GENERAL COMMENTS:
The surge in oil prices helped fuel positivity throughout the marketplace and ensured that cattle contracts closed higher. Feedlots are thankful to see the board's encouraged spirit as they patiently wait to move this week's cash cattle market higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.45 with a weighted average of $57.87 on 8,290 head. March corn is down 3/4 cent per bushel and December soybean meal is up $3.40. The Dow Jones Industrial Average is up 454.57 points and NASDAQ is up 156.15 points.
LIVE CATTLE:
Even though cash cattle have yet to trade, feedlots are loving how this week is shaping up. With continued support from the board and with boxed beef prices still scaling higher, this week's cash cattle market could easily trade $2.00 to $4.00 stronger, as long as feedlots work together in marketing their showlists this week. Tuesday's boxed beef close was impressive. not only because both choice and select cuts closed higher again, but because packers continue to move ample amounts of product. Tuesday's boxed beef movement of 161 is encouraging that packers intend to keep chain speed elevated and consequently will need more cattle in the days and weeks to come. December live cattle closed $1.17 higher at $111.17, February live cattle closed $1.05 higher at $113.95 and April live cattle closed $0.60 higher at $117.15. Tuesday's slaughter is estimated at 122,000 head, 1,000 head more than a week ago and 13,000 head more than a year ago.
Boxed beef prices closed higher: choice up $2.70 ($244.30) and select up $2.23 ($219.71) with a movement of 161 loads (97.10 loads of choice, 20.89 loads of select, 11.71 loads of trim and 31.54 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Higher. So long as feedlots work together and collectively push for higher prices, the market could easily see an advancement of $2.00 to $4.00 stronger given the other supporting factors within the market. Pinpointing when that trade will develop is slightly difficult, but bids could develop as early as Wednesday morning after the online auction.
FEEDER CATTLE:
The corn market scaled lower into Tuesday's close, which continued to allow the feeder cattle market to trade higher. January feeders closed $0.77 higher at $138.60, March feeders closed $0.85 higher at $138.12 and April feeders closed $0.37 higher at $139.35. Feeder cattle prices are hit and miss throughout the countryside as sales that are able to attract buyers are seeing good prices, but some markets are noticing that the holiday shortened week is leaving a few more of their seats empty this week.
At Tri-State Livestock Auction in McCook, Nebraska, compared to a week ago, steers sold $1.00 to $7.00 stronger and heifers traded $4.00 to $7.00 lower. With yearlings becoming harder and harder to come by, they continue to be met with excellent demand, especially if there's a full load of them available. The CME feeder cattle index for Nov. 23: up $0.18, $137.12.
LEAN HOGS:
Support grew stronger in the lean hog market throughout the afternoon and left the market to close mostly higher. December lean hogs closed $0.35 higher at $65.30, February lean hogs closed $0.37 lower at $66.75 and April lean hogs closed $0.02 higher at $70.22. The market's development came from the support seen throughout the rest of the futures market as, fundamentally, the market wasn't aided by a stronger cash trade nor a higher cutout value. Pork cutouts totaled 413.82 loads with 371.88 loads of pork cuts and 42.44 loads of trim. Pork cutout values: down $0.19, $77.58. Tuesday's slaughter is estimated at 497,000 head, 4,000 head more than a week ago and 7,000 head more than a year ago. The CME lean hog index for Nov. 20:
WEDNESDAY'S CASH HOG CALL: Slightly lower. As the market moves closer to Thursday's Thanksgiving holiday, packer ambition to support the cash market will most likely be minimal.
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