GENERAL COMMENTS:
It was a successful day for the livestock complex as traders remained committed to supporting the markets through Tuesday's end. A handful of cattle sold at steady prices with last week's weighted average, but largely the cash market still hasn't established a trend for this week. December corn is down 1 1/2 cents per bushel and December soybean meal is down $2.20. The Dow Jones Industrial Average is down 382.15 points.
LIVE CATTLE:
The live cattle complex was able to round out Tuesday on a higher note as traders found it supportive that boxed beef prices were higher at noon which ultimately helped propel the market higher through the remainder of the day. December live cattle closed $0.70 higher at $184.40, February live cattle closed $0.75 higher at $186.12, and April live cattle closed $0.95 higher at $187.70. Today's higher close did enable the spot December contract to close above its 100-day moving average, which remains a threshold the market continues to dance around. A few cash cattle sales were reported at mostly steady prices with last week's trade, but by no means has a trend been established for this week's market. Asking prices are noted in the South at $188 to $189 but remain unestablished still in the North.
Tuesday's slaughter is estimated at 121,000 head -- 3,000 head less than a week ago and 6,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.06 ($308.27) and select down $1.92 ($279.92) with a movement of 123 loads (69.93 loads of choice, 37.37 loads of select, zero loads of trim and 16.46 loads of ground beef).
WEDNEDSAY'S CATTLE CALL: Steady. Given that packers sit with a plethora of cattle committed to them, it's assumed prices will trade steady at best this week.
FEEDER CATTLE:
Upon seeing the live cattle contracts turn higher and deeming it was safe to trade higher, the feeder cattle market also changed its demeanor and successfully closed higher. November feeders closed $0.67 higher at $246.82, January feeders closed $1.32 higher at $243.57, and March feeders closed $1.67 higher at $241.72. The spot January contract was able to close above both its 100-day and 40-day moving averages, but the market will likely be pressured to support that decision through the remainder of the week. From a fundamental standpoint, the market remains well supported as buyer demand has been exceptional already this week in sales across the country. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week feeder steers were trading $2.00 to $4.00 higher except the 600 to 700 pound steers which traded $10.00 higher. Feeder heifers sold steady to $2.00 higher and steer and heifer calves old $15.00 to $20.00 higher. Feeder cattle supply over 600 pounds was 54%. The CME Feeder Cattle Index 11/11/2024: down $0.19, $249.64.
LEAN HOGS:
With traders fully onboard to continue to support the lean hog complex despite whatever the market's fundamentals seem to do -- traders elected to push the contracts higher through Tuesday's end. December lean hogs closed $0.57 higher at $82.35, February lean hogs closed $0.40 higher at $86.32, and April lean hogs closed $0.15 higher at $90.12. The spot December contract is still below resistance levels, but the February contract inched beyond current resistance thresholds as traders seem more than confident in their decision to continue to support the sector. Thankfully cash prices were slightly higher Tuesday afternoon which could be thought of as a small token of fundamental support. But yet again, the afternoon carcass price fell lower as the belly's sharp descent pulled the average back. December lean hogs closed $0.57 higher at $82.35, February lean hogs closed $0.40 higher at $86.32, and April lean hogs closed $0.15 higher at $90.12. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.27 with a weighted average price of $84.79 on 5,793 head. Pork cutouts totaled 379.60 loads with 340.95 loads of pork cuts and 38.65 loads of trim. Pork cutout values: down $3.78, $97.68. Tuesday's slaughter is estimated at 489,000 head -- 1,000 head more than a week ago and 15,000 head more than a year ago. The CME Lean Hog Index 11/8/2024: down $0.41, $90.02.
WEDNESDAY'S HOG CALL: Steady. Packers will likely need to be aggressive at least one more day in this week's cash market; but given that pork cutout values are softer this week, it's likely prices will remain steady.
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