GENERAL COMMENTS:
It was a mixed day for the livestock complex as the live cattle contracts dipped lower, but both the feeder cattle and lean hog contracts were able to maintain their higher position through the day's end. No new cash cattle sales were reported throughout the day as packers did the vast majority of their buying on Thursday. December corn is down 6 1/4 cents per bushel and December soybean meal is down $4.60. The Dow Jones Industrial Average is down 259.96 points.
From Friday-to-Friday, livestock futures scored the following changes: October live cattle up $2.08, December live cattle up $1.83; October feeder cattle up $1.30, November feeder cattle up $0.98; December lean hogs up $1.85, February lean hogs up $1.58; December corn up $0.11, March corn up $0.11.
Friday's Cold Storage report shared that total red meat supplies in freezers were up 3% from the previous month but down 1% from last year. Total pounds of beef in freezers were up 6% from the previous month but down 2% from last year. Frozen pork supplies were up 1% from the previous month but down slightly from last year. Stocks of pork bellies were down 31% from last month and down 40% from last year.
LIVE CATTLE:
Even though the market may have closed slightly lower Friday afternoon as traders checked out of the market early knowing that the Cattle on Feed report was going to be released shortly after the market's close, it was a tremendous week for the live cattle complex. With the support of tremendous beef demand and the $2.00 advancement in the cash market -- traders were able to pressure resistance on Thursday which is why traders felt OK leaving the market merely idle throughout Friday's hours. December live cattle closed $0.10 lower at $189.15, February live cattle closed $0.02 lower at $189.92 and April live cattle closed steady at $190.35. No new cash cattle trade was reported throughout the day as packers did most of their buying on Thursday. Throughout the week Southern live cattle traded for $190 which is $2.00 higher than last week's weighted average and Northern dressed cattle traded for $298 which is also $2.00 higher than last week's weighted average.
Friday's slaughter is estimated at 113,000 head -- 7,000 head more than a week ago and 4,000 head less than a year ago. Saturday's slaughter is projected to be around 19,000 head. The week's total slaughter is estimated at 623,000 head -- 15,000 head more than a week ago and 11,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.07 ($322.24) and select closed $0.74 ($295.08) with a movement of 87 loads (43.86 loads of choice, 15.38 loads of select, 8.78 loads of trim and 18.89 loads of ground beef).
MONDAY'S CATTLE CALL: Steady to somewhat higher. Given the fact that packers have increased throughput leads me to believe that they're chasing boxed beef sales and want to continue to capitalize on these high prices which may allow feedlot managers to price cattle steady/somewhat higher again next week.
FEEDER CATTLE:
Even though the live cattle complex closed lower Friday afternoon the feeder cattle contracts remained confident, and the spot January contract was able to maintain its position above the market's 100-day moving average through closing. I think more than anything traders knew that placements were going to be lighter than a year ago on the Cattle on Feed report, so they boldly continued to support the complex through the day's end.
November feeders closed $0.05 higher at $248.57, January feeders closed $0.10 higher at $245.62 and March feeders closed $0.10 higher at $243.97. The Oklahoma Weekly Cattle Auction Summary shared that throughout the entire state and when compared to last week, feeder steers traded $1.00 to $4.00 higher and feeder heifers traded $1.00 to $3.00 lower. Steer calves sold $4.00 to $9.00 lower, but heifer calves sold $1.00 to $4.00 higher. Feeder cattle supply over 600 pounds was 55%. The CME feeder cattle index 10/24/2024: down $0.47, $249.09.
LEAN HOGS:
The lean hog complex closed higher as traders were pleased to continue to see strong pork demand. And with the note in this afternoon's Cold Storage report, we may be able to expect continued support, especially for the belly which has been seeing significant price swings here lately. December lean hogs closed $1.02 higher at $79.67, February lean hogs closed $0.62 higher at $83.42 and April lean hogs closed $0.40 higher at $86.65. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.41 with a weighted average price of $75.66 on 3,083 head. Pork cutouts totaled 252.99 loads with 216.60 loads of pork cuts and 36.40 loads of trim. Pork cutout values: up $0.79, $98.94. Friday's slaughter is estimated at 485,000 head -- 10,000 head more than a week ago and 4,000 head more than a year ago. Saturday's slaughter is projected to be around 156,000 head. The CME lean hog index 10/23/2024: up $0.54, $85.20.
MONDAY'S HOG CALL: Steady. Packers don't normally buy aggressively on Mondays and it's not likely that they'll need to next week.
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