GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts remained mostly lower throughout Wednesday's trade, but the lean hog complex was able to rally throughout the day. No cash cattle trade was noted but packer interest could improve on Thursday. The week's export report will be released on Friday. December corn is up 3 1/2 cents per bushel and December soybean meal is up $1.90. The Dow Jones Industrial Average is up 337.28 points.
LIVE CATTLE:
The live cattle complex drifted through Wednesday's trade hoping to get a feel for what the cash cattle market was going to do. No trade being reported, traders opted to remain cautious and let most of the contracts drift lower through closing. Both the October and December 2024 contracts were able to maintain a slightly higher position through the day's end, which likely was fueled by the day's stronger boxed beef prices. While traders find the boxed beef market's support helpful, what they're really curious about this week, continues to be the cash market. Asking prices are noted in the South at $189 to $190 but are still not established in the North. Given that packers and feedlot managers are going to go toe-to-toe again this week, trade could begin to develop tomorrow, but it could just as easily be delayed until Friday. October live cattle closed $0.32 higher at $187.05, December live cattle closed $0.07 higher at $186.60 and February live cattle closed $0.42 lower at $186.97.
Wednesday's slaughter is estimated at 125,000 head -- steady with a week and year ago.
Boxed beef prices closed higher: choice up $2.30 ($319.13) and select up $0.28 ($292.37) with a movement of 145 loads (78.91 loads of choice, 44.95 loads of select, 6.55 loads of trim and 14.41 loads of ground beef).
THURDAY'S CATTLE CALL: Steady. Given that packers were able to get some cattle bought with time last week, it's going to be harder for feedlot managers to advance the cash market again this week.
FEEDER CATTLE:
With the live cattle and fed cash cattle markets not lending much support through Wednesday's trade, and the nearby corn contracts closing $0.03 higher, it was easy for traders to let the feeder cattle contracts drift lower through Wednesday's end. October feeders closed $0.42 lower at $246.10, November feeders closed $0.97 lower at $245.50 and January feeders closed $0.87 lower at $243.35. Once again today's lower close wasn't from a lack of fundamental support in terms of the feeder cattle market in the countryside. Traders continue to remain skeptical of overly supporting the complex as they're fearful that the market could be overbought. At the Winter Livestock Auction in La Junta, Colorado, feeder steers sold mostly $3.00 to $13.00 higher with instances of sharply higher prices across all the weight classes, compared to last week. Feeder heifers traded mostly $1.00 to $12.00 higher. Feeder cattle supply over 600 pounds was 53%. The CME feeder cattle index 10/15/2024: down $0.44, $249.45.
LEAN HOGS:
The lean hog complex powered through Wednesday's market as traders seemed committed to recovering some of the position lost through Tuesday's close. December lean hogs closed $2.47 higher at $77.70, February lean hogs closed $1.80 higher at $81.10 and April lean hogs closed $1.25 higher at $85.05. With today's higher close, the market is again, up against resistance pressure which traders will be faced with early Thursday morning. There's a chance that if the week's export report is strong, that traders could break through the market's current resistant threshold. However, if fundamental support isn't adequate, then prices could just as easily fall lower yet again. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.63 with a weighted average price of $77.43 on 3,970 head. Pork cutouts totaled 311.19 loads with 286.32 loads of pork cuts and 24.88 loads of trim. Pork cutout values: up $0.45, $94.85. Wednesday's slaughter is estimated at 486,000 head -- steady with a week ago and 9,000 head more than a year ago. The CME lean hog index 10/14/2024: down $0.08, $84.08.
THURSDAY'S HOG CALL: Lower. Given that packers haven't shown much interest in the cash market this week it likely means that their needs are minimal.
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