GENERAL COMMENTS:
It was a strong day for the livestock complex as all three of the markets closed higher and the cash cattle market managed to trade $1.00 higher in the South and steady in the North. Some more trade could develop on Friday, but it's likely that the week's prices are set. December corn is down 2 1/2 cents per bushel and December soybean meal is down $5.10. The Dow Jones Industrial Average is down 57.88 points.
Thursday's export report shared that beef net sales of 13,700 mt for 2024 were down 39% from the previous week and 8% from the prior 4-week average. The three primary buyers were China (4,200 mt), Japan (3,500 mt) and South Korea (1,500 mt). Pork net sales of 50,600 mt for 2024 were up 17% from the previous week and 56% from the prior 4-week average. The three primary buyers were Mexico (27,200 mt), Japan (7,200 mt) and South Korea (3,900 mt).
LIVE CATTLE:
It was a supportive day for the live cattle complex as the market yet again closed higher thanks to the help of strong market fundamentals which came from higher boxed beef prices and the fed cash cattle market. Throughout the day Southern live cattle traded at $187 which is $1.00 higher than last week's weighted average and Northern dressed sales were marked at $296 which is steady with last week's weighted average. I was somewhat surprised to see Northern cattle trading steady as I believed that feedlot managers may hold out for better money. Then again, it's pretty hard to look at a bid of $296 and turn it down when you put historical prices for this time of year into perspective. October live cattle closed $0.97 higher at $189.17, December live cattle closed $1.05 higher at $188.27 and February live cattle closed $0.70 higher at $188.87. Some more trade could take place on Friday, but given that packers have cut throughput, it's likely that the week's volume will be fairly thin.
Thursday's slaughter is estimated at 115,000 head -- 9,000 head less than a week ago and 6,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.77 ($309.95) and select up $2.10 ($290.73) with a movement of 108 loads (57.61 loads of choice, 30.28 loads of select, 7.11 loads of trim and 13.34 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady with the week's trend. Given that prices have now been reported in both regions, it's likely that the week's average is set.
FEEDER CATTLE:
The feeder cattle complex was elated to see the live cattle contracts trading higher and then further supported by the fed cash cattle market's steady to $1.00 higher trade. Seeing ample support in the market, pushing the contracts higher was somewhat effortless for traders throughout Thursday's trade. October feeders closed $1.00 higher at $250.27, November feeders closed $1.27 higher at $249.95 and January feeders closed $1.32 higher at $247.20. It is also worth noting that again the spot November contract closed above its 100-day moving average, which continues to a threshold traders want to conquer but will need stable fundamental support in order to keep the market above that price point. At La Junta Livestock Commission in La Junta, Colorado compared to last week feeder steers sold $2.00 to $14.00 higher with instances sharply higher across all weight classes. Feeder heifers sold $2.00 to $14.00 higher as well. Feeder cattle supply over 600 pounds was 41%. The CME feeder cattle index 10/9/2024: up $0.04, $249.52.
LEAN HOGS:
The lean hog complex was also able to close higher as the market was grateful for the day's strong export sales report. Traders advanced the entire marketplace upon seeing such robust export demand, which also helped ease the disappointment in seeing this afternoon's cutout price drift slightly lower yet again. Today's afternoon carcass price was pulled lower because of the belly's $5.01 decline -- most of the other cuts either close only mildly lower or closed higher. December lean hogs closed $1.37 higher at $76.95, February lean hogs closed $0.95 higher at $80.40 and April lean hogs closed $0.65 higher at $84.62. Hog prices are unavailable on the Daily Direct Afternoon Hog Report due to confidentiality. However, we can see that only 1,752 head traded throughout the day which pushed the five-day rolling average to $76.11. Pork cutouts total 318.29 loads with 287.81 loads of pork cuts and 30.48 loads of trim. Pork cutout values: down $0.33, $94.87. Thursday's slaughter is estimated at 487,000 head -- 11,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index 10/8/2024: up $0.25, $84.47.
FRIDAY'S HOG CALL: Lower. At this point its safe to say that packers have bought the vast majority of their cash needs for the week and won't likely be active in Friday's cash market.
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