GENERAL COMMENTS:
It was another rip-roaring rallying day for the cattle complex as traders continue to dive into both the live cattle and feeder cattle markets which is helping propel the contracts higher despite the market's fundamentals being somewhat exhausted. Meanwhile, the lean hog complex closed lower yet again as traders hope to see better market fundamentals. December corn is down 2 cents per bushel and December soybean meal is down $1.70. The Dow Jones Industrial Average is down 146.03 points.
LIVE CATTLE:
It was another powerful day for the live cattle contracts as the continued support of traders allowed the market to close anywhere from $1.00 to $2.00 higher. It was especially exciting to see the spot February contract close above the market's 40-day moving average, as that hasn't happened since the commodity market meltdown in early August. December live cattle closed $2.47 higher at $186.57, February live cattle closed $2.02 higher at $188.00, and April live cattle closed $1.50 higher at $290 dressed sales happened in Eastern Nebraska at $290, but the real kicker of those sales was that they're committed for the week of December 9. It's obvious that packers want to continue to hold the cash market from gaining momentum and trading higher, which they're trying to manage by purchasing cattle with time and keeping enough supply around them. Asking prices are noted in the South at $187 to $188 but are still not established for the North.
Tuesday's slaughter is estimated at 126,000 head -- 5,000 head more than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $1.51 ($308.79) and select down $3.54 ($271.91) with a movement of 135 loads (67.50 loads of choice, 44.53 loads of select, 4.15 loads of trim and 18.39 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat lower. With next week being a holiday-shortened schedule, it's unlikely that packers will buy aggressively this week as throughput will be lighter next week.
FEEDER CATTLE:
As time passed the support of traders only grew sweeter and sweeter and by the day's close, the complex successfully ended the day at levels not last seen since before the commodity market meltdown in early August. January feeders closed $2.50 higher at $252.00, March feeders closed $2.62 higher at $251.25 and April feeders closed $2.60 higher at $252.15. As traders continue to flock into the feeder cattle market, its upward potential seems somewhat unbridled at this point as traders have boldly dived into the complex despite the market's fundamentals (besides feeder cattle demand, hence the CME feeder cattle index closing above $253) not being of much help. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week, feeder steers and heifers traded mostly steady. Steer and heifer calves over 450 pounds sold steady, those under 450 pounds traded $10.00 higher. Feeder cattle supply over 600 pounds was 39%. The CME feeder cattle index 11/18/2024: up $1.06, $253.68.
LEAN HOGS:
With fundamental support being hard to come by in the lean hog market right now, it again comes as no surprise that the complex rounded out the day mostly lower. The market's nearby contracts closed lower but some of the furthest deferred months were able to close mildly higher. December lean hogs closed $0.47 lower at $79.55, February lean hogs closed $0.40 lower at $82.87 and April lean hogs closed $0.32 lower at $87.10. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.83 with a weighted average price of $82.49 on 5,365 head. Pork cutouts totaled 393.37 loads with 330.97 loads of pork cuts and 62.40 loads of pork cuts. Pork cutout values: down $2.39, $94.68. Tuesday's slaughter is estimated at 489,000 head -- steady with a week ago and 1,000 head more than a year ago. The CME lean hog index 11/15/2024: down $0.78, $88.49.
WEDNESDAY'S HOG CALL: Steady. Packers were slightly more aggressive in today's cash market, but it's likely that they still need more hogs.
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