads of select, 10.80 loads of trim and 38.41 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: $2.00 to $4.00 higher than last week. With feedlots already seeing trade $2.00 to $4.00 higher than last week, Wednesday's market isn't going to struggle to demand those higher prices.
FEEDER CATTLE:
This week's feeder cattle market hasn't been easily shaken as the market posted a flashy $1.00 to $2.00 rally amid the corn market's $0.03 to $0.04 higher close. With the momentum that's pushing the cash cattle market higher, feeders have their eyes locked onto 2022 and the optimism that looms in the new year. With beef demand exceptional, and packers running chain speeds at full throttle, the feeder cattle market continues to see excellent demand as feedlots what to have calves and feeders committed for their pens as next spring the fat cattle market is shaping up to be very rewarding, especially if feedlots have access to affordable feed. January feeders closed $2.67 higher at $164.37, March feeders closed $1.57 higher at $165.67 and April feeders closed $1.32 higher at $168.02. The CME Feeder Cattle Index for Nov. 22: up $1.14, $157.43.
LEAN HOGS:
Early Tuesday morning the lean hog market wasn't met with much support but as the day traded on, traders took a harder look at the market and ultimately ended up supporting the complex before the day's end. What was more interesting than the board's mostly higher close was that cash hog prices closed higher. The cash market's $0.50 jump likely stems from the fact that packers wanted to get enough hogs committed before the week's end so that they weren't have to work the market as aggressively in the days to come leading up to the holiday. December lean hog closed $0.50 lower at $74.15, February lean hogs closed $0.25 higher at $83.27 and April lean hogs closed $0.20 higher at $87.95. Pork cutouts totaled 325.27 loads with 269.87 loads of pork cuts and 55.40 loads of trim. Pork cutout values: down $1.33, $84.92. Tuesday's slaughter is estimated at 480,000 head, 4,000 head less than a week ago and 16,000 head less than a year ago. Monday's slaughter was revised to 475,000 head, 5,000 head less than what was originally stated. The CME Lean Hog Index for Nov. 19: up $0.58, $72.88.
WEDNESDAY'S CASH HOG CALL: Steady to somewhat lower. With packers moving the market higher on Tuesday, it's not likely that they are apt to do it again come Wednesday as hogs are readily available throughout the countryside.
No comments:
Post a Comment