GENERAL COMMENTS:
It was a mixed day for the livestock complex as although the futures contracts closed higher, the market saw some pressure from its fundamentals as both pork cutout values and boxed beef prices closed lower. Still no cash cattle trade has developed but prices are expected to be lower this week. December corn is up 1 1/4 cents per bushel and December soybean meal is up $0.10. The Dow Jones Industrial Average is down 0.59 points.
Thursday's export report shared that beef net sales of 8,00 mt for 2024 -- a marketing year low -- were down 43% from the previous week and 45% from the prior 4-week average. The three largest buyers were South Korea (2,100 mt), Japan (2,000 mt) and Canada (1,200 mt). Pork net sales of 14,700 mt for 2024 -- a marketing year low -- were down noticeably from the previous week and the prior 4-week average. The three largest buyers were Japan (2,300 mt), South Korea (2,100 mt) and Panama (200 mt).
LIVE CATTLE:
The live cattle complex traded higher throughout the majority of the day, seeming to still be encouraged by Wednesday's strong rally in the Dow Jones. December live cattle closed $0.42 higher at $185.82, February live cattle closed $0.70 higher at $187.42 and April live cattle closed $0.45 higher at $188.25. It's also likely that the cattle complex was pleased with the Fed's decision to decline interest rates by a quarter of a percentage point as most producers are working with some type of lending situation. What was odd; however, about Thursday's trade was the sharp decline in boxed beef prices. Boxed beef prices have slowly been enduring some mixed pressure this week, but today's close was sharply lower in both the choice and select cuts. Bids of $186 live and $292 dressed were offered throughout the day in Nebraska, but no cattle traded. Asking prices remain firm at $190 to $192 in the South and are still unestablished in the North.
Thursday's slaughter is estimated at 125,000 head – 4,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed lower: choice down $6.13 ($309.46) and select down $3.48 ($279.72) with a movement of 179 loads (104.41 loads of choice, 36.35 loads of select, 6.66 loads of trim and 31.67 loads of ground beef).
FRIDAY'S CATTLE CALL: Lower. With today's sharp decline in boxed beef prices and packers having plenty of cattle around them through their recent purchases in the cash market over the last couple of weeks, cash prices will likely be lower this week.
FEEDER CATTLE:
The feeder cattle complex traded higher throughout the day as the market continues to be well supported by buyer demand in the countryside and was given enough technical support as the live cattle contracts traded higher. November feeders closed $0.05 lower at $247.65, January feeders closed $0.30 higher at $244.32 and March feeders closed $0.50 higher at $242.55. It was also positive to see that spot January contract again closed above its 100-day moving average, which signals better technical support. At La Junta Livestock Commission in La Junta, Colorado compared to last week feeder steers under 400 pounds sold sharply lower, but steers weighing over 400 pounds sold anywhere from $1.00 to $9.00 higher. Feeder heifers weighing 250 to 400 pounds sold $20.00 to $25.00 higher, but heifers weighing 400 to 600 pounds sold $1.00 to $4.00 lower. Heifers over 600 pounds sold $1.00 to $6.00 higher. Feeder cattle supply over 600 pounds was 16%. The CME lean hog index 11/6/2024: down $0.08, $249.92.
LEAN HOGS:
Although the market was pressured earlier today by the note of weaker exports, by the day's close the market again found support and secured a higher end ahead of closing. December lean hogs closed $0.92 lower at $81.20, February lean hogs closed $0.15 higher at $85.30 and April lean hogs closed $0.45 higher at $89.17. Today's higher end throughout the futures complex wasn't because of continued consumer support as this afternoon's carcass price closed sharply lower thanks to the dramatic $17.05 decline in the belly and the $4.99 drop in the ham. More than anything today's higher end seems to be traders re-gathering themselves after enduring some nervousness around the election earlier this week. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.31 with a weighted average price of $85.03 on 1,575 head. Pork cutouts totaled 326.03 loads with 283.82 loads of pork cuts and 42.21 loads of trim. Pork cutout values: down $4.19, $97.96. Thursday's slaughter is estimated at 481,000 head -- 5,000 head less than a year ago and 13,000 head more than a year ago. The CME lean hog index 11/5/2024: up $0.45, $90.24.
FRIDAY'S HOG CALL: Lower. With the day's afternoon carcass price dropping dramatically, it's unlikely that packers will be apt to support the cash market on Friday.
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