GENERAL COMMENTS:
The livestock complex rounded out the week mixed as the cattle contracts saw extra trader interest flow into their markets, but the lean hog complex wasn't as fortunate. The cash cattle market didn't see much interest, as packers did most of their buying earlier in the week. December corn is up 5 cents per bushel, and December soybean meal is up $2.60. The Dow Jones Industrial Average is down 305.87 points.
From Friday to Friday, livestock contracts scored the following changes: December live cattle down $0.75, February live cattle down $0.05; November feeder cattle up $5.67, January feeder cattle up $5.80; December lean hogs down $0.92, February lean hogs down $1.93; December corn down $0.07, March corn down $0.09.
Friday's export report revealed that beef net sales of 14,200 metric tons (mt) for 2024 were up 78% from the previous week and 8% from the prior four-week average. The three primary buyers were Japan (4,300 mt), South Korea (2,500 mt) and Mexico (2,200 mt). Pork net sales of 19,800 mt for 2024 were down noticeably from the previous week and down 12% from the prior four-week average. The three primary buyers were Mexico (9,600 mt), Japan (3,900 mt) and Colombia (2,100 mt).
LIVE CATTLE:
The live cattle market was able to close higher on Friday afternoon solely because of the added interest of traders as they flocked to the ag commodity markets to hopefully hedge against some of the inflation that could remain in the marketplace heading into 2025. December live cattle closed steady at $182.95, February live cattle closed $0.15 higher at $185.25, and April live cattle closed $0.47 higher at $187.40. The spot February contract was able to maintain its position above the market's 100-day moving average, which continues to be a support plane the market is dancing around. Bids of $185 were offered throughout the day in Nebraska and Kansas, but feedlot managers didn't seem interested in trading any more cattle at weaker prices. Throughout the week, Southern live cattle traded at mostly $185, which is $2 lower than last week's weighted average, and Northern dressed cattle traded at mostly $290, which is $3 lower than last week's weighted average.
Friday's slaughter is estimated at 120,000 head -- 4,000 head more than a week ago and steady with a year ago. Saturday's slaughter is projected to be around 3,000 head. The week's total slaughter is estimated to be 606,000 head -- 13,000 head less than a week ago and 33,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.46 ($303.34) and select down $0.52 ($276.14) with a movement of 115 loads (65.67 loads of choice, 25.50 loads of select, 12.28 loads of trim and 11.18 loads of ground beef).
MONDAY'S CATTLE CALL: Steady to somewhat lower. Given that the market is nearing a holiday week, it's likely that packers won't be overly aggressive in the cash cattle market.
FEEDER CATTLE:
The feeder cattle complex was treated well Friday by traders, as many of them took it upon themselves to jump into the ag commodity sector to hedge against any inflation that is to come. November feeders closed $3.47 higher at $251.10, January feeders closed $4.02 higher at $247.22 and March feeders closed $3.92 higher at $245.65. I would also be remiss not mention just how strong buyer demand has been in the market as of late, which is clearly indicated through the CME's feeder cattle index, which closed Friday afternoon at $252.31. The Oklahoma Weekly Cattle Auction Summary revealed that compared to last week and throughout the entire state, feeder steers and heifers over 700 pounds sold steady to $3 higher, but steers and heifers under 700 pounds traded up to $10 higher. Steer and heifer calves sold up to $20 stronger. Slaughter cows sold steady to $2 higher, lean cows sold $4 lower and slaughter bulls traded $2 higher. Feeder cattle supply over 600 pounds was 46%. The CME feeder cattle index 11/14/2024: up $1.27, $252.31.
LEAN HOGS:
The lean hog complex started the day out on a lousy note with the morning's disappointing export sales report, and the market continued to trade lower from that point on. December lean hogs closed $0.60 lower at $79.50, February lean hogs closed $0.87 lower at $82.90 and April lean hogs closed $1.22 lower at $86.90. Yes, pork cutout values were up again Friday afternoon, but after the topsy-turvy week the pork cutout sector had, one day of higher prices isn't enough security to give traders much confidence. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.47 with a weighted average price of $84.67 on 2,422 head. Pork cutouts totaled 312.62 loads with 288.27 loads of pork cuts and 24.35 loads of trim. Pork cutout value: up $3.04, $97.11. Friday's slaughter is estimated at 484,000 head -- 1,000 head less than a week ago and 4,000 head more than a year ago. Saturday's slaughter is projected to be 225,000 head. The CME lean hog index 11/13/2024: down $0.16, $89.78.
MONDAY'S HOG CALL: Lower. Packers rarely support the cash market aggressively on Mondays, and it's unlikely that they'll need to next week.
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