GENERAL COMMENTS
The livestock contracts closed lower Friday afternoon as traders didn't find the fundamental support they needed. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.11 with a weighted average of $85.34 on 2,721 head. December corn is up 4 3/4 cents per bushel and December soybean meal is up $3.30. The Dow Jones Industrial Average is up 32.49 points.
LIVE CATTLE:
The live cattle complex closed lower Friday afternoon as traders had little support from this week's fundamentals to drive the contracts higher. While it may be easy to look at this week's shortcomings (sideways cash market, choppy futures complex and mixed boxed beef demand) and say this week's market missed the boat, we can't forget about where the market's positioned. Cash cattle prices are trading the highest they've been all year, and even though the futures market wasn't able to take out it's resistance of $152.77, the December contract still sits well above it's 40-day moving average and 100-day moving average. December live cattle closed $1.55 lower at $151.52, February live cattle closed $1.77 lower at $153.25 and April live cattle closed $1.45 lower at $157.05. Friday saw a little bit of clean-up trade happen, but everything that sold, traded steady with the week's trend. Through the week, Southern live cattle traded at mostly $150, which is fully steady with last week's weighted averages, and Northern dressed cattle traded at mostly $242, which is also fully steady with last week's weighted average basis Nebraska.
Friday's slaughter is estimated at 120,000 head, 5,000 head less than a week ago but 3,000 head more than a year ago. Saturday's slaughter is projected to be 41,000 head. This week's slaughter is estimated at 671,000 head, 4,000 head more than a week ago and 12,000 head more than a year ago
Friday's Import data shared that this week fresh imports in the United States totaled 21,804 metric tons with Australia, Canada and Mexico being the biggest importers.
Boxed beef prices closed lower: choice down $4.33 ($258.94) and select down $1.56 ($235.27) with a movement of 76 loads (47.75 loads of choice, 11.63 loads of select, 5.25 loads of trim and 11.80 loads of ground beef). The choice/select spread sits at $23.68. Throughout the week, choice cuts averaged $263.27 (down $0.46 from last week) and select cuts averaged $235.86 (up $2.80 from last week) and the week's total movement of cuts, grinds and trim totaled 560 loads. Throughout the week the choice/select spread averaged $27.41.
MONDAY'S CATTLE CALL: Higher. With front-end supplies of market-ready cattle still manageable, feedlots could advance next week's market higher.
FEEDER CATTLE:
With the corn market's $0.03 to $0.04 rally through Friday's end, the feeder cattle contracts were rocked back on their heels and sent trading lower through closing. January feeders closed $3.12 lower at $178.57, March feeders closed $2.65 lower at $181.15 and April feeders closed $2.35 lower at $184.60. No grain deal has been reached with Russia yet on whether or not Putin will allow for exports out of Ukraine. Consequently, the market continues to wait anxiously, which creates added volatility. Feeders will continue to watch grain prices closely as feed costs are one of their biggest concerns right now. Oklahoma's Weekly Cattle Auction Summary shared that, throughout the entire state, and when compared to last week, feeder steers traded steady to $3.00 lower. Steer calves sold steady expect though weighing 300 to 400 pounds which traded $2.00 to $5.00 higher. Feeder heifers sold $1.00 to $4.00 higher and heifer calves traded $1.00 to $5.00 higher. Feeder cattle supply over 600 pounds was 41%. The CME Feeder Cattle Index for Nov. 10: down $0.05, $175.46.
LEAN HOGS:
The lean hog complex closed in a mixed manner as the nearby contracts closed slightly lower, but the market's deferred months keep their mild rally through Friday's end. Traders looked at the market's recent pullback in processing, turbulation in pork cutout values and demand, and opted to keep the contracts trading sideways through the week's final hours. With the holidays nearing, packers and hog producers alike hope that demand will increase in the weeks ahead. December lean hogs closed $0.52 lower at $84.35, February lean hogs closed $0.42 lower at $88.40 and April lean hogs closed $0.12 lower at $94.10. Pork cutouts totaled 214.60 loads with 195.93 loads of pork cuts and 18.67 loads of trim. Pork cutout values: up $1.46, $98.00. Friday's slaughter is estimated at 450,000 head, 18,000 head more than a week ago and 32,000 head more than a year ago. Saturday's slaughter is projected to be 91,000 head. The CME Lean Hog Index for Nov. 9: down $0.50, $88.96.
MONDAY'S HOG CALL: Lower. Packers aren't normally aggressive in Monday's market and it's not likely that they will be this upcoming week either.
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