GENERAL COMMENTS:
The livestock contracts don't seem to be too worried about it being a shortened holiday week for the markets, as they all jumped higher upon Monday's arrival. Upon seeing exactly how many cattle traded in last week's cash cattle market, feedlots continue to be encouraged as they aspire for higher prices again this week. December corn is up 3 1/4 cents per bushel, and December soybean meal is down $0.50. The Dow Jones Industrial Average is up 229.06 points, and the NASDAQ is down 115.10 points.
LIVE CATTLE:
The momentum that's fueling the live cattle market and cash cattle market to rally only seems to grow stronger and stronger. Upon seeing how many cattle were bought through the cash cattle market last week and how many of them were committed for nearby delivery, feedlots are ecstatic to see that packers are still close to the knife and will likely be willing to buy cattle at higher prices again this week as demand pushes them to do so. December live cattle are up $0.77 at $134.30, February live cattle are up $1.17 at $138.85 and April live cattle are up $0.90 at $142.20. Last week's lower-trending boxed beef market didn't come as a surprise, as the market always sees more interest in ham and turkey during the holidays, but Monday's midday prices are helping to add to the optimism that's floating throughout the marketplace. There's yet to be any cash cattle trade, but Southern asking prices are noted at $136 or better, and the North has yet to disclose their asking prices. The shortened holiday weeks always throw a kink into the market as business carries on, but it's never in a predictable or usual fashion. But with packers being as interested in the cash cattle market as they have been over the last month, it's likely that this week's trade will still be stronger and significant in its volume. This week's showlists are lighter in Nebraska/Colorado, and steady to somewhat lighter in Texas and Kansas.
Last week's negotiated cash cattle trade totaled 116,750 head, of which 75% (88,005 head) were committed for the nearby delivery, while the remaining 25% were committed for the deferred delivery.
Boxed beef prices are higher: choice up $1.63 ($280.04) and select up $1.49 ($265.32) with a movement of 61 loads (32.37 loads of choice, 12.94 loads of select, 8.13 loads of trim and 7.88 loads of ground beef).
FEEDER CATTLE:
The momentum in the feeder cattle market is exceptional as the market rallies upon the support stemming from a robust cash cattle market and doesn't seem too concerned about the grain market's rally thus far as the entire feeder cattle complex rallies onward. January feeders are up $0.90 at $161.85, March feeders are up $0.80 at $164.17 and April feeders are up $0.85 at $166.72. And while the feeder cattle market may be stepping into the new week with plenty of vigor, other than a few sale barns that are having sales early this week, the market will be relatively quiet, as most sale barns take the week off in observance of the holiday.
LEAN HOGS:
Despite being worried about a weaker cash market and waning pork cutout values, the lean hog market is keeping pace with the cattle contracts Monday morning and posting a modest rally heading into the afternoon. December lean hogs are up $1.05 at $74.80, February lean hogs are up $0.60 at $83.07 and April lean hogs are up $0.55 at $87.90. All in all, the market's rally solely comes from a technical stance as, fundamentally, the holidays aren't going to bode well for the market. Worries about hogs getting backed up have been on everyone's mind as shortened holiday weeks mean slower processing speeds. But once this holiday run is done with and the new year comes around, 2022 is ready for the hog market and hopeful aspirations await the hog market there.
The projected lean hog index for 11/19/2021 is down $0.58 at $72.88, and the actual index for 11/18/2021 is down $1.81 at $73.46. Hog prices are lower on the National Direct Morning Hog Report, down $0.07 with a weighted average of $54.90, ranging from $53 to $55 on 7,737 head and a five-day rolling average of $55.84. Pork cutouts total 194.07 loads with 173.81 loads of pork cuts and 20.26 loads of trim. Pork cutout values: up $1.32, $91.14.
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