GENERAL COMMENTS:
Friday ended up being another supportive trading day for the livestock contracts as all three markets rounded out the day higher. A few more cash cattle sales were reported, but they remained steady with the week's earlier trend. December corn is down 1 1/4 cents per bushel and December soybean meal is up $1.50. The Dow Jones Industrial Average is up 426.16 points.
From Friday to Friday, livestock futures scored the following changes: December live cattle up $3.83, February live cattle up $2.95; January feeder cattle up $7.08, March feeder cattle up $7.47; December lean hogs up $2.18, February lean hogs up $2.77; December corn up $0.01, March corn down $0.00.
LIVE CATTLE:
Traders didn't seem to mind this week that a Cattle on Feed report was set to be released Friday afternoon as they continued to support the live cattle contracts through Friday's closing bell. All in all, it's likely that the market will find today's Cattle on Feed report to be neutral as most of the data was closely aligned with pre-report estimates. Placements were slightly higher but given the fundamental strength in the market currently, I don't believe traders will spend much time stressed over the data on Monday. December live cattle closed $1.17 higher at $186.77, February live cattle closed $0.77 higher at $188.20 and April live cattle closed $0.42 higher at $189.95. Throughout the week Southern live cattle traded at $186 which is $1.00 higher than the previous week's weighted average and Northern cattle traded at $290 which is steady with the previous week's weighted average.
Friday's slaughter is estimated at 117,000 head -- 3,000 head less than a week ago and 5,000 head more than a year ago. Saturday's slaughter is projected to be around 18,000 head. The week's total slaughter is estimated at 631,000 head -- 25,000 head more than a week ago and incomparable to a year ago.
Boxed beef prices closed mixed: choice up $0.62 ($307.41) and select down $0.85 ($272.07) with a movement of 98 loads (57.75 loads of choice, 27.65 loads of select, 2.65 loads of trim and 10.11 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Given that it will be a holiday shortened week, I don't expect to see packers overly active in the cash market.
FEEDER CATTLE:
It was an utterly incredible week for the feeder cattle complex as the market powered higher every single day on the futures complex and the support in which traders saw from the countryside was impeccable as buyers continue to aggressively seek both calves and feeders. January feeders closed $1.85 higher at $254.30, March feeders closed $1.02 higher at $253.12 and April feeders closed $1.22 higher at $254.35. But potentially the two biggest hitting factors that I'd like to highlight for you ahead of the weekend is that the surge in prices this past week pushed the market back to levels not last seen since the equity market meltdown early in August, and the price in which the CME feeder cattle index closed as ($254.54) as it's the truest testament of just how strong buyer demand is. The Oklahoma Weekly Cattle Auction Summary share that compared to last week and throughout the entire state feeder cattle and claves traded $2.00 to $6.00 higher. Slaughter cows sold $3.00 to $6.00 lower and slaughter bulls traded $4.00 lower. Feeder cattle supply over 600 pounds was 51%. The CME feeder cattle index 11/21/2024: up $0.27, $254.54.
LEAN HOGS:
Even though the cash hog market didn't amount to much throughout the day and that pork cutout values again closed lower, traders advanced the lean hog contracts higher through the day's end. December lean hogs closed $0.87 higher at $81.67, February lean hogs closed $1.02 higher at $85.67 and April lean hogs closed $0.90 higher at $89.82. The rib was the biggest limiting factor for today's carcass price as it alone dropped $6.68. Hog prices averaged $82.72 on the Daily Direct Afternoon Hog Report, with 1,753 head selling. Pork cutouts totaled 322.93 loads with 278.17 loads of pork cuts and 44.76 loads of trim. Pork cutout values: down $1.30, $91.77. Friday's slaughter is estimated at 485,000 head -- 1,000 head more than a week ago and incomparable to a year ago. Saturday's slaughter is projected to be around 138,000 head. The CME lean hog index 11/20/2024: down $0.39, $87.44.
MONDAY'S HOG CALL: Steady. Given that next week is a holiday shortened week for thanksgiving, I don't foresee packers being very aggressive in the cash hog market.
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