GENERAL COMMENTS:
It was a rallying day for the livestock complex as by Wednesday's end all three of the market closed higher thanks to the added support of the equity market's strength. No cash cattle sales have been noted yet, but packer demand should improve on Thursday. December corn is up 7 3/4 cents per bushel and December soybean meal is down $1.10. The Dow Jones Industrial Average is up 1,508.05 points.
LIVE CATTLE:
It was hard not for the live cattle complex to rally throughout the day as the market saw big gains in the equity markets and consequently traded powerfully throughout all of Wednesday's trade. December live cattle closed $0.62 higher at $185.40, February live cattle closed $0.77 higher at $186.72 and April live cattle closed $0.80 higher at $187.80. It will be interesting to see if today's higher mark serves as another short-term bottom for the markets or if traders will again resume the market's downward Thursday morning. At this point, no cash cattle sales have developed, but asking prices are noted in the South at $190 to $192 but are not yet established in the North.
Wednesday's slaughter is estimated at 125,000 head -- 1,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed lower: choice down $1.62 ($315.59) and select down $2.04 ($283.20) with a movement of 131 loads (69.81 loads of choice, 24.91 loads of select, 9.75 loads of trim and 26.22 loads of ground beef).
THURSDAY'S CATTLE CALL: Lower. With packers able to buy some cattle with the deferred delivery option last week, that likely means that this week's trade will be lower.
FEEDER CATTLE:
Even though the corn complex closed $0.06 to $0.07 higher, the feeder cattle market powered through the day rallying substantially as the complex took the support from the live cattle market and charged onward. November feeders closed $1.55 higher at $247.70, January feeders closed $1.67 higher at $244.02 and March feeders closed $1.25 higher at $241.75. The spot January contract was able to close slightly above the market's 100-day moving average, which signals bullishness, but first thing Thursday morning traders are going to be pressured to either cave and fall back below that threshold or continue with the recent change in direction. At Philip Livestock Auction in Philip, South Dakota compared to last week feeder steers weighing 400 to 450 pounds sold steady to $3.00 higher, steers weighing 450 to 550 pounds sold steady, and steers weighing 500 to 700 pounds traded steady to $2.00 higher. Feeder heifers weighing 400 to 550 pounds sold $2.00 to $4.00 higher, heifers weighing 500 to 600 pounds sold $2.00 to $3.00 lower and heifers weighing 800 to 850 pounds sold $2.00 higher. Feeder cattle supply over 600 pounds was 29%. The CME feeder cattle index 11/5/2024: down $0.01, $250.72.
LEAN HOGS:
The lean hog complex originally was trading lower at the day's start as the uptick in the US dollar concerned traders about the market's ability to export into countries like Mexico. But as the day traded on, the continued support from US consumers helped alleviate some of the other pressures and by the day's end, the market closed higher. December lean hogs closed $1.00 higher at $82.12, February lean hogs closed $0.65 higher at $85.15 and April lean hogs closed $0.62 higher at $88.72. Thursday's export report will again be a big-hitting line item for the market as demand remains its strongest driving force currently. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $0.65 with a weighted average price of $82.72 on 4,265 head. Pork cutouts total 266.66 loads with 234.71 loads of pork cuts and 31.95 loads of trim. Pork cutout values: up $0.72, $102.15. Wednesday's slaughter is estimated at 488,000 head -- steady with a week ago and 2,000 head more than a year ago. The CME lean hog index 11/4/2024: up $0.41, $89.79.
THURSDAY'S HOG CALL: Lower. Given that packers were aggressive in the cash market earlier this week it's likely that they show the complex less attention on Thursday and Friday as their needs are likely filled.
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