GENERAL COMMENTS:
It was a powerful day for the livestock complex as all three of the markets were able to close higher thanks to ample trader support. Still no cash cattle trade has developed and asking prices still haven't been posted. Corn is up 7 cents per bushel and December soybean meal is down $0.60. The Dow Jones Industrial Average is down 6.71 points.
LIVE CATTLE:
The live cattle complex was well supported throughout the day and scored some notable gains by the day's close. For starters, the spot December contract attempted to pressure the market's resistance at the upper end of its one-month moving average, but ultimately ended up closing below that resistance plane. If fundamental support remains plentiful however through the remainder of the week, the market's demeanor seems to be strong enough to take on that threshold. It's still too early in the week for any cash cattle trade to have developed, and no trade is likely to take place before Thursday at the absolute earliest. Asking prices haven't been posted yet either. December live cattle closed $1.30 higher at $188.12, February live cattle closed $1.20 higher at $188.82 and April live cattle closed $0.95 higher at $189.50.
Tuesday's slaughter is estimated at 123,000 head -- 2,000 head less than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $1.10 ($323.96) and select down $1.41 ($294.80) with a movement of 142 loads (87.50 loads of choice, 36.05 loads of select, 4.18 loads of trim and 14.44 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. When trade does develop this week prices are likely going to be steady as although packers were able to get some cattle bought with time last week. Feedlots also sit in a secure position as their showlists are lighter this week.
FEEDER CATTLE:
The feeder cattle complex had a powerful day as the spot January contract closed above its 100-day moving average signaling substantial technical support. Now the market will likely be pressured right away at Wednesday's start to either support today's move or to quickly retreat. But so long as the live cattle complex trades higher, the market very likely could maintain its position above that threshold. November feeders closed $2.32 higher at $248.92, January feeders closed $1.80 higher at $246.05 and March feeders closed $1.22 higher at $244.87. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week feeder steers under 800 pounds sold steady to $3.00 lower, but steers over 800 pounds traded steady to $2.00 higher. Feeder heifers sold steady to $2.00 lower. Steer calves sold steady to $4.00 lower and heifer calves sold mostly steady. Feeder cattle supply over 600 pounds was 61%. The CME feeder cattle index 10/21/2024: up $0.39, $250.65.
LEAN HOGS:
The lean hog complex had a stellar day where the vast majority of the contracts closed higher as trader interest seems ample right now in the market. The afternoon carcass price did close slightly lower which could ease trader's ambitions slightly on Wednesday, but time will tell. One day of slightly lower price in the carcass won't undo the market's momentum, but if traders and packers alike notice that demand is cooling, the complex could see some pushback. December lean hogs closed $0.85 higher at $79.12, February lean hogs closed $0.55 higher at $82.80 and April lean hogs closed $0.30 higher at $86.22. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.89 with a weighted average price of $77.11 on 6,709 head. Pork cutouts totaled 308.96 loads with 269.41 loads of pork cuts and 39.55 loads of trim. Pork cutout values: down $0.97, $97.27. Tuesday's slaughter is estimated at 488,000 head -- 1,000 head more than a week ago and 6,000 head more than a year ago. The CME lean hog index 10/18/2024: up $0.27, $84.23.
WEDNESDAY'S HOG CALL: Steady. Packers will likely need to buy more hogs on Wednesday as although they were somewhat active in Tuesday's cash market, their total purchase wasn't many.
No comments:
Post a Comment