GENERAL COMMENTS:
The livestock complex was able to round out the day on a higher note, as traders were pleased to see stronger boxed beef prices, which helped turn both the live cattle and feeder cattle contracts higher ahead of the day's end. New showlists appear to be mixed -- higher in Texas, but lower in Nebraska, Colorado and Kansas. December corn is down 1 cent per bushel, and December soybean meal is down $1.10. The Dow Jones Industrial Average is up 304.14 points.
LIVE CATTLE:
The live cattle complex was able to scrape together enough support ahead of the day's end to close mildly higher Monday afternoon. December live cattle closed steady at $183.70, February live cattle closed $0.07 higher at $185.37, and April live cattle closed $0.22 higher at $186.75. More than anything, Monday's slight uptick before the bell closed seemed to be because traders found some fundamental support in the market's higher midday boxed beef prices, which, thankfully, was again found in Monday's closing box prices. Last week, prices trended lower, and while feedlot managers hope that prices hold steady and consumer demand shows favor to the beef cuts, there's a good chance that seasonally speaking, prices are pressured again this week. New showlists appear to be mixed -- higher in Texas, but lower in Nebraska, Colorado and Kansas.
Last week, Southern live cattle traded for mostly $187, which is $3 lower than the previous week's weighted average, and Northern dressed cattle traded for mostly $294, which is also $3 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 50,010 head. Of that, 83% (41,519 head) were committed to the nearby delivery, while the remaining 17% (8,391 head) were committed to the deferred delivery option.
Boxed beef prices closed higher: choice up $0.28 ($308.21) and select up $2.65 ($281.84) with a movement of 126 loads (84.39 loads of choice, 19.68 loads of select, 7.45 loads of trim and 14.06 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat lower. Given that packers sit with ample supplies of cattle committed to them, it's likely that prices will trade steady at best this week.
FEEDER CATTLE:
The feeder cattle complex was able to close slightly higher Monday afternoon, as the market inched higher once it saw the live cattle complex trading higher. But what was potentially the most impressive note throughout the day for the feeder cattle market was the continued demand in the countryside for feeders and calves. Prices were noted as sharply higher in numerous sale reports, as buyers are still needing more cattle for their pens. November feeders closed $0.72 higher at $246.15, January feeders closed $0.82 higher at $242.25 and March feeders closed $0.67 higher at $240.05. Unfortunately, even with the day's higher end, the spot January contract still closed below the market's 40- and 100-day moving averages, as technical support has been extremely hit or miss for the feeder cattle market here as of late. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week and at their mid-session point, feeder steers under 725 pounds were selling anywhere from $5 to $20 higher with heavier weights selling steady to $3 higher. Feeder heifers were trading steady to $10 higher. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 11/8/2024: down $0.03, $249.83.
LEAN HOGS:
Wide price swings in the belly continue to be a norm for the market right now, and once again, the afternoon carcass price was pulled lower, mostly because of the $11.18 decline in the belly. However, traders continue to support the market, and as long as demand improves later this week, they may be able to maintain their confidence. But given that the market is close to resistance thresholds, fundamental demand will become more important. December lean hogs closed $1.35 higher at $81.77, February lean hogs closed $1.10 higher at $85.92 and April lean hogs closed $0.72 higher at $89.97. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.85 with a weighted average price of $83.52 on 3,373 head. Pork cutouts totaled 278.70 loads with 241.67 loads of pork cuts and 37.03 loads of trim. Pork cutout values: down $0.92, $101.46. The CME lean hog index 11/7/2024: down $0.18, $90.43.
TUESDAY'S HOG CALL: Steady. Even though packers won't be thrilled to see the afternoon carcass price lower, it's likely that they're still going to need to be engaged in Tuesday's cash market, as they weren't very active in the cash market late last week.
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