GENERAL COMMENTS:
The livestock complex is trading mixed into Thursday's noon hour as the market is cautious to get ahead of itself without seeing what develops fundamentally. Bids are currently on the table in the cash cattle market, but feedlot managers have yet to accept any bids. December corn is down 3 1/4 cents per bushel and December soybean meal is down $1.70. The Dow Jones Industrial Average is up 468.75 points
Thursday's export report shared that beef net sales of 14,300 mt for 2024 were up 1% from the previous week and 8% from the prior 4-week average. The three largest buyers were Japan (4,300 mt), South Korea (3,300 mt), and China (2,100 mt). Pork net sales of 18,100 mt for 2024 were down 9% from the previous week but unchanged from the prior 4-week average. The three primary buyers were Mexico (4,100 mt), South Korea (3,300 mt) and Japan (2,000).
LIVE CATTLE:
The live cattle complex continues to hold its breath, seeming to wait to see what develops fundamentally this week in the cash market. It is a fundamental improvement to see boxed beef prices higher, but before traders can find much stability in that price direction change, they need to see multiple days of stronger boxed beef prices which would show consistency from consumers. December live cattle are down $0.22 at $186.07, February live cattle are down $0.15 at $187.77 and April live cattle are up $0.17 at $189.87. In terms of the cash cattle market, the market is seeing a few bids currently being reported at $185 in Kansas, $185 in Colorado and $185 to $187 live in Nebraska, along with $290 dressed in Nebraska. But at this point, feedlot managers have elected to pass on those offers and are hoping to see packer interest improve as time plays on. Asking prices are around $187 to $188 in the South and at $292 plus in the North. Trade could develop this afternoon, but it's just as likely that trade could be delayed until Friday as packers and feedlot managers again will go toe-to-toe this week.
Boxed beef prices are higher: choice up $0.26 ($306.65) and select up $2.56 ($273.55) with a movement of 63 loads (24.07 loads of choice, 12.54 loads of select).
FEEDER CATTLE:
The live cattle complex may be hesitant about trading higher without having seen what the cash cattle market is going to do this week, but the feeder cattle complex seems confident enough with the strong buyer demand in the countryside to moderately advance its contracts again. January feeders are up $1.27 at $253.60, March feeders are up $0.75 at $252.15 and April feeders are up $0.75 at $253.12. Buyer demand in the countryside for both feeders and calves has been utterly impeccable this week and is evidenced by the CME feeder cattle index, which closed Wednesday afternoon at $254.26.
LEAN HOGS:
The lean hog complex is trading mixed into Thursday's noon hour as the market wasn't overly impressed by the morning's export sales report and even though morning pork cutout values are slightly higher, traders are wanting more fundamental reassurance. December lean hogs are down $0.02 at $80.50, February lean hogs are down $0.02 at $84.45 and April lean hogs are up $0.22 at $88.85. Once again, this morning wild swings are currently being seen in the pork cutouts as the belly is up $10.39, but the picnic is down $9.29.
The projected lean hog index for 11/20/2024 is down $0.39 at $87.44, and the actual index for 11/19/2024 is down $0.26 at $87.83. Hog prices on the Daily Direct Morning Hog report are unavailable because no hogs have been traded yet throughout the day. We can see however that the market's five-day rolling average sits at $83.58. Pork cutouts total 183.17 loads with 140.92 loads of pork cuts and 42.25 loads of trim. Pork cutout values: up $0.55, $95.15.
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