Wednesday, November 6, 2024

Wednesday Midday Livestock Market Summary - Support from the Equity Market Drives Contracts Higher

GENERAL COMMENTS:

The livestock complex is trading mostly higher into Wednesday's noon hour as the complex is thriving thanks to the added support of the equity markets surge. No bids are currently on the table, but asking prices are noted in the South at $190 to $192. December corn is up 6 1/4 cents per bushel and December soybean meal is down $2.30. The Dow Jones Industrial Average is up 1,353.24 points.

LIVE CATTLE:

As the live cattle complex watches the equity market thrive and the Dow Jones trading consistently around 1,300 points higher this morning -- traders are back to mildly supporting the live cattle complex even though the market was pressured earlier this week. December live cattle are up $0.62 at $185.40, February live cattle are up $0.85 at $186.80 and April live cattle are up $0.65 at $187.65. Still no cash cattle trade has developed, but asking prices are now being noted in parts of Kansas at $190 to $192. It is expected that the cash cattle market will trade slightly lower this week as packers have been able to buy up inventory over the last couple of weeks, which lessens their need to be as aggressive in the cash sector this week.

Boxed beef prices are lower: choice down $0.36 ($316.85) and select up $1.49 ($283.75) with a movement of 86 loads (42.83 loads of choice, 14.77 loads of select, 4.89 loads of trim and 23.43 loads of ground beef).

FEEDER CATTLE:

Earlier today the feeder cattle market was trading sharply higher when corn prices were trading lower, but now that the nearby corn contracts are trading $0.05 to $0.06 higher the market is trading in a moderately higher manner. November feeders are up $1.37 at $247.52, January feeders are up $1.35 at $243.70 and March feeders are up $0.77 at $241.27. But with the live cattle market's higher trend, the feeder cattle market should be able to maintain these higher levels through the day's end as technical support is ample.

LEAN HOGS:

The lean hog complex is trading mixed into Wednesday's noon hour as the market tries to grasp what is next to come with another Trump Presidency. Earlier today the market seemed anxious as the U.S. dollar showed some strength which could affect export opportunities later down the road. And with Mexico being one of the largest buyers of U.S. pork, keeping that relationship open and workable for sales remains important for the hog sector. But thankfully the market has again turned higher as it's hard for the market not to thrive when the equity sector is rallying as aggressively as it is. December lean hogs are up $0.40 at $81.52, February lean hogs are up $0.55 at $85.07 and April lean hogs are up $0.25 at $88.35.

The projected lean hog index for 11/5/2024 is up $0.45 at $90.24, and the actual index for 11/4/2024 is up $0.41 at $89.79. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.91 with a weighted average price of $84.30, ranging from $78.00 to $87.00 on 2,004 head and a five-day rolling average of $82.82. Pork cutouts total 146.96 loads with 129.63 loads of pork cuts and 17.33 loads of trim. Pork cutout values: up $1.75, $103.18.




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