GENERAL COMMENTS:
From Friday to Friday livestock futures scored the following changes: October Live cattle off $0.28, December Live cattle off $2.40; November Feeder cattle off $4.92, January Feeder cattle off $7.35; December Lean hogs up $4.48, December Lean hogs up $4.48; December Pork cutout up $2.85, December Pork cutout up $2.85. Live cattle futures led the complex higher with nearby contracts holding gains at or above $3 per cwt through much of the session. Limited trade volume at the end of the session seemed to slightly erode bullish market activity, although December contracts still posted a $2.90 per cwt gain at the closing bell. The bearish cloud that has hovered over the cattle complex all week seems to have been partially lifted, allowing buyers who have been waiting on the sidelines to actively move back into the market Friday. Feeder cattle futures posted moderate gains but are much less aggressive at this point. Triple-digit gains in lean hog futures not only helped to rekindle market support, but also created consistent buying interest through the last three trading sessions. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.63 with a weighted average of $70.07 on 3,665 hogs. December corn closed up 1 1/2 at $4.808 and December soybean meal closed up $12.90 at $442.4. The Dow Jones Industrial Average is down 366.71 at 32,417.59.
LIVE CATTLE:
Live cattle futures led the complex higher Friday with gains of $3 per cwt seen in nearby contracts early in the session. December contracts closed $2.90 per cwt higher helping to bring additional widespread support to the entire livestock complex. This renewed buyer interest in the complex was instrumental in drawing buyers back into an oversold market complex. With all nearby live cattle contracts not trading above $180 per cwt, there is expected to be early week focus on potential longer-term support that may develop at the end of October. Cash cattle trade in the South became more available Friday with prices at $183 to $185 per cwt by the end of the week. This late week trade activity is posting prices fully steady with last week's price levels. Trade in the North developed in earnest over the last couple of days with a range from $287 to $292, mostly $290 per cwt. These levels are $4 per cwt lower than last week. The aggressive rally in futures trade Friday made waiting until the end of the week worth it for those that were able to hold out. October live cattle closed $2.30 higher at $184.00, December live cattle closed $2.90 higher at $182.225 and February live cattle closed $2.55 higher at $182.95. Friday's slaughter is estimated at 16,000 head, 102,000 head less than a week ago and 107,000 head less than a year ago. Thursday's slaughter is estimated at 125,000 head, steady with a week ago and 2,000 head less than a year ago. Weekly slaughter is 620,000 head. Saturday expected slaughter is 16,000 head. Boxed beef prices closed higher: choice up $0.72 ($307.57) and select up $0.43 ($280.12) with a movement of 134.46 loads (69.49 loads of choice, 37.40 loads of select, 15.03 loads of trim and 12.54 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Early trade next week is expected to remain subdued with the focus Monday on show list distribution and inventory taking.
FEEDER CATTLE:
Continued support developed Friday in all feeder cattle futures trade, although the support early in the session slowed significantly near the end of the day and traders started adjusting positions for the weekend. The ability to hold gains seen at the end of the week will be the focus as traders return to the market Monday morning. Sharp gains Friday in live cattle futures helped to reduce overall concerns of further price pressure. The strong gains in the soy complex at the end of the week had less of an impact on feeder cattle gains than some would have figured, but the market still remains vulnerable at current price levels. November feeders closed $0.40 higher at $236.9, January feeders closed $0.63 higher at $235.7 and March feeders closed $0.83 higher at $238.575. The CME Feeder Cattle Index for October 25: down $0.89, $239.73.
LEAN HOGS:
Strong moves higher in lean hog futures developed Friday with December contracts closing above $70 per cwt at the end of the week. This move helped to secure price levels well above contract lows seen earlier in the week. This underlying support in all lean hog futures contracts is helping to bring additional technical and fundamental buyer support back into the complex. Although it may be challenging to continue this upward pace through the next couple of weeks, traders are focusing on established market lows. The underlying support in nearby lean hog futures is also expected to add support to pork values and cash hog prices in the days and weeks to come. December lean hogs closed $1.85 higher at $70.475, February lean hogs closed $1.68 higher at $73.50 and April lean hogs closed $1.28 higher at $78.925. Friday's hog slaughter is estimated at 191,000 head, 288,000 head less than a week ago and 294,000 head less than a year ago. Weekly slaughter totals are at 2.42 million head. Saturday slaughter is expected at 191,000 head. Pork Cutouts totaled 276.64 loads with 235.04 loads of pork cuts and 41.60 loads of trim. Pork cutout values are up $0.67 at $86.4. The CME Lean Hog Index for October 25: down $0.22, $78.19.
MONDAY'S HOG CALL: Steady. Traders will continue to closely monitor a combination of futures trade moves and pork values early in the week. Steady to firm cash hog prices are expected heading into next week.
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