GENERAL COMMENTS
The livestock complex didn't see higher prices ahead of Thursday's end, but the market did see strong cash cattle trade, and the lean hog market saw better fundamental support too by the day's close. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.81 with a weighted average of $81.44 on 6,205 head. March corn is up 3 cents per bushel and January soybean meal is down $4.80. The Dow Jones Industrial Average is down 764.13 points.
LIVE CATTLE:
The futures market may have not closed higher, but the market's fundamentals in the live cattle complex didn't disappoint by Thursday's end. With both cash cattle prices and boxed beef prices able to close higher, the market again proved that, even though its immediate future may be shaky through the holiday, its long-term trajectory is higher. Feedlots worked diligently to get prices steady to $1.00 higher and by waiting to trade cattle until later in the week, their efforts were rewarded. Northern cattle sold for mostly $248, which is $1.00 higher than last week's weighted average, and Southern live cattle traded for $155, which is steady to $0.50 lower than last week's weighted average. December live cattle closed $0.45 lower at $154.05, February live cattle closed $0.85 lower at $154.85 and April live cattle closed $0.65 lower at $158.92. Thursday's slaughter is estimated at 122,000 head, 4,000 head less than week ago but steady with a year ago.
Beef net sales of 10,900 mt for 2022 were primarily for South Korea (4,100 mt), Japan (3,700 mt) and Mexico (1,600 mt).
Thursday's actual slaughter data shared that, for the week ending Dec. 3, steers averaged 925 pounds, which is 2 pounds less than the previous week and 3 pounds lighter than a year ago. For the same week, heifers averaged 850 pounds, which is steady with the previous week but is 1 pound lighter than a year ago.
Boxed beef prices closed higher: choice up $4.23 ($254.30) and select up $1.82 ($228.51) with a movement of 108 loads (67.49 loads of choice, 15.06 loads of select, 14.16 loads of trim and 11.08 loads of ground beef). The choice/select spread sits at $25.79.
FRIDAY'S CATTLE CALL: Steady. Given that prices are set for the week, it's likely that any trade that does develop on Friday will be for steady money.
FEEDER CATTLE:
It was a dreary day for the feeder cattle market as the complex never stood a chance at trading higher while the corn market pushed a modest $0.02 to $0.03 rally through closing, as the live cattle market lent little to no support. Yes, cash cattle prices did end averaging steady to $1.00 higher, but with corn prices pushing a modest rally, the slight support from the cash market wasn't enough to tip the scales in favor of feeders. With the snowstorm that's passed through parts of Montana, Wyoming, North and South Dakota, and is now working its way east, many sale barns in the North have canceled their sales due to unsafe road conditions. January feeders closed $0.55 lower at $183.05, March feeders closed $0.77 lower at $184.67 and April feeders closed $0.67 lower at $188.25. The CME Feeder Cattle Index for Dec. 14: up $0.04, $179.50.
LEAN HOGS:
Both cash hog prices and pork cutout values were able to round of Thursday higher, but that didn't seem to matter to the lean hog contracts. February lean hogs closed $1.75 lower at $81.65, April lean hogs closed $1.55 lower at $89.17and June lean hogs closed $1.05 lower at $104.02. The lean hog complex could trade a little bit come Friday as the market did see better support from its fundamentals throughout Thursday's market, but with the market testing its support plane, sideways trade could be able as good as the market gets. Pork cutouts totaled 320.93 loads with 283.57 loads of pork cuts and 37.36 loads of trim. Pork cutout values: up $1.22, $85.49. Thursday's slaughter is estimated at 489,000 head, 1,000 head less than a week ago and 32,000 head more than a year ago. The CME Lean Hog Index for Dec. 13: up $0.06, $81.68.
Pork net sales of 14,400 mt for 2022 were primarily for Mexico (9,600 mt), China (2,500 mt) and Japan (1,600 mt).
FRIDAY'S HOG CALL: Lower. Given that packers have shown the market little interest this week, it's highly unlikely that they'll become more aggressive in their buying come Friday.
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