GENERAL COMMENTS
It was a mixed day for the livestock complex as both the lean hog and feeder cattle markets traded higher, but the live cattle market wasn't as supported. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $1.26 with a weighted average of $84.08 on 2,834 head. December corn is down 3/4 cent per bushel and December soybean meal is down $1.40. The Dow Jones Industrial Average is down 211.16 points.
LIVE CATTLE:
Traders spent Monday mostly moving from the December live cattle contract to the new spot market of February. Traders are again long for fundamental support this week, which will be sought after from boxed beef prices, cash cattle prices and throughput. At this point, boxed beef price are seeing a little bit of pushback and the cash market could be faced with a steady market again this week, but throughput is anticipated to perform exceptionally well. December live cattle closed $0.05 higher at $151.57, February live cattle closed $0.70 lower at $152.55 and April live cattle closed $0.62 lower at $156.42. It's too early in the week for any cash cattle trade to have developed, and this week's business isn't anticipated to break loose until late Wednesday or Thursday.
Monday's slaughter is estimated at 128,000 head, 5,000 head more than a week ago and 7,000 head more than a year ago. New showlists appear to be mixed, higher in Kansas, and Nebraska/Colorado, but lower in Texas.
Last week's negotiated cash cattle trade totaled 102.284 head. Of that, 70% (72,043 head) were committed for the nearby delivery, while the remaining 30% (30,241 head) were committee for the deferred delivery. The bulk of last week's business took place on Wednesday, with a little cleanup trade on Thursday and Friday. Southern live cattle traded at $147 to $150, mostly at $150, however, which was steady with the previous week's weighted average. Northern dressed cattle traded for $238 to $244, but mostly at $242, which was also steady with the previous week's weighted average.
Boxed beef prices closed lower: choice down $0.96 ($257.98) and select down $2.06 ($233.21) with a movement of 139 loads (73.98 loads of choice, 14.60 loads of select, 8.90 loads of trim and 41.29 loads of ground beef). The choice/select spread sits at $24.77.
TUESDAY'S CATTLE CALL: Steady. With packers having a sizeable commitment of cattle already booked for the deferred delivery, it's likely that this week's market trades steady.
FEEDER CATTLE:
With the grain complex trading $0.03 to $0.04 lower through Monday's end, the feeder cattle contracts used Monday's weakness in the grain sector to advance their own position. January feeders closed $0.87 higher at $179.45, March feeders closed $0.62 higher at $181.77 and April feeders closed $0.22 higher at $184.82. The January contract has been teetering just above its 40-day moving average, and Monday's market was again able to close above that threshold. If Tuesday's market can again show a decrease in grain prices, then feeders shouldn't have any trouble trading higher. At Joplin Regional Stockyards in Carthage, Missouri, at their midsession point, and when compared to a week ago, feeder steers were trading steady while feeder heifers were trading steady to $3.00 lower. Feeder cattle supply over 600 pounds was 45%. The CME Feeder Cattle Index for Nov. 11: down $0.23, $175.23.
LEAN HOGS:
The lean hog complex traded in a mildly supported fashion a throughout Monday's trade as the market is hopeful that demand is going to increase. December lean hogs closed $0.52 higher at $84.87, February lean hogs closed $0.57 higher at $88.97 and April lean hogs closed $0.27 higher at $94.37. More than anything, the market clung to the positive feedback from President Biden and China's President Xi that happened at the G20 summit as the U.S. hog market could benefit from getting to export more product to China. Pork cutout prices are unavailable to due to packer submission problems. Monday's slaughter is estimated at 493,000 head, 1,000 head less than a week ago and 10,000 head more than a year ago. Saturday's hog slaughter was revised to 102,000 head. The CME Lean Hog Index for Nov. 10: down $0.33, $88.63.
TUESDAY'S HOG CALL: Higher. With the holidays approaching, hog prices could see an increase as packers want to ensure that they have enough product to sell over the holiday run between Thanksgiving and Christmas.
No comments:
Post a Comment