GENERAL COMMENTS:
It was a slow and lethargic day for the cattle complex as traders paid little attention to the cattle market, but the lean hog complex successfully closed slightly higher as consumer demand helped encourage traders. But with the monthly Cattle on Feed report set to be released on Friday, the cattle complex is more skeptical. December corn is up 4 3/4 cents per bushel and December soybean meal is up $2.70. The Dow Jones Industrial Average is down 344.31 points.
LIVE CATTLE:
The live cattle complex rounded out Monday's trade lower as traders have elected to cautiously approach the market ahead of seeing what this week's cash cattle market is going to do and ahead of what Friday's Cattle on Feed report will unveil. October live cattle closed $0.62 lower at $187.00, December live cattle closed $0.50 lower at $186.82 and February live cattle closed $0.50 lower at $187.62. And although afternoon boxed beef prices were supportive; traders seem skeptical at this point of being overly supportive of the complex which could be the theme for this week's market. Monday's slaughter is estimated at 120,000 head -- steady with a week ago and 4,000 head less than a year ago. New showlists for the week appear to be lower in all three major feeding areas.
Last week the bulk of the fed cash cattle trade took place on Thursday as Southern live cattle traded for mostly $188, which was $1.00 higher than the previous week's weighted average, and Northern dressed cattle traded for mostly $296, which was steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 78,941 head; of that 77% (60,495 head) were committed to the nearby delivery while the remaining 23% (18,446 head) were committed to the deferred delivery.
Boxed beef prices closed higher: choice up $2.21 ($322.86) and select up $2.01 ($296.21) with a movement of 118 loads (69.51 loads of choice, 25.45 loads of select, 5.34 loads of trim and 17.65 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Given the fact that packers were able to buy some cattle with time last week, it's likely that prices will remain steady this week.
FEEDER CATTLE:
From a technical standpoint, it was a slow and doggish day for the feeder cattle market as the complex lacked technical support from the live cattle complex and could face some hesitancy from traders throughout the week until traders see what Friday's Cattle on Feed report yields. November feeders closed $1.00 lower at $246.60, January feeders closed $1.25 lower at $244.25 and March feeders closed $1.12 lower at $243.65. As the market continues to trade slightly below its 100-day moving average, traders will likely continue to float below that threshold unless significant support comes from both traders and the market's fundamentals which won't likely happen ahead of Friday's report. At Joplin Regional Stockyards in Carthage, Missouri compared to last week and at their midsession point, feeder steers under 800 pounds were selling steady to $5.00 lower, but heavier weights were trading steady to $4.00 higher. Feeder heifers were selling steady to $6.00 lower. Feeder cattle supply over 600 pounds was 65%. The CME feeder cattle index 10/18/2024: down $0.54, $250.26.
LEAN HOGS:
The lean hog complex was able to close higher as traders felt well supported by consumer demand in the form of stronger pork cutout values. The nearby contracts are trading at the highest levels since April, but so long as consumer demand continues to shine through, traders may continue to support the complex at the highest levels the market has since in the last six months. When looking at pork cutout values, it was impressive to see substantial gains in many of the cuts, but the loin (up $4.25) and the ham (up $2.82) saw the biggest gains for the day. December lean hogs closed $0.45 higher at $78.27, February lean hogs closed $0.40 higher at $82.25 and April lean hogs closed $0.30 higher at $85.92. Pork cutouts totaled 269.28 loads with 237.06 loads of pork cuts and 32.22 loads of trim. Pork cutout values: up $1.65, $98.24. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.17 averaging $75.22 on 376 head. Monday's slaughter is estimated at 488,000 head -- 15,000 head more than a week ago and 2,000 head more than a year ago. The CME lean hog index 10/17/2024: up $0.12, $83.96.
TUESDAY'S HOG CALL: Higher. One would hope that Tuesday's cash hog market would see more interest than what it did throughout Monday's trade as only a measly 376 head traded throughout the day. But with pork cutout values closing higher this afternoon, packer demand may be stronger.
No comments:
Post a Comment