GENERAL COMMENTS:
The cattle complex traded mostly lower into Thursday's close while the hog complex rallied. Sales developed Thursday afternoon in the cash cattle market and Southern live cattle traded at mostly $188 ($1.00 higher than last week's weighted average) and Northern dressed sales were marked at mostly $296 (steady with last week's weighted average). December corn is up 2 cents per bushel and December soybean meal is up $4.40. The Dow Jones Industrial Average is up 161.35 points.
LIVE CATTLE:
Even though the cash cattle market was able to trade steady to $1.00 higher, traders let the complex close mixed. One could point to the boxed beef market's momentum coupled with the cash cattle market's ability to hold prices steady this week and argue that the board "should" have been able to close mildly higher. But, given the fact that traders continue to worry about the complex being over-bought, steady trade in the cash cattle market wasn't enough of a fundamental gust to push the futures complex higher. October live cattle closed $0.42 lower at $186.62, December live cattle closed $0.42 lower at $186.17 and February live cattle closed steady at $186.97. Throughout the day Northern dressed cattle traded at $296 which is steady with last week's weighted average and Northern live cattle traded at $187 to mostly $188 which is steady to $1.00 higher than last week's weighted average. Asking prices for cattle left to sell remain firm in the South at $189 to $190, and in the North at $298 plus.
Thursday's slaughter is estimated at 118,000 head -- 3,000 head more than a week ago and 7,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.13 ($319.26) and select up $1.15 ($293.52) with a movement of 143 loads (98.12 loads of choice, 20.90 loads of select, 7.41 loads of trim and 16.77 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that trade has now developed in both regions, it's likely that prices remain steady with the week's trend for any more cattle that sell this week.
FEEDER CATTLE:
The feeder cattle complex rounded out the day mixed as the market's nearby contracts were mildly supported through the day's close thanks to the continued support of aggressive buyer demand in the countryside for feeders and by the steady trade in the fed cash cattle market. October feeders closed $0.62 higher at $246.72, November feeders closed $0.25 higher at $245.75 and January feeders closed $0.22 higher at $243.12. And with Tuesday's sharp decline, the spot November feeder cattle contract is again below its 100-day moving average and far from resistance which gives traders more room to trade higher without coming up against technical resistance. At Torrington Livestock Auction in Torrington, Wyoming, compared to last week feeder steers traded $5.00 to $11.00 higher and feeder heifers traded steady. Steer and heifer calves also saw the same trend as they traded $5.00 to $10.00 higher as well. Feeder cattle supply over 600 pounds was 44%. The CME feeder cattle index 10/16/2024: up $0.78, $250.25.
LEAN HOGS:
The lean hog complex was the only livestock market to successfully round out the day higher as traders were elated to see strong consumer support in the form of higher pork cutout values. The belly did close sharply higher (up $5.65) but every single cut close higher besides the rib which all helped continue to the carcass's higher end. Hopefully, traders see continued demand from Friday's export sales report at which point the board may be able to maintain its higher trend. December lean hogs closed $0.02 lower at $77.67, February lean hogs closed $0.45 higher at $81.55 and April lean hogs closed $0.07 higher at $85.12. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.28 with a weighted average price of $76.15 on 870 head. Pork cutouts totaled 291.01 loads with 263.29 loads of pork cuts and 27.73 loads of trim. Pork cutout values: up $1.56, $96.41. Thursday's slaughter is estimated at 486,000 head -- 1,000 head less than a week ago and steady with a year ago. The CME lean hog index 10/15/2024: down $0.23, $83.85.
FRIDAY'S HOG CALL: Lower. With packers showing virtually no interest in Thursday's cash market, it's likely that they again show little interest in Friday's market.
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