Thursday Closing Livestock Market Update - Complex Closed Lower

GENERAL COMMENTS:

It was a disappointing day for the livestock complex as all three of the markets closed lower as pressure abound from nearly every angle. Heading into Friday's market, be on the lookout for the morning's export sales report. December corn is down 7 1/2 cents per bushel and December soybean meal is down $4.60. The Dow Jones Industrial Average is down 207.33 points

LIVE CATTLE:

The live cattle complex broke lower as the market found Thursday's pressure to simply be too much to withstand. Between boxed beef prices trading lower, to the cash cattle market trading cattle $2.00 to $3.00 lower, traders again found themselves below the 100-day moving average in the December contract. December live cattle closed $1.07 lower at $182.95, February live cattle closed $0.97 lower at $185.10 and April live cattle closed $0.75 lower at $186.92. The market expected that steady prices would be the best case scenario for the cash cattle market this week. But once traders saw prices developing anywhere from $2.00 to $3.00 lower, the lack of support with which the market's fundamentals offered was disheartening. Mid-afternoon, some Southern live sales began to be reported at $185, which is $2.00 lower than last week's weighted average. A few live sales were also noted in Nebraska at $185, which is $1.00 lower than last week's weighted average. For cattle left to sell, asking prices are firm at $187 to $189 in the South and at $292 plus in the North. On Wednesday afternoon there were some cattle traded in the South at $290, which is $3.00 lower than last week's weighted average. 

Thursday's slaughter is estimated at 125,000 head -- steady with a week ago and 3,000 head more than a year ago.

Boxed beef prices closed lower: choice down $3.14 ($303.80) and select down $2.00 ($276.66) with a movement of 212 loads (157.44 loads of choice, 25.60 loads of select, 10.55 loads of select, 18.88 loads of ground beef).

FRIDAY'S CATTLE CALL: Steady with the week's trend. Given that sales have now been reported in both regions, it's likely that any more trade that develops on Friday will only be clean up in nature and remain steady with the week's trend.

FEEDER CATTLE:

Once the feeder cattle complex saw that the live cattle contracts were going to close fully lower, traders decided that the safest plan of action was to follow in line with the live cattle complex. November feeders closed $1.15 higher at $247.62, January feeders closed $0.45 lower at $243.20 and March feeders closed $0.47 lower at $241.72. Earlier in the day traders were rallying the feeder cattle complex on the fact that corn prices were lower and demand in the countryside was still incredibly strong. The combination of a weaker live cattle complex mixed with lower fat cattle trade and softer boxed beef prices sucked the wind right out of the feeder cattle market's sail. At Torrington Livestock Auction in Torrington, Wyoming compared to last week steer and heifer calves traded $4.00 to $8.00 higher with a few instances where prices topped out at $10.00 higher on spring born calves with fall shots. Feeder cattle supply over 600 pounds was 28%. The CME feeder cattle index 11/13/2024: up $2.02, $251.04.

LEAN HOGS:

The lean hog complex endured a stressful day where cash prices, pork cutout values and the board all traded lower. December lean hogs closed $1.77 lower at $80.10, February lean hogs closed $2.25 lower at $83.77 and April lean hogs closed $2.02 lower at $88.12. The wild losses in the belly didn't get any easier for the market to stomach as this afternoon's belly price dropped $20.78, which obviously had a significant effect on the carcass price. The hog complex is hopeful that Friday's export report may lend some support because this week's trade domestically has been tough. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.80 with a weighted average price of $86.14 on 2,686 head. Pork cutouts totaled 284.24 loads with 258.51 loads of pork cuts and 25.72 loads of trim. Pork cutout values: down $3.19, $94.07. Thursday's slaughter is estimated at 488,000 head -- 1,000 head more than a week and year ago. The CME lean hog index 11/12/2024: up $0.06, $89.94.

FRIDAY'S HOG CALL: Lower. At this point it's likely that packers have all but fulfilled their needs in the cash market.