GENERAL COMMENTS:
From Friday to Friday, livestock futures scored the following changes: December Live cattle off $3.82, February Live cattle off $3.40; January Feeder cattle up $0.88, March Feeder cattle off $1.15; December Lean hogs off $0.17, February Lean hogs off $1.12; December Pork cutout up $0.70, December Pork cutout up $0.70.
Strong gains developed in livestock futures late Friday with traders focusing on the lack of bearish news in the WASDE report released Friday morning. Light to moderate gains held through the morning before the report was released, but the report helped to stimulate additional buyer interest, even though overall volume at the end of the week remained generally sluggish. Traders will now take the weekend to assess further moves, with the hope and potential for follow-through buyer support developing Monday.
Hog prices closed higher on the Daily Direct Afternoon hog report, up $0.17 with a weighted average of $51.88 on 3,548 hogs. March corn closed down 2 1/2 at $4.855 and January soybean meal closed down $2.10 at $404.7. The Dow Jones Industrial Average is up 130.49 at 36,247.87.
LIVE CATTLE:
Live cattle futures started higher but held narrow gains through most of the morning. Following the December WASDE report, renewed buyer support moved into the live cattle complex. Cattle futures closed $3 per cwt higher in all nearby contracts, as strong support was seen across all cattle trade. Beef production in 2024 increased 180 million pounds from November's report, but the fact that current year production held steady is causing some market support and optimism. Cash cattle activity is quiet Friday with the expectation that most if not all business has wrapped up.
Cash prices this week have been seen at $171 per cwt live basis in the South and $271 per cwt in the North. This is a $3 per cwt loss from last week's weighted average and $4 per cwt lower for dressed cattle in the North. December live cattle closed $3.10 higher at $165.45, February live cattle closed $3.20 higher at $165.725 and April live cattle closed $3.35 higher at $169.3.
Friday's slaughter is estimated at 122,000 head, 1,000 head less than a week ago and 2,000 head more than a year ago. Saturday slaughter is expected at 11,000 head.
Boxed beef prices closed lower: choice down $1.83 ($288.01) and select down $0.93 ($257.9) with a movement of 167.11 loads (107.41 loads of choice, 27.52 loads of select, 9.13 loads of trim and 23.05 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Limited activity is expected Monday, but the futures market and beef value direction early in the week will go a long way in cash market moves as the week continues.
FEEDER CATTLE:
Feeder cattle futures posted strong late-week gains with increased underlying support seen in live cattle market. The pressure during the weak left prices lower in most cattle contracts from last week. With January futures posting gains over $5 per cwt, the potential for additional spillover buying support moving back into the complex.
January feeders closed $5.03 higher at $215.3, March feeders closed $4.90 higher at $216.075 and April feeders closed $4.78 higher at $219.2. The CME Feeder Cattle Index for Dec. 6: down $2.22, $220.04.
LEAN HOGS:
Moderate gains developed in the second half of the trading session across lean hog futures as traders looked at a generally neutral WASDE report, limiting the market fears that have helped to push prices lower over the last couple of weeks. Although gains in the hog complex were much less subdued than cattle buying interest, the upward movement at the end of the week left a positive attitude across the complex, with the potential for additional buyer interest moving in early next week.
December lean hogs closed $0.88 higher at $68.425, February lean hogs closed $1.20 higher at $68.975 and April lean hogs closed $1.53 higher at $76.15. Friday's hog slaughter is estimated at 484,000 head, 4,000 head more than a week ago and 7,000 head more than a year ago. Saturday slaughter is expected at 257,000 head. Pork Cutouts totaled 261.96 loads with 233.63 loads of pork cuts and 28.33 loads of trim. Pork cutout values are up $2.30 at $85.67. The CME Lean Hog Index for Dec. 6: down $0.31, $69.12.
MONDAY'S HOG CALL: Steady. Renewed futures support at the end of the week and late week gains in cash hog prices may help to stimulate steady to firm cash values early Monday morning.
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