GENERAL COMMENTS
It was a mixed day for the livestock complex as Northern feedlots pushed their market higher, but the rest of the market performed halfheartedly. Heading into Friday's complex, the market will likely trade in this same lackadaisical fashion. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $3.36 with a weighted average of $86.12 on 5,940 head. December corn is down 8 1/4 cents per bushel and December soybean meal is down $10.20. The Dow Jones Industrial Average is down 146.51 points.
LIVE CATTLE:
Thursday's live cattle market could easily be summarized by simply saying that traders didn't want to trade, and once again the North championed true price discovery in the cash market by being willing to wait time out and not willing to jump at the first bid offered. Traders had a tough hand of cards to play as they liked seeing Northern feedlots push the cash cattle market higher, but that victory was quickly outweighed by the market's negative counterparts as Thursday presented a piddly export-sales report for beef, and Southern feedlots let cattle trade for steady money. December live cattle closed $0.55 higher at $151.95, February live cattle closed $0.02 lower at $154.87 and April live cattle closed $0.20 lower at $158.30. Southern live cattle began to trade around the noon hour for $150 which is steady with last week's business, and Northern dressed cattle sold for $242, which is $2.00 higher than last week's weighted average. Thursday's slaughter is estimated at 128,000 head, steady with a week ago and 5,000 head more than a year ago.
Beef net sales of 9,200 mt for 2022 were primarily for Japan (3,000 mt), South Korea (1,900 mt) and Taiwan (1,800 mt).
Thursday's actual slaughter data for the week ending Oct. 22 shared that for the week steers averaged 925 pounds, which was 1 pound more than the previous week, but 7 pounds more than a year ago. And for the same week, heifers averaged 848 pounds, which is 2 pounds more than the week before and 6 pounds more than the same time a year ago.
Boxed beef prices closed mixed: choice up $1.71 ($265.18) and select down $0.10 ($233.06) with a movement of 129 loads (85.16 loads of choice, 18.03 loads of select, 13.04 loads of trim and 13.13 loads of ground beef). The choice/select spread sits at $32.12.
FRIDAY'S CATTLE CALL: Steady. Given that cattle have now sold in both regions, prices will likely hold steady with the trend established Thursday.
FEEDER CATTLE:
The feeder cattle complex was extremely disappointing Thursday as the corn market traded lower and the feeder cattle still couldn't muster enough support to trade higher. The cash cattle market's trade was mixed, but with corn closing $0.07 to $0.08 lower in its nearby contracts, you would have thought that feeders would have attempted a mildly higher close. Unfortunately, the unknown nature that's laced throughout our economy and the grain complex extends the opportunity for volatility to run untamed. November feeders closed $0.92 lower at $178.00, January feeders closed $0.57 lower at $179.42 and March feeders closed $0.15 lower at $181.77. At Mitchell Livestock Auction in Mitchell, South Dakota, compared to last week, an unevenly steady undertone was noted on steers up to 850 pounds, steers weighing 850 to 900 pounds traded $2.00 higher and steers weighing 900 to 1,000 pounds sold $2.00 lower. A lower undertone was noted on heifers up to 750 pounds. Heifers weighing 800 to 900 pounds sold steady to $2.00 lower, but heifers weighing 900 to 1,000 pounds sold $2.00 higher. Feeder cattle supply over 600 pounds was 87%. The CME Feeder Cattle Index for Nov. 2: up $0.34, $177.63.
LEAN HOGS:
The lean hog complex continues to be a peculiar market. Yes, pork cutout values did close slightly higher Thursday afternoon, but that wasn't enough to comfort traders into believing that higher prices should be chased throughout the futures complex. December lean hogs closed $0.07 higher at $83.37, February lean hogs closed $0.02 lower at $87.17 and April lean hogs closed $0.10 lower at $92.55. Pork cutouts were able to close higher mainly because of the $5.92 jump in ribs, but the picnic wasn't far behind with a gain of $4.37. The cash hog market continues to be bewildering as prices again closed lower and the sheer number of hogs purchased this week is still incredibly thin compared to normal. Pork cutouts totaled 337.46 loads with 304.62 loads of pork cuts and 32.83 loads of trim. Pork cutout values: up $0.13, $96.36. Thursday's slaughter is estimated at 489,000 head, 2,000 head less than a week ago and 12,000 head more than a year ago. The CME Lean Hog Index for Nov. 1: down $0.46, $93.75.
Pork net sales of 47,900 mt for 2022 were primarily for Mexico (12,700 mt), China (11,200 mt) and Japan (9,300 mt).
FRIDAY'S HOG CALL: Lower. While this week's cash hog market hasn't been one that's demanded much attention, it's rarely seen that hog buyers work the market higher on Friday.
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