GENERAL COMMENTS
Regardless of where you looked throughout the livestock complex, higher prices were reported ahead of Friday's close. But the lean hog market took the cake Friday afternoon as its spot February contract jumped $4.12 higher ahead of closing. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.77 with a weighted average of $80.67 on 6,312 head. March corn is down 1/2 cent per bushel and January soybean meal is up $7.70. The Dow Jones Industrial Average is down 281.76 points.
LIVE CATTLE:
Between the live cattle complex being able to close higher, choice boxed beef prices jumping $8.53 higher by Friday's end and the market still applauding the mostly steady to $1.00 higher cash cattle trade -- it's safe to say that traders have jumped on board for supporting the stronger trajectory in the live cattle market. February live cattle closed at $155.77 which was an achievement as the market was able to close above its 40-day moving average. There's still some volatility laced throughout the market as boxed beef prices have been hit or miss -- but once Christmas passes the market should begin to level out. The cash cattle market saw a little bit more trade in the North where some live cattle sold for $156. Throughout the week Northern dressed cattle traded for $248 which is $1.00 higher than last week's weighted average, and Southern live cattle traded for $155 which is steady to $0.50 lower than last week's weighted average. Feedlots were again rewarded this week by waiting the market out and not being pressured into selling cattle early when packers were offering lower bids. December live cattle closed $1.00 higher at $155.05, February live cattle closed $0.92 higher at $155.77 and April live cattle closed $0.77 higher at $159.70.
Friday's slaughter is estimated at 119,000 head - 1,000 head less than a week ago and year ago. Saturday's slaughter is estimated at 24,000 head. This week's slaughter is estimated to be 629,000 head -- 23,000 head less than a week ago and 29,000 head less than a year ago.
Friday's import data shared that fresh beef imports into the United States totaled 21,468 mt with Canada, Mexico and Australia being the biggest importers. Currently, 2022 fresh beef imports are 4% higher than a year ago.
Boxed beef prices closed higher: choice up $8.53 ($262.83) and select up $6.94 ($235.45) with a movement of 71 loads (49.54 loads of choice, 7.22 loads of select, 3.99 loads of trim and 10.21 loads of ground beef). The choice/select spread sits at $27.38.
MONDAY'S CATTLE CALL: $1.00 higher. Yes, it may be the week of Christmas but feedlots proved this past week that they aren't going to let cattle go unless prices are at least steady. Next week packers will be buying for the week of New Year's Day and beyond when they'll resume normal processing speeds -- meaning that they'll need to procure cattle to fulfill those kills.
FEEDER CATTLE:
The feeder cattle complex closed higher with the live cattle market's momentum helping propel its market ahead of the week's end. January feeders closed $0.72 higher at $183.77, March feeders closed $0.02 higher at $184.70 and April feeders closed $0.12 lower at $188.12. Most sale barns hosted their last sale of the year this past week and will resume a normal schedule after the New Year's holiday. Demand was strong throughout the countryside this past week with light weight calves seeing the hottest interest. Oklahoma's Weekly Cattle Auction Summary shared that throughout the entire state feeder steers sold mostly steady, while feeder heifers traded mostly steady, but there were instances where they moved $3.00 higher on seven weights. Steer calves traded steady except for the three weights which sold $10.00 to $15.00 higher. Heifer calves traded $1.00 to $5.00 higher regardless of their weight. Slaughter cows sold steady to $2.00 lower and slaughter bulls traded $2.00 to $3.00 higher. Feeder cattle supply over 600 pounds was 46%. The CME feeder cattle index 12/15/2022: up $0.01, $179.51.
LEAN HOGS:
The lean hog complex wasn't lazy ahead of Friday's end as the market rallied up to 412 points higher ahead of Friday's close as technical support was found in the contracts and as stronger interest in pork cutout values helped fan the momentum. February lean hogs closed $4.12 higher at $85.77, April lean hogs closed $3.55 higher at $92.72 and June lean hogs closed $2.62 higher at $106.65. Seeing stronger demand in pork cutouts late this week gave traders the fundamental reassurance they needed in order to justifiably trade the contracts higher. The stronger carcass close saw the most support from the $11.54 jump in the picnic, the $3.67 jump in bellies and the $3.45 gain seen in the loin. So long as demand in the meat counter continues, the market shouldn't have trouble trading higher. Pork cutouts totaled 211.87 loads with 194.14 loads of pork cuts and 17.73 loads of trim. Pork cutout values: up $1.95, $87.44. Friday's slaughter is estimated at 461,000 head - 14,000 head less than a week ago and 16,000 head less than a year ago. Saturday's slaughter is projected to be around 199,000 head. Thursday's hog slaughter was revised to 475,000 head. The CME lean hog index 12/14/2022: up $0.20, $81.88.
MONDAY'S HOG CALL: Steady. Packers will be more active nearly next week as they'll want to get their buying done well ahead of the Christmas holiday, but prices aren't expected to be much higher.
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