GENERAL COMMENTS:
From Friday-to-Friday livestock futures scored the following changes: December Live cattle off $0.13, February Live cattle up $2.28; November Feeder cattle up $3.70, January Feeder cattle up $4.05; December Lean hogs up $1.28, December Lean hogs up $1.28; December Pork cutout up $1.00, December Pork cutout up $1.00.
Firm losses moved into feeder cattle and lean hog trade Friday as traders reacted to previous sharp upward market movement that developed Thursday. Traders were not as much focused on retracting market gains at the end of the week, but the limited volume and new market direction left additional buyer support hard to find. The strong support at the end of the week for most outside commodity markets left traders attention on other areas and markets than livestock trade. For the week, livestock markets in general posted positive moves with all but spot live cattle contracts posting triple-digit gains. The overall support through the complex continues to point to firming technical and fundamental support that followed the market weakness in October. It is likely that continued support will redevelop early next week unless significant outside market changes develop over the weekend. Hog prices closed lower on the Daily Direct Afternoon hog report, down $1.31 with a weighted average of $67.18 on 1,300 hogs. December corn closed up 7 1/4 at $4.773 and December soybean meal closed up $15.80 at $442.1. The Dow Jones Industrial Average is up 222.24 at 34,061.32.
LIVE CATTLE:
Live cattle futures shifted lower as traders pulled back from previous gains seen earlier in the week. This market softness has more to do with light end of the week buyer interest returning to the market than an actual change in direction through the complex. February futures posted the most aggressive losses, focusing on the softness across feeder cattle trade. Live cattle futures were more focused on keeping pace with moves in feeder cattle than actual live cattle technical or fundamental factors. Spot month live cattle futures have still gained nearly $5 per cwt from market lows in October, allowing some traders willing to adjust positions at the end of the week. There continues to be growing support across the entire livestock market during early November, leaving many to feel that recent support levels have been met and creating the potential for additional price support in the days and weeks to come. Cash cattle trade has developed in the North Friday with trade reported at $292 per cwt dressed basis. These price levels are $2 per cwt above last week's weighted average price, and even though below current asking prices may be able to buy additional cattle before the end of the week. Trade in the South remains quiet at this point of the afternoon; a few bids are starting to develop at $185, which is still below asking prices, but much better than the silence seen until now. Asking prices remain firm at $188 in the South, and most likely packers will need to buy some cattle before the end of the week in order to maintain packer supplies. Trade could develop any minute or could be a late afternoon evening affair this week, especially across the South. December live cattle closed $0.80 lower at $183.875, February live cattle closed $1.20 lower at $185.225 and April live cattle closed $0.95 lower at $187.825.
Friday's slaughter is estimated at 122,000 head, 2,000 head less than a week ago and 3,000 head less than a year ago. Saturday slaughter is expected at 14,000 head. Total weekly slaughter to date is expected at 632,000 head, 4,000 head less than last week, and 36,000 head less than a year ago.
Boxed beef prices closed lower: choice down $2.19 ($302.34) and select down $2.33 ($272.01) with a movement of 151.40 loads (65.35 loads of choice, 23.89 loads of select, 37.78 loads of trim and 24.38 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Trade early next week is expected to remain undeveloped with Monday's activity focusing on show list distribution and inventory taking following late developing cash market trade this week.
FEEDER CATTLE:
The feeder cattle complex led the livestock market losses Friday as traders adjusted positions at the end of the week. Given the aggressive gains seen Thursday as well as the general upward trend through most of the week, trades took full advantage of the opportunity to square positions Friday. November through March futures posted $2 per cwt losses, although the overall underlying trade direction is still not changing, nor the technical market factors. Light volume at the end of the week was also attributed to late week buyer support swiftly moving into outside commodity and financial markets. Traders are likely to focus on longer term market direction and fundamental market shifts when returning to the complex Monday. November feeders closed $2.03 lower at $240.6, January feeders closed $2.43 lower at $239.75 and March feeders closed $2.08 lower at $242.35. The CME Feeder Cattle Index for Nov. 1: down $0.18, $237.62.
LEAN HOGS:
Lean hog futures were also sluggish Friday with lack of follow-through buying allowing prices to erode moderately through the entire session. December futures led the market lower, being the only contract with triple-digit losses Friday. February contracts continue to hold a firm market premium to the spot December contract, which some traders expect to see firm support in spring price levels based on renewed longer term pork demand as well as the potential for slightly reduced pork supplies during 2024. December lean hogs closed $1.53 lower at $71.75, February lean hogs closed $0.75 lower at $75.475 and April lean hogs closed $0.78 lower at $80.725. Friday's hog slaughter is estimated at 486,000 head, 1,000 head more than a week ago and 3,000 head more than a year ago. Saturday slaughter is expected at 260,000 head. Total weekly slaughter is estimated at 2.67 million head, 67,000 above week ago levels, 102,000 head over year ago slaughter numbers for the week. Pork Cutouts totaled 270.06 loads with 226.35 loads of pork cuts and 43.71 loads of trim. Pork cutout values are down $0.13 at $87.28. The CME Lean Hog Index for Nov. 2: down $0.10, $76.84.
MONDAY'S HOG CALL: Steady. Cash hog values are called steady Monday as packers continue to focus on another full week of slaughter needs.
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