GENERAL COMMENTS
Watching the futures contracts trade throughout Wednesday's market was like watching paint dry, but the dynamic nature of Wednesday's cash cattle trade made up for it. Even though it's a short holiday week, packers needed cattle and feedlots weren't willing to sell cattle at steady money. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.62 with a weighted average of $84.68 on 8,053 head. December corn is up 6 1/2 cents per bushel and December soybean meal is up $1.10. The Dow Jones Industrial Average is up 90.65 points.
LIVE CATTLE:
The live cattle futures complex didn't perform well throughout Wednesday's market as traders lackadaisically traded ahead of the Thursday's holiday break, but feedlots didn't approach Wednesday's market with the same mindset. It was invigorating to see cash cattle trade develop for $245 in the North ($3.00 higher than last week's weighted average) and for $154 to $155 in the South (roughly $4.00 higher than last week's weighted average). Thankfully for feedlots, packers were short bought coming into this week, and for those who needed cattle -- they ended up paying higher prices as feedlots still sit in the driver's seat of the cash cattle market. December live cattle closed $0.45 lower at $153.35, February live cattle closed $1.00 lower at $155.42 and April live cattle closed $0.77 lower at $159.12.
Wednesday's slaughter is estimated at 129,000 head, steady with a week ago and 7,000 head more than a year ago.
Boxed beef prices closed lower: choice down $4.07 ($252.56) and select down $0.85 ($233.33) with a movement of 155 loads (92.81 loads of choice, 16.54 loads of select, 27.60 loads of trim and 18.23 loads of ground beef). The choice/select spread sits at $19.23.
FRIDAY'S CATTLE CALL: Steady. Given that prices shot higher, any more cattle that trade will likely trade steady with the week's trend.
FEEDER CATTLE:
Even though the grain market rallied only slightly, it was enough to rock Wednesday's feeder cattle market back on its heels and send the contracts tumbling 110 to 242 points lower by the day's close. One would think that the cash cattle market's $3.00 to $4.00 rally would more than outweigh the corn market's $0.06 rally, but the combination of higher grain prices amid a lightly traded market as some traders stepped out early for the holiday left the feeder cattle complex especially vulnerable. January feeders closed $2.42 lower at $179.25, March feeders closed $2.22 lower at $182.35 and April feeders closed $1.87 lower at $186.05. At Miles City Livestock Commission at Miles City, Montana, compared to last week, and on a run of 3,322 head, steer calves under 450 pounds traded $10.00 to $15.00 lower, steers weighing 450 to 549 pounds sold steady and those weighing over 550 pounds traded steady to $5.00 higher. Heifer calves under 450 pounds sold mostly $5.00 to $8.00 lower, heifers weighing 450 to 549 pounds sold steady and those weighing over 550 pounds traded mostly $5.00 higher. Feeder cattle supply over 600 pounds was 14%. The CME Feeder Cattle Index for Nov. 22: up $0.19, $174.83.
LEAN HOGS:
It's not surprising to see that the lean hog contracts simply chopped sideways to somewhat lower throughout Wednesday's market as traders weren't as aggressive and, with both cash prices and cutouts closing lower, it was farfetched to think that hogs would close higher. December lean hogs closed $0.30 lower at $83.95, February lean hogs closed $1.27 lower at $88.80 and April lean hogs closed $0.95 lower at $94.60. Pork cutouts totaled 374.62 loads with 329.03 loads of pork cuts and 45.59 loads of trim. Pork cutout values: down $1.94, $89.36. Wednesday's slaughter is estimated at 457,000 head, 31,000 head less than a week ago and 12,000 head less than a year ago. The CME Lean Hog Index for Nov. 21: down $0.43, $86.54.
FRIDAY'S HOG CALL: Lower. The cash market could see a little more trade develop come Friday, but it's likely that this week's cash hog trade is all but done with.
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