GENERAL COMMENTS:
The livestock complex rounded out Friday's end mixed as traders appeared to run out of steam and interest later in the week. No new cash cattle sales were reported throughout the day as packers fulfilled most of their needs on Thursday. December corn is up 4 3/4 cents per bushel and December soybean meal is up $17.30. The Dow Jones Industrial Average is up 137.89 points.
From Friday-to-Friday livestock futures scored the following changes: October live cattle up $1.28, December live cattle up $1.28; October feeder cattle up $3.18, November feeder cattle up $3.93; October lean hogs down $0.17, December lean hogs down $0.85; December corn up $0.16, March corn up $0.15.
LIVE CATTLE:
The live cattle complex rounded out Friday's end mixed, but throughout the vast majority of the week, the market performed exceptionally well with the futures complex continuing to add market position above the 100-day moving average, and with the cash cattle market trading $2.00 to $3.00 higher. Friday's weaker end in the nearby contracts seemed to be nothing more than a lack of trader support ahead of the weekend as some traders likely clocked out early to enjoy some nice fall weather. October live cattle closed $0.35 lower at $183.75, December live cattle closed $0.35 lower at $184.47 and February live cattle closed $0.10 lower at $185.55. No new cash cattle trade developed throughout the day as most of the week's business was completed on Thursday. Throughout the week Southern live cattle traded at mostly $185 (which is $2.00 higher than last week's weighted average) and Northern dressed cattle traded at $294 (which is $3.00 higher than last week's weighted average).
Friday's slaughter is estimated at 116,000 head -- 8,000 head more than a week ago and 21,000 head more than a year ago. Saturday's slaughter is projected to be around 9,000 head. The week's total slaughter is estimated at 612,000 head -- 2,000 head more than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.32 ($296.69) and select down $0.29 ($282.08) with a movement of 96 loads (66.02 loads of choice, 16.18 loads of select, zero loads of trim and 14.28 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Before we can predict how next week's cash market will trade, we will need to see how many cattle packers got bought with time as that will help indicate who holds the vast majority of the market's leverage -- packers or feedlot managers.
FEEDER CATTLE:
The feeder cattle complex powered through Friday's end as the market was well supported by the live cattle market's higher tone, stronger fed cattle prices and by strong buyer demand in the countryside for feeders and calves. October feeders closed $0.15 higher at $247.07, November feeders closed $0.72 higher at $245.70 and January feeders closed $0.85 higher at $239.60. Throughout the entire week the nearby feeder cattle contracts traded higher as this past week was somewhat of a perfect storm for the market with ample technical and fundamental support helping propel prices higher. So long as the live cattle market continues to trade in a robust manner, the feeder cattle complex could keep with this trend into next week's market. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week feeder steers sold steady to $2.00 higher. Steer calves weighing 500 to 600 pounds sold $5.00 higher. And steer calves under 500 pounds traded sharply higher on a light test. Feeder heifers and heifer calves both traded steady to $2.00 lower, expect the four weight heifers which sold $7.00 higher. Slaughter cows sold $6.00 to $10.00 lower and slaughter bulls traded $2.00 lower. Feeder cattle supply over 600 pounds was 60%. The CME feeder cattle index 9/26/2024: up $1.33, $245.53.
LEAN HOGS:
The lean hog complex rounded out the day mixed with some of the deferred contracts closing slightly higher, but the nearby contracts closed mostly lower as traders are still wrestling with the marketing data unveiled yesterday on the Quarterly Hogs and Pigs Report. October lean hogs closed $0.02 higher at $82.05, December lean hogs closed $0.55 lower at $73.37 and February lean hogs closed $0.32 lower at $77.50. And while supply pressures may loom for the hog complex in the near future, thankfully Friday's afternoon carcass price closed higher with significant gains in butt (up $2.60), loin (up $1.85) and the picnic (up $1.45) all helping advance the carcass price. Hog prices closed $3.07 lower on the Daily Direct Afternoon Hog Report and 3,440 head traded. Pork cutouts totaled 285.95 loads with 262.37 loads of pork cuts and 23.58 loads of trim. Pork cutout values: up $1.11, $95.75. Friday's slaughter is estimated at 484,000 head -- 9,000 head more than a week ago and 10,000 head more than a year ago. Saturday's slaughter is projected to be around 152,000 head. The CME lean hog index 9/25/2024: up $0.02, $84.07.
MONDAY'S HOG CALL: Lower. The cash hog market won't likely see much demand on Monday as packers will continue to closely monitor demand and will be mindful about the supplies coming down the pike.
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