GENERAL COMMENTS:
When it comes to agricultural commodities, lean hog and corn futures were the losers of the day with light pressure seen in corn price levels through the entire session, while lean hog trade held gains through the morning, but quickly eroded at the end of the trading session. Cattle futures were able to muster up additional follow through buyer support, helping to add to the upward market shift seen in late October. There continues to be uncertainty as to how much and how quickly price support can develop in both cattle and hog markets, but the general feeling is that market lows have likely been set, allowing room for additional trade within the current price ranges. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.78 with a weighted average of $68.82 on 7,407 hogs. December corn closed down 3 3/4 at $4.75 and December soybean meal closed down $0.60 at $430.4. The Dow Jones Industrial Average is up 221.71 at 33,274.58.
LIVE CATTLE:
Compared to the rest of the livestock complex, the live cattle market posted the most aggressive gains and losses for the day. Expiring October live cattle futures ended 37 cents lower, while April live cattle contracts led gains in all other livestock markets, posting a 95-cent gain at the closing bell. Overall, there was very little direction developing in the market as traders used Halloween as a good reason to remain on the sidelines, maybe preparing for spooky parties to come, since nothing scary really developed during the market session. With traders closing the books on October and waiting for additional technical support during early November, markets remained sluggish. Cash cattle trade remains undeveloped Wednesday afternoon with just a few bids developing late in the day through the South. Bids in Kansas are seen at $183 per cwt live basis, while bids in the north are undeveloped. Asking prices are holding at $188 live basis in the South and $294 dressed basis in the North. There may be some market activity seen Thursday, but given the overall lack of fireworks in futures trade so far this week, it would not be shocking if Friday was the day to trade most cattle in all areas. December live cattle closed $0.08 higher at $183.625, February live cattle closed $0.55 higher at $185.175 and April live cattle closed $0.88 higher at $187.55.
Wednesday's slaughter is estimated at 122,000 head, 4,000 head less than a week ago and 8,000 head less than a year ago.
Boxed beef prices closed lower: choice down $3.00 ($302.18) and select down $0.95 ($278.55) with a movement of 136.40 loads (62.10 loads of choice, 34.83 loads of select, 13.67 loads of trim and 25.80 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $2 Higher. Given the lack of market activity so far this week, feeders remain optimistic of higher prices in the near future. This is allowing for asking prices to remain firm, looking for an upward price shift at the end of the week.
FEEDER CATTLE:
Early gains in feeder cattle futures eroded slightly at the end of the trading session, although firm gains were able to be sustained in all contract months. Overall trade volume remained generally light with very little additional market-worthy news available to bend the ears of feeder cattle traders on as markets roll seamlessly into the month of November. Late summer contracts continue to hold a firm premium to nearby contracts with the expectations of continued tight supplies lasting well into next year. But for now, most traders are content rebuilding the market structure following October's price tumble. Consistency in buyer support and firming fundamentals are likely to be the best support the market can hope for in the upcoming days. November feeders closed $0.88 higher at $238.575, January feeders closed $0.83 higher at $238.025 and March feeders closed $0.58 higher at $240.325. The CME Feeder Cattle Index for October 30: up $0.02, $237.25.
LEAN HOGS:
Lean hog futures fell victim to overall market inactivity Wednesday afternoon. After being able to hold narrow but positive price moves through the entire morning across the entire complex, the lack of additional buyers in a very thinly traded market left the door wide open for price pressure. This quickly turned nearby contracts from thin gains to triple-digit losses, with not enough market interest or time left in the complex for prices to recover. Given the strong market move higher over the last week, a light volume pullback based on position squaring is not technically significant. Although this does weaken the recent market trend of continued gains over the last few sessions. December lean hogs closed $1.58 lower at $70.15, February lean hogs closed $1.43 lower at $73.45 and April lean hogs closed $1.10 lower at $79.10. Wednesday's hog slaughter is estimated at 487,000 head, 1,000 head more than a week ago and 4,000 head less than a year ago. Pork Cutouts totaled 323.00 loads with 297.82 loads of pork cuts and 25.18 loads of trim. Pork cutout values are up $0.02 at $86.5. The CME Lean Hog Index for October 30: down $0.38, $77.13.
THURSDAY'S HOG CALL: Steady to $1 Lower. The softness in cash hog prices Wednesday as well as late-day futures weakness is likely to soften initial packer bids early Thursday morning.
No comments:
Post a Comment