The livestock complex is trading mostly lower into Friday's afternoon as the contracts simply can't summon enough interest from traders to drive prices higher. It's not surprising that the contracts are trading lower, as the market has seen hit and miss demand in both beef and pork cuts this week, which leaves traders with more questions for the market to answer. December corn is up 5 cents per bushel and December soybean meal is up $2.80. The Dow Jones Industrial Average is down 182.62 points.
LIVE CATTLE:The trend later this week of mixed boxed beef prices hasn't helped traders in their desire to push the December live cattle contract above the restless $152.77 resistance plane. Heading into the noon hour, the complex is trading fully lower as packers haven't shown any more interest in the cash market, as boxed beef prices are lower and as corn is fronting a higher trend into the afternoon. December live cattle are down $1.15 at $151.92, February live cattle are down $1.25 at $153.77 and April live cattle are down $0.95 at $157.52. The cash cattle market could see some more clean up trade develop ahead of Friday's close, but at this point no bids have been renewed. Asking prices for cattle left on showlists are around $151 in the South, and $244 in the North. Throughout the week Southern live deals have been marked at mostly $150, fully steady with last week's weighted averages, and Northern dressed sales were at mostly $242, also fully steady with last week's weighted average basis Nebraska.
Boxed beef prices are lower: choice down $3.72 ($259.55) and select down $1.64 ($235.19) with a movement of 51 loads (31.97 loads of choice, 5.84 loads of select, 4.99 loads of trim and 8.23 loads of ground beef).
FEEDER CATTLE:With the corn market pushing a modest rally into Friday's afternoon, it comes as no surprise that feeders are trading lower. Unfortunately, they're doing so in an aggressive enough matter to where the market has already given back all that Thursday's market gained. January feeders are down $2.20 at $179.60, March feeders are down $1.95 at $181.85 and April feeders are down $1.72 at $185.22.
LEAN HOGS:The lean hog complex tried to advance itself and foster some sort of a rally at Friday's start, but as the noon hour approaches, the nearby contracts are trading mostly lower into the day's afternoon. It's extremely odd that, as of Friday morning, 327 hogs have been reported in the cash market. We expected that packers would draw back from the cash sector come Friday as processing speeds are expected to wane, but to the degree of only buying 327 head? That's one heck of a cutback. Nevertheless, it will be interesting to see if packers simply going to sit Friday's cash market out, or if more trade will be reported Friday afternoon. Once again pork cutout values are higher which will hopefully carrying into Friday afternoon.
The projected lean hog index for Nov. 10 is down $0.33 at $88.63, and the actual index for Nov. 9 is down $0.50 at $88.96. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.01 with a weighted average of $88.22, ranging from $85.00 to $92.50, on 327 head and with a five-day rolling average of $85.83. Pork cutouts total 142.04 loads with 129.80 loads of pork cuts and 12.24 loads of pork cuts. Pork cutout values: up $1.46, $98.00.
No comments:
Post a Comment