GENERAL COMMENTS:
The cattle contracts changed their tune come Wednesday and opted to trade the markets higher. Meanwhile, the lean hog market wasn't as favorable, but the cash hog market continues to demand attention. Hog prices closed higher on the National Direct Afternoon, up $1.35 with a weighted average of $57.95 on 9,237 head. March corn is up 4 cents per bushel and January soybean meal is up $7.30. The Dow Jones Industrial Average is down 461.68 points and NASDAQ is down 283.64 points.
LIVE CATTLE:
Packers offered bids of $138 throughout the five-state feeding region, but feedlots wanted nothing to do with their steady bids. The cash cattle market will undoubtedly see some push back before next year's spring rally is set in stone, but by and large feedlots are growing a stronger back bone and are anxious to rally the market into 2022 and test the new year's waters right from the get go. Not only is the week gunning for a stronger cash cattle market, but thankfully in feedlot's case, the futures market championed a higher close before the day ended as well. December live cattle closed $0.12 higher at $136.00, February live cattle closed $0.70 higher at $138.60 and April live cattle closed at $141.77. The market is hopeful that Thursday's export report will yield positive news and continue to encourage packers to run fast processing speeds. Come Thursday afternoon be on the look out for the market's latest actual slaughter data as watching carcass weights is telling as well.
Wednesday's slaughter is estimated at 122,000 head, 1,000 head more than a week ago and 3,000 head more than year ago.
Boxed beef prices closed lower: choice down $1.46 ($270.22) and select down $2.32 ($257.97) with a movement of 227 loads (163.61 loads of choice, 26.29 loads of select, 8.30 loads of trim and 28.44 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: $1.00 higher. Feedlots are confident in their quest to demand higher cash cattle prices again this week, and with showlists being current, they have time on their side.
FEEDER CATTLE:
With how strong the feeder cattle complex is, the contracts rallied all through Wednesday's trade not seeming to bat an eye or tremor the least bit scared of the corn market's modest $0.03 to $0.05 rally. With there being less than a month left of 2021, the feeder cattle market is anxious for 2022 and the demand that it may bring. Looking out to the furthest deferred months of October and November 2022, feeders were pleased to see $180 pop up on their radar as that serves as a nice, $15 premium to the January contract. January feeders closed $0.97 higher at $165.82, March feeders closed $1.40 higher at $167.90 and April feeders closed $1.62 higher at $170.45. At Winter Livestock in La Junta, Colorado, compared to last week, steer and heifer calves that had been weaned for at least 50 days or longer sold $5.00 to $8.00 higher, with instances of even $10.00 higher. Yearling feeder steers and heifers over 700 pounds sold $3.00 to $5.00 stronger, and at times even $8.00 better. Slaughter cows sold steady to $1.00 higher and slaughter bulls sold steady to $2.00 stronger. The CME Feeder Cattle Index for Nov. 30: down $0.86, $161.60.
LEAN HOGS:
The lean hog complex grew a little more favorable from a technical sense as the spot and nearby contract of December 2021 and February 2022 were able to close modestly higher, but the majority of 2022 closed lower. The market gasped at the pork cutout drop of $4.33 lower and truthfully the losses were seen throughout all the cuts, it wasn't just one cut of the market that plummeted (loin down $4.18, butt down $7.09, picnic down $2.83, $rib down $1.32, ham down $5.16 and belly down $4.76). Even with the pork cutout market's lower ascend, and the futures markets skepticism, packers chased after the cash hog market rallying its market up over $1.00 stronger. Heading into Thursday's trade, be on the lookout for the latest pork export report, it could help send the market find a more discerning trajectory. Pork cutouts totaled 357.85 loads with 309.74 loads of pork cuts and 48.12 loads of trim. Pork cutout values: down $4.33, $82.37. Wednesday's slaughter is estimated at 480,000 head, 9,000 head more than a week ago and 10,000 head less than year ago. The CME Lean Hog Index for Nov. 29: down $0.56, $70.04.
THURSDAY'S CASH HOG CALL: Steady to somewhat lower. Packers have been rather aggressive in chasing the cash hog market as of late, at some point they are going to have their needs met and no long need to chase the market as wildly.
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