GENERAL COMMENTS:
It was a mixed day for the livestock complex as the cattle contracts plummeted upon seeing the Dow Jones trade 300 to 400 points lower throughout the day, but the lean hog complex wasn't fazed and continued to trade higher through closing. Still no cash cattle trade has developed. December corn is up 2 1/2 cents per bushel and December soybean meal is down $2.70. The Dow Jones Industrial Average is down 409.94 points.
LIVE CATTLE:
It comes as no surprise that with the equity markets falling the live cattle complex also followed suit. Throughout the day the Dow Jones traded anywhere from 300 to 400 points lower which sucked all the energy and momentum out of the live cattle market's sail. Earlier in the day the market was trading confidently and even broke out of its current trading range and took on the market's long-term resistance at $188.50 in the spot December contract, but traders quickly pulled the market lower once external pressures began to build. December live cattle closed $0.25 lower at $187.87, February live cattle closed $0.20 lower at $188.62 and April live cattle closed $0.22 lower at $189.27. Still no cash cattle trade has developed and there's a chance the week's trade could be delayed until after Friday's Cattle on Feed report. Asking prices are noted in the South at $190 plus but remain unestablished still in the North.
Wednesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week ago and steady with a year ago.
Boxed beef prices closed mixed: choice down $2.55 ($321.41) and select up $0.97 ($295.77) with a movement of 136 loads (84.49 loads of choice, 25.84 loads of select, 12.24 loads of trim and 13.44 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Even though the futures market traded lower throughout the day, I don't think feedlot managers will be willing to trade cattle this week for anything less than steady money.
FEEDER CATTLE:
The feeder cattle market followed the live cattle complex's retreat but pushed its contracts down more drastically as the contracts closed anywhere from $1.00 to $2.00 lower. Consequently, the spot January contract did close below its 100-day moving average once again. November feeders closed $1.70 lower at $247.22, January feeders closed $2.22 lower at $243.82 and March feeders closed $2.42 lower at $242.45. At Tri-State Livestock Auction in McCook, Nebraska compared to last week steer calves sold $4.00 to $6.00 lower and heifer calves traded $3.00 to $7.00 lower. Sharp declines were noticed on any steers or heifers that hadn't been preconditioned. Buyers were drastically more interested in buying cattle that had had fall vaccination and respiratory shots as calves have been more prone to being sick this fall with the increase in dust from the lack of moisture. The CME feeder cattle index 10/22/2024: up $0.06, $250.71.
LEAN HOGS:
It was impressive that the lean hog complex was able to defend its higher position throughout the day despite the fact that external equity pressures were significant. And to be clear, Wednesday's higher close wasn't done modestly as the $1.05 jump in the spot December contract was a new all-time high for the contract. Thankfully the continued stable support of stronger pork cutout values is helping traders continue with the market's advancement despite the recent weakness seen in the equity sector. December lean hogs closed $1.05 higher at $80.17, February lean hogs closed $0.60 higher at $83.40 and April lean hogs closed $0.30 higher at $86.52. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.73 with a weighted average price of $77.84 on 2,539 head. Pork cutouts totaled 305.87 loads with 271.76 loads of pork cuts and 34.11 loads of trim. Pork cutout values: up $0.95, $98.22. Wednesday's slaughter is estimated at 489,000 head -- 3,000 head more than a week and a year ago. The CME lean hog index 10/21/2024: $0.11, $84.34.
THURSDAY'S HOG CALL: Steady. It's likely that packers will again need to be somewhat aggressive in Thursday's cash market to secure enough supply to keep up with demand.
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