GENERAL COMMENTS:
Friday's export report was a mixed bag as the report's findings sent cattle trending lower while it gave the hog complex just enough support to keep with its higher trend. The cash cattle market hasn't seen any more trade develop and at this point it's looking like the week's trade is all but done with. December corn is down 6 1/4 cents per bushel and December soybean meal is up $2.30. The Dow Jones Industrial Average is down 268.61 points.
LIVE CATTLE:
The live cattle complex is trending lower into Friday's afternoon as the market was disappointed with Friday's export data. December live cattle are down $0.32 at $147.60, February live cattle are down $0.55 at $151.15 and April live cattle are down $0.72 at $154.87. The cash cattle market hasn't seen any more interest develop and, while it's quite possible that some clean-up trade happens between now and the day's end, largely the week's trade is done with. Throughout the week, Southern live cattle have traded for $145 which is $1.00 stronger than last week's weighted average, and Northern dressed cattle have traded at mostly $232, which is $2.00 higher than last week's weighted average.
Beef net sales of 13,200 mt for 2022 were primarily for Japan (5,300 mt), South Korea (2,900 mt) and Mexico (2,300 mt).
Boxed beef prices are higher: choice up $0.72 ($247.25) and select up $1.68 ($217.54) with a movement of 70 loads (47.72 loads of choice, 7.29 loads of select, 5.69 loads of trim and 9.72 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading lower throughout Friday's market as the complex is still grieving the latest Consumer Price Index, which pushed inflation year to date up 8.2%. That comes as not only bad news for consumers who are seeing price hikes everywhere they turn, but it's also bad for investors who are undoubtedly going to be tied to higher interest rates until inflation shows some sign of retreating. For cattle buyers who are going to need to line out their operating money for the year ahead, that's a nerve-racking reality as the industry's margins are already thin enough, let alone when you have to configure paying more for borrowing money. November feeders are down $1.35 at $174.80, January feeders are down $1.20 at $175.10 and March feeders are down $1.00 at $176.57.
LEAN HOGS:
The lean hog complex found Friday's export report rather supportive, which has helped the market trade higher. December lean hogs are up $0.42 at $81.02, February lean hogs are up $0.65 at $82.45 and April lean hogs are up $0.75 at $86.15. Morning pork cutout values are higher again, which will hopefully lead into a higher pork cutout report Friday afternoon as retailers are stocking up on pork ahead of the holiday run.
The projected lean hog index is unavailable at this time. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.50 with a weighted average of $87.29, ranging from $80.00 to $96.00 on 3,971 head and a five-day rolling average of $86.24. Pork cutouts total 242.47 loads with 224.06 loads of pork cuts and 18.41 loads of trim. Pork cutout values: up $0.26, $103.33.
Pork net sales of 29,900 mt were primarily for Mexico (8,100 mt), China (5,900 mt) and Japan (5,300 mt).
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