GENERAL COMMENTS:
It was a lackluster day for the livestock complex as traders showed the contracts mixed interest. Bids of $185 live and $290 dressed were offered throughout the day, but the cash cattle market sat mostly quiet. December corn is down 1 3/4 cents per bushel and December soybean meal is down $1.30. The Dow Jones Industrial Average is up 147.01 points.
LIVE CATTLE:
The live cattle complex struggled to find enough strength in the market's immediate fundamentals to justify trading the nearby contracts higher, but thankfully the deferred contracts were able to close mildly stronger. December live cattle closed $0.37 lower at $184.02, February live cattle closed $0.05 lower at $186.07 and April lean hogs closed $0.02 lower at $187.67. More than anything the nearby contracts seem to be stuck in somewhat of a holding pattern as traders wait to see what cash cattle prices do later this week. They hope to find stronger boxed beef prices as well. There were bids of $185 live and $290 dressed offered throughout the day, but feedlot managers didn't see the need in rushing to those low offers. Asking prices are firm in the South at $188 to $189 but remain unestablished still in the North.
Wednesday's slaughter is estimated at 125,000 head -- steady with a week ago and 1,000 head more than a year ago.
Boxed beef prices closed lower: choice down $1.33 ($306.94) and select down $1.26 ($278.66) with a movement of 134 loads (78.24 loads of choice, 21.12 loads of select, 10.43 loads of trim and 23.89 loads of ground beef).
THURDAY'S CATTLE CALL: Steady. It's unlikely that packers will need cattle desperately enough to where cash prices will trade steady this week nor do I believe that feedlot managers will feel inclined to sell cattle for sharply lower prices either.
FEEDER CATTLE:
Even though some of the live cattle contracts pulled back ahead of Wednesday's close, all the feeder cattle contracts besides the November 2024 feeder cattle contract were able to end the higher. November feeders closed $0.35 lower at $246.47, January feeders closed $0.07 higher at $243.65 and March feeders closed $0.47 stronger at $242.20. Wednesday's higher end allowed the spot January contract to again further itself from the market's 100-day moving average which signals technical strength and with the markets strong showing in the countryside -- traders are currently being met with ample support and demand. At Philip Livestock Auction in Philip, South Dakota compared to last week feeder steers under 450 pounds sold steady, steers weighing 450 to 500 pounds sold steady to $3.00 higher, steers weighing 500 to 550 pounds traded $4.00 to $6.00 stronger, and steers weighing 550 to 600 pounds sold steady to $3.00 better. Feeder heifers under 400 pounds sold steady, heifers weighing 400 to 450 pounds sold $5.00 to $8.00 stronger, heifers weighing 450 to 550 pounds sold $8.00 to $10.00 higher, and heifers weighing 500 to 600 pounds sold $7.00 higher. Feeder cattle supply over 600 pounds was 8%. The CME feeder cattle index 11/12/2024: down $0.062, $249.02.
LEAN HOGS:
There's no way better to describe Wednesday's trade throughout the lean hog complex than to simply say that it was a mixed bad. Traders showed mixed interest in the market, the cash hog market saw tremendous packer interest, but again, pork cutout values rounded out the day lower. December lean hogs closed $0.47 lower at $81.87, February lean hogs closed $0.30 lower at $86.02, and April lean hogs closed $0.02 higher at $90.15. The drop in Wednesday afternoon's carcass price wasn't because of a big dip in the belly again, but rather because of a $3.27 decline in the picnic and a $2.14 drop in the rib. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $4.15 with a weighted average price of $88.94 on 13,040 head. Pork cutouts total 297.26 loads with 244.79 loads of pork cuts and 52.47 loads of trim. Pork cutout values: down $0.42, $97.26. Wednesday's slaughter is estimated at 489,000 head -- 1,000 head more than a week ago and 2,000 head more than a year ago. The CME lean hog index 11/11/2024: down $0.14, $89.88.
THURDSAY'S HOG CALL: Lower. Given that Wednesday's cash hog trade was sizeable, it's highly unlikely that packers will do much more buying throughout the later part of the week.
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