The livestock complex was pressured throughout the week, but Friday granted the market an opportunity to close higher. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.63 with a weighted average price of $73.92 on 8,370 head. December corn is down 5 1/2 cents per bushel and December soybean meal is down $5.10. The Dow Jones Industrial Average is up 288.01 points.
From Friday to Friday, livestock futures scored the following changes: October live cattle down $1.12, December live cattle down $1.25; October feeder cattle down $4.10, November feeder cattle down $4.03; October lean hogs up $2.13, December lean hogs up $1.80; December corn up $0.15, March corn up $0.15.
LIVE CATTLE:The live cattle complex headed into the weekend on a higher note as traders allowed the contracts to close higher. The spot December contract still closed below its 40-day moving average, but not by much as a mere $0.15 difference separates the two. Heading into next week's market, cattle enthusiasts will be anxiously waiting to see if the complex traders steady or if the market continues to be pressured. By this week's end, boxed beef prices did start to see some improvement and a little more support, which is desperately needed. October live cattle closed $1.12 higher at $183.07, December live cattle closed $1.30 higher at $186.67 and February live cattle closed $1.17 higher at $190.77. Throughout the week, Southern live cattle traded for $182, which is $1.00 lower than last week's weighted average and Northern dressed cattle traded for $288 to $291 which is $2.00 lower to $1.00 higher compared to last week's weighted average.
Friday's slaughter is estimated 112,000 head, 16,000 head more than a week ago and 7,000 head less than a year ago. Saturday's slaughter is projected to be around 17,000 head. The week's total slaughter is estimated at 628,000 head, 16,000 head more than a week ago but still 41,000 head less than a year ago.
Boxed beef prices closed higher: choice up $4.25 ($302.01) and select up $1.01 ($275.78) with a movement of 97 loads (57.30 loads of choice, 18.43 loads of select, 7.51 loads of trim and 13.59 loads of ground beef). Throughout the week choice cuts averaged $299.94 (down $0.92 from last week) and select cuts averaged $275.60 (down $2.71 from last week) and the week's total movement of cuts, grinds and trim totaled 667 loads.
MONDAY'S CATTLE CALL: Steady to $1.00 higher. It's hard to say what next week's cash cattle market will do without knowing exactly how many cattle sold this week, but with beef demand showing some improvement late this week packers could be more aggressive next week.
FEEDER CATTLE:It was a painful week for the feeder cattle complex and even though the market rounded out the week on a stronger note, the spot November contract still closed slightly below it's 100-day moving average. The 100-day moving average is a key threshold for the market to continue to track as a close sharply below this price point could indicate severe technical pressure for the market and consequently affect feeder cattle sales. The fundamental outlook for the market hasn't changed as limited supplies of feeder cattle will likely keep prices high this fall, but monitoring the country's economic state seems to be a burden that is only growing more and more pertinent to the feeder cattle market as interest rates could affect buying opportunities. October feeders closed $0.87 higher at $248.37, November feeders closed $0.57 higher at $250.87 and January feeders closed $0.72 higher at $253.77. The Oklahoma Weekly Cattle Auction Summary shared that, throughout the week and throughout the entire state, feeder steers traded $2.00 to $6.00 lower and feeder heifers sold $5.00 to $10.00 back. Steers calves sold mostly steady but heifer calves weighing less than 500 pounds sold $1.00 to $5.00 lower, while those weighing more than 500 pounds traded steady to $3.00 higher. Slaugther cows and bulls sold $2.00 to $4.00 lower. Feeder cattle supply over 600 pounds was 47%. The CME Feeder Cattle Index for Oct. 5: down $1.04, $250.41.
LEAN HOGS:The lean hog complex had a powerful day as the contracts closed more than $1.00 higher and packers even showed Friday's cash market some interest, which rarely happens. At this point, it seems somewhat safe to say that a new bottom has been established in the futures complex and that traders are interested in rebuilding the contracts so long as fundamental support will complement their ambitions. Next Thursday, Oct. 12, the market is set to receive another WASDE report, which could help clarify what demand is expected to be in the fourth quarter of 2023 and into 2024. October lean hogs closed $1.42 higher at $82.32, December lean hogs closed $1.30 higher at $73.57 and February lean hogs closed $1.62 higher at $77.57. Pork cutouts totaled 252.24 loads with 217.04 loads of pork cuts and 35.20 loads of trim. Pork cutout values: down $1.76, $93.22. Friday's slaughter is estimated at 476,000 head, 3,000 head more than a week ago and 1,000 head less than a year ago. Saturday's slaughter is projected to be around 153,000 head. The CME Lean Hog Index for Oct. 4: down $0.58, $83.70.
MONDAY'S HOG CALL: Steady to somewhat higher. It's unlike packers to show much interest in Friday's cash hog market, so seeing their support Friday could indicate that they're short-bought and in need of more hogs for upcoming kills.
No comments:
Post a Comment