GENERAL COMMENTS:
It was a lousy day for the livestock contracts as none closed higher and demand wasn't seen in the cash market. The only exciting news was that the pork cutouts saw some late holiday buying, which shot ham prices higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $4.16 with a weighted average of $57.76 on 4,955 head. March corn is up 1 1/4 cents per bushel and January soybean meal is up $7.50. The Dow Jones Industrial Average is up 35.32 points and NASDAQ is up 100.07 points.
LIVE CATTLE:
The cash cattle market wasn't met with unwavering support from the live cattle contracts, but that didn't shake feedlots' confidence. Sure, boxes may be scaling lower as the market set its seasonal high earlier this year than normal, but we also cannot forget the prices that the boxed beef market has traded this past year have not been normal by any means; at some point, the prices are going to have to wane lower to more consumer-friendly prices. Thankfully, with the recent leverage that feedlots have regained, their confidence has also strengthened, and they weren't worried about waiting until Thursday or potentially even Friday to trade cattle. Asking prices are set at $144 to $145 in the Southern Plains and in the North at $224. Wednesday's slaughter is estimated at 122,000 head, steady with a week ago and 3,000 head more than a year ago. January live cattle closed $0.67 lower at $137.55, February live cattle closed $0.55 lower at $138.67 and April live cattle closed $0.57 lower at $141.87.
Boxed beef prices closed lower: choice down $3.92 ($264.11) and select down $2.59 ($253.09) with a movement of 161 loads (96.89 loads of choice, 26.76 loads of select, 10.35 loads of trim and 27.22 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: $1.00 higher. Feedlots still have the potential to inch this market a little higher as packers are moving cattle through plants at a vigorous rate, but we also know that they've been slowly adding to their supply, which, at some point, will mean they don't have to participate in the cash market as aggressively.
FEEDER CATTLE:
The feeder cattle complex can't blame its lousy technical performance from lack of demand or higher corn prices -- Wednesday's weaker close stemmed from the fact that traders weren't willing to step up to the plate while the live cattle market traded softer. January feeders closed $1.62 lower at $163.40, March feeders closed $1.60 lower at $165.87 and April feeders closed $1.70 lower at $168.50. At Winter Livestock Auction in La Junta, Colorado, compared to last week, feeder steers and heifers under 500 pounds and weaned 50 days or longer sold $5.00 to $8.00 higher, with instances of even $10.00 higher on steers. Steers weighing 500 to 700 pounds sold $3.00 to $5.00 higher and steers over 700 pounds sold mostly steady to $3.00 higher with instances as much as $8.00 higher. Heifers weighing 500 to 700 pounds sold steady to $2.00 higher, and those over 700 pounds sold $2.00 to $3.00 higher. The CME Feeder Cattle Index for Dec. 7: up $0.20, $161.16.
LEAN HOGS:
Well, if the lean hog market isn't appreciative of some late holiday buying, it should be. Wednesday's biggest news in the hog market was the abrupt $9.35 jump in pork cutouts. The big jump stemmed from the lofty $29.58 jump in the ham price and also from the $9.06 jump in bellies. Unfortunately, this didn't have a positive affect on the lean hog futures as they still closed fully lower and it didn't entice packers to support the cash hog market anymore either. As the market turns to Thursday, we could see an uptick in the market's morale if Thursday's export report happens to yield strong exports. December lean hogs closed $1.25 lower at $70.82, February lean hogs closed $0.50 lower at $76.05 and April lean hogs closed $0.62 lower at $81.42. Pork cutouts totaled 412.90 loads with 359.01 loads of pork cuts and 53.90 loads of trim. Pork cutout values: up $9.35, $90.44. Wednesday's slaughter is estimated at 472,000 head, 8,000 head less than a week ago and 20,000 head less than a year ago. The CME Lean Hog Index for Dec. 6: up $0.16, $70.94.
THURSDAY'S CASH HOG CALL: Somewhat higher. Yes, packers were extremely aggressive in last week's cash market and they've been able to build up supplies for the weeks ahead. But with there being some last-minute holiday buying creeping into the market, they may look to pick up a few more hogs.
No comments:
Post a Comment