The live cattle complex closed in a mixed fashion by Friday's end, as the cattle complex saw hit and miss support from traders while the lean hog complex went higher. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.15 with a weighted average of $90.54 on 2,941 head. December corn is down 1 1/2 cents per bushel and December soybean meal is up $10.00. The Dow Jones Industrial Average is up 828.52 points.
From Friday to Friday, livestock futures scored the following changes: October live cattle down $0.10, December live cattle up $0.57; November feeder cattle down $0.47, January feeder cattle steady; December lean hogs down $3.02, February lean hogs down $1.68; December corn down $0.04, March corn down $0.04.
LIVE CATTLE:The live cattle complex ended the week on a lower note, which is somewhat disappointing given the tremendous week the market had fundamentally. From a fundamental standpoint, the market couldn't have had a much better week as boxed beef prices traded higher, throughput was again aggressive and cash cattle prices are on fire. Throughout the week, Southern live cattle traded at mostly $150, which is $2.00 higher than last week's average, and Northern dressed cattle traded at $240, which was nearly $5.00 higher than last week's weighted average. Traders aren't displeased with where the market sits technically, but given that they recently pushed the market to new highs, they're now looking for strong, follow-through support fundamentally to keep the market trading higher. Friday's CFTC report did share that 22,470 noncommercial contracts were added to the market, which will likely increase price volatility. December live cattle closed $0.42 lower at $153.00, February live cattle closed $0.52 lower at $156.32 and April live cattle closed $0.27 lower at $159.22.
Friday's slaughter is estimated at 124,000 head, 2,000 head more than a week ago and 4,000 head more than a year ago. Saturday's slaughter is estimated at 32,000 head. This week's estimated slaughter stands at 668,000 head, 5,000 head less than a week ago and steady with a year ago.
Boxed beef prices closed higher: choice up $0.77 ($263.26) and select up $2.58 ($234.49) with a movement of 93 loads (50.42 loads of choice, 10.32 loads of select, 15.27 loads of trim and 16.56 loads of ground beef). The choice/select spread sits at $28.77. Throughout the week choice cuts averaged $261.19 (up $9.26 from last week) and select cuts averaged $229.59 (up $7.69 from last week) and the week's total movement of cuts, grinds and trim totaled 607 loads.
MONDAY'S CATTLE CALL: Higher. It's unlikely that cattle trades on Monday, but when they do trade next week, it will likely be again for higher prices as front-end supplies of market-ready cattle are incredibly sparse.
FEEDER CATTLE:The feeder cattle contracts were able to round out Friday's trade mixed as the nearby contracts were pleased to see the regression in corn prices, but that obviously wasn't enough support to help the nearby contracts close higher. November feeders closed $0.25 lower at $177.87, January feeders closed $0.07 lower at $180.37 and March feeders closed $0.12 higher at $182.57. The market is continuing to hover between the 40-day and 100-day moving averages, but with more time obviously being spent down around the 40-day moving average, as the market lacks the power it needs to trade higher and thin margins and high input costs are hindering the market's upside potential. Oklahoma's Weekly Cattle Auction Summary shared that, throughout the week, and throughout the entire state, compared to last week, feeder steers and steer calves traded $2.00 to $5.00 higher. Feeder heifers traded steady to $3.00 higher and heifer calves sold mostly $1.00 to $3.00 higher, but there were instances of $10.00 higher on the lighter weights. Rains across the state has lightened the mood, though more rain is needed. Slaughter cows sold steady to $3.00 higher and slaughter bulls traded $2.00 lower. Feeder cattle supply over 600 pounds was 42%. The CME Feeder Cattle Index for Oct. 27: unavailable at this time.
LEAN HOGS:The lean hog complex was able to power through Friday's end and close higher as Thursday's drastic drop moved the contracts far enough away from resistance to allow for an easy higher close. December lean hogs $0.97 higher at $86.10, February lean hogs closed $0.70 higher at $88.85 and April lean hogs closed $0.57 higher at $92.70. Helping the lean hog market close higher was Friday's aggressive chain speeds along with the higher close in pork cutout values. Friday's jump in carcass price solely stemmed from the $19.72 jump in bellies, and then somewhat from the $3.39 jump in the picnic price. Pork cutouts total 310.86 loads with 276.27 loads of pork cuts and 34.59 loads of trim. Pork cutout values: up $2.88, $101.34. Friday's slaughter is estimated at 487,000 head, 9,000 head more than a week ago and 15,000 head more than a year ago. Saturday's kill is estimated to be around 122,000 head. The CME Lean Hog Index for Oct. 26: down $0.32, $94.15.
MONDAY'S HOG CALL: Lower. Given that packers have time and time again shown that they don't really want to support the cash market until they see how early demand sits, it's unlikely that cash hog prices will be higher until Tuesday or Wednesday.
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