GENERAL COMMENTS:
Overall, the livestock complex closed moderately lower as traders let the contracts drift lower while they closely watched the equity markets trade lower and are likely taking a cautious position ahead of Tuesday's Presidential election. No cash cattle trade developed throughout the day. December corn is up 2 cents per bushel and December soybean meal is up $4.30. The Dow Jones Industrial Average is down 257.59 points.
LIVE CATTLE:
It was another downward spiraling day for the live cattle complex as the market continues to correct technically. With open interest at its highest point since 2019, and money managed funds at their highest point in over a year, the futures complex sits with plenty of downside potential ahead of it as traders try to manage the technical risk side of the market along with keep in perspective how strong the market's fundamentals remain. At this point, time will only be able to give the answers we long for such as: how much more of a correction will traders deem necessary. December live cattle closed $0.85 lower at $185.07, February live cattle closed $0.97 lower at $185.92 and April live cattle closed $0.82 lower at $186.87. New showlists appear to be mixed, somewhat higher in Nebraska/Colorado, higher in Kansas, but somewhat lower in Texas. Monday's slaughter is estimated at 120,000 head -- 1,000 head less than a week ago and 2,000 head less than a year ago.
Last week Southern live cattle traded at mostly $190 which is fully steady with the previous week's weighted average, but Northern dressed cattle traded at mostly $296 which is $3.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 87,606 head. Of that 80% (70,121 head) were purchased for the nearby delivery, while the remaining 20% (17,485 head) were purchased for the deferred delivery.
Boxed beef prices closed higher: choice up $0.57 ($316.91) and select up $2.13 ($287.16) with a movement of 103 loads (62.68 loads of choice, 20.70 loads of select, 7.33 loads of trim and 12.66 loads of ground beef).
TUESDAY'S CATTLE CALL: Lower. With packers able to buy plenty of cattle last week, it's likely that the cash market will trade lower this week.
FEEDER CATTLE:
Even though Friday's market allowed the feeder cattle complex to end the week on a stronger note, seeing the live cattle complex trade lower yet again on Monday pressured feeders into a lower trend as well. November feeders closed $0.52 lower at $246.35, January feeders closed $0.77 lower at $242.42 and March feeders closed $0.90 lower at $240.25. The January contract continues to chop sideways in between the market's 100-day and 40-day moving averages and will likely remain with that trend given that it's the Presidential election week. At Joplin Regional Stockyards in Carthage, Missouri compared to last week steers under 625 pounds sold $10.00 lower to $2.00 higher. Heavier weighted steers sold $3.00 lower to $6.00 higher. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 11/1/2024: up $0.02, $251.00.
LEAN HOGS:
The lean hog complex wasn't able to sneak through Monday's trade without enduring some of the same pressure which the equity markets and cattle contracts endured. Most of the market's nearby contracts closed slightly lower while the deferred months were able to maintain their higher position. Thankfully the afternoon's carcass price was able to close higher yet again -- showing continued consumer support -- but that was mostly contributed to the loin's $4.33 gain. December lean hogs closed $0.85 lower at $83.22, February lean hogs closed $0.70 lower at $85.32 and April lean hogs closed $0.30 lower at $88.60. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.56 with a weighted average price of $77.50 on 2,159 head. Pork cutouts total 272.80 loads with 214.25 loads of pork cuts and 58.55 loads of trim. Pork cutout values: up $0.04, $104.01. Monday's slaughter is estimated at 489,000 head -- 1,000 head more than a week ago and 1,000 head less than a year ago. The CME lean hog index 10/31/2024: up $0.63, $88.56.
TUESDAY'S HOG CALL: Steady/somewhat higher. Packers aren't normally aggressive in the cash market on Mondays which likely means that they're somewhat short bought and could likely be aggressive again on Tuesday as they secure more inventory.
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