Friday, December 6, 2019

Friday Closing Livestock Market Summary - Livestock Contracts Close the Week Mostly Higher

GENERAL COMMENTS:
The board was chipped away on livestock prices this week, but having closed higher on Friday leaves some positivity. Hog prices dipped lower on the National Direct Afternoon Hog Report, down $0.08 with a weighted average $46.59. March corn is steady and January soybean meal is down $2.20. The Dow Jones Industrial Average is up 337.27 points and NASDAQ is up 85.83 points.
From Friday to Friday, livestock futures scored the following changes: December live cattle are down $1.00, February live cattle are down $1.22; January feeders are down $0.72, March feeder are down $1.35; December lean hogs are down $0.90, February lean hogs are down $0.63.

LIVE CATTLE:
Live cattle contracts closed higher and cash cattle prices have yet to rally like assumed. December live cattle closed $0.27 higher at $120.00, February live cattle closed $0.37 higher at $124.97 and April live cattle closed $0.20 higher at $125.35. Even though packers need cattle, their patient spirit and no-worry attitude leaves one to believe that $1.00 higher in South and potentially $2.00 higher in the North (depending on what happens Friday afternoon) is all gas in the tank for this week. Given that this week's boxed beef prices whittled away steadily, packers are being more cautious. Light trade has developed Friday afternoon at $188 in Nebraska, $1.00 higher than last week's weighted average. It may be safe to assume that business is wrapped up in the South, but there are still cattle to be sold in the North.

Boxed beef prices are lower: choice down $1.04 ($224.56) and select down $0.82 ($207.30) with a total movement of 132 loads (77.72 loads of choice, 22.67 loads of select, 10.07 loads of trim and 21.31 loads of ground beef). Friday's slaughter is estimated at 121,000 head, steady with a year ago.

MONDAY'S CASH CATTLE CALL: Steady. Cash cattle obviously won't trade Monday but how this week's trade wraps up will largely set the tone for next week.

FEEDER CATTLE:
Able to close the week on a positive note, feeder cattle contracts closed higher. Feeder cattle contracts could be in for a bit of a ride until countryside demand helps drive market clarity once again. A sale here and there are noting strong prices, but there are equally as many sales noting lower prices. Simply due to the fact that pens are full, calves are a dime a dozen and no one is overly thrilled with the idea of feeding calves through the winter, prices may be rough until demand for calves is found again.

On an estimated run of 2,315 head compared to two weeks ago, steers at Valentine Livestock Auction in Valentine, Nebraska, weighing 450 to 550 pounds sold for $4.00 to $5.00 higher and heifers were too lightly tested to determine a trend. Demand was notably good, buyers filled the seats and the warmer weather helped keep morals high and buyers interested. The CME feeder cattle index 12/5/19: not available at this time.

LEAN HOGS:
Lean hog contracts closed lower in the spot and closed nearby contracts, but other than that closed mildly higher. December lean hogs are down $0.45 at $61.12, February lean hogs are down $0.02 at $67.55 and April lean hogs are up $0.20 at $73.70. Pork cutouts totaled 289.13 loads with 255.97 loads of pork cuts and 33.15 loads of trim. Pork cutout values: up $0.72 at $82.08. Friday's hog slaughter is estimated at 329,000 head, 136,000 head more than a year ago. The CME lean hog index 12/04/19: $58.34, up $0.14.


MONDAY'S CASH HOG CALL: Steady. This week's cash market rallied significantly for the hog market. Given the time of year it is -- and the market uncertainty with export potential -- it would be tough to carry such a vigorous speed all the way through next week. 


#completecalfcare

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