GENERAL COMMENTS:
Cattle markets secured higher prices at Wednesday's closing bell while the lean hog market still wonders lower. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.61 with a weighted average of $55.24. December corn is down 1/4 cent per bushel and December soybean meal is up $1.70. The Dow Jones Industrial Average is up 45.85 points and NASDAQ is up 15.49 points.
LIVE CATTLE:
The live cattle market posted significant gains Wednesday ranging mostly from $0.90 to $1.55. December live cattle closed $1.55 higher at $115.25 and February live cattle closed $1.32 higher at $120.42 -- just $1.65 lower than the complex's peak month of April 2020. The board's strength comes at an opportunist time when fat cattle trade has yet to really set a feel for the week, and if the same behavior is established on Thursday and Friday higher prices could certainly be had. A few scattered deals have been reported in eastern Nebraska at $109, about $1.00 lower than last week's weighted average, and in Kansas also at $109, $1.00 higher than last week's weighted average. Most asking prices remain firm around $110 plus in the South, and $178 in the North.
Closing boxed beef prices are up: choice up $2.35 ($223.28) and select up $0.86 ($198.94) with boxed beef movement totaling 109 loads (45.85 loads of choice, 34.87 loads of select, 8.24 loads of trim and 20.42 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: $1.00 higher. Despite Wednesday's anxiousness to sell cattle early in the North for $1.00 lower than last week's weighted average, with Wednesday's strong close on the board and shiny boxed beef prices cattlemen should be able to rally higher prices. There may be some fear and animosity knowing that on Friday another Cattle on Feed report comes out, but if the report stands true to projections it should have no amounting effect on this week's market.
FEEDER CATTLE:
Feeder cattle futures closed all with gains higher than $1.00. November feeder cattle closed $1.25 higher at $144.75 and January feeders closed $1.40 higher at $141.20. On an estimated run of 5,780 head of feeder calves (down 981 head from the previous week), Philip Livestock Auction in South Dakota called feeder steers under 450 pounds steady, 450 to 500 pound feeder steers $2.00 to $4.00 higher, 500 to 700 pound steers steady to $2.00 lower and feeder heifers 400 to 950 pounds steady. Demand was good for long strings of calves and load lots. CME feeder cattle index 10/22/19: not available at time of publishing.
LEAN HOGS:
The lean hog market didn't fair as well as other livestock markets did. The December lean hog market is the only market that closed positively, up $0.32 at $65.82; all other markets closed lower. The beginning months of 2020 took the biggest losses - ranging anywhere from $1.17 to $1.50 lower.
Pork cutouts totaled 331.91 loads with 265.69 loads of pork cuts and 66.22 loads of trim. Pork cutout values: down $1.06 at $75.04. CME lean hog index 10/21/19: $65.47, down $0.06.
THURSDAY'S CASH HOG CALL: $1.00 lower. With packer's losing some margin last week, and still no trade agreement, pressure is going to keep suppressing the lean hog complex.
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