GENERAL COMMENTS:
Most would agree that Friday's close comes as a
sigh of relief, as this week's market has been a struggle and it's nice
to have it behind us. As crazy as it may sound, even a $5.00 cash cattle
rally wasn't enough to take most live cattle contracts into a positive
close. Up, then down, down and down again went this week's market.
Unable to rally on various points, the livestock sector closed lower.
Hog prices are down $0.81 on the National Direct Friday Afternoon Hog
Report, with a weighted average of $49.19. December corn is down 4 cents
per bushel and December soybean meal is up $0.80. The Dow Jones
Industrial Average is up 360.08 points and NASDAQ is up 106.34 points.
LIVE CATTLE:
All live cattle contracts, except October,
closed lower. October live cattle closed at $107.35, up $0.55 and
December live cattle closed at $110.77, down $0.05. Though Friday's
close was disappointing given the strong cash cattle trade, compared to
last week October live cattle closed $2.33 higher and December live
cattle closed 20 cents higher than last week's closing. One of the
market's biggest challenges was the lack of trader interest and the
inability to generate any plays. Hopefully next week will generate more
interest as the market will be in its second week of the month. Live
cattle Equivalent index: down $0.11 at $136.18.
Cash cattle traded anywhere from $3to $4 higher
than last week's weighted average in the South at $107 and most dressed
cattle traded for $170 in the north, which was a solid $5 higher than
last week's weighted average.
Friday afternoon boxed beef prices are lower:
choice down $0.10 ($211.96) and select down $0.29 ($186.92) with a light
offering of 100 total loads (47.56 loads of choice cuts, 18.34 loads of
select cuts, 13.20 loads of trim and 21.37 loads of ground beef). This
week's kill is estimated lower with one plant cleaning coolers.
MONDAY'S CASH CATTLE CALL: $1 lower. Given the
fact that packer's margins are narrowing and cash cattle hardly ever
trade on Mondays, if any cash cattle are bid at all, it will be for
lower prices.
FEEDER CATTLE:
November feeder cattle closed $0.72 lower at
$141.37. Compared to last week's closing, October feeder cattle closed
$2.35 lower and November cattle closed $1.60 lower. Feeling the same
neglect that live cattle contracts felt, feeder cattle contracts
couldn't gain any interest.
LEAN HOGS:
Lean hog contracts closed mixed with deferred
contracts showing gains of 2 to 32 cents, while nearby contracts closed
anywhere from 2 to 85 cents lower. Compared to last week's closing,
October lean hogs were down $2.88, and December lean hog were down
$2.60. Next week could be the spark of interest that the lean hog sector
needs with plans that China will be discussing more with the U.S. about
potential trade agreements. Pork cutout: down $0.19 at $75.17. Lean hog
equivalent index: down $0.20 at $79.90.
MONDAY'S CASH HOG CALL: $1 lower. With a split
futures board and no indication of how trade talk will go next week,
Monday could follow in Friday's shadow very easily.
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