GENERAL COMMENTS:
The livestock complex rounded out the day higher thanks to the added support of stronger cash cattle prices and better demand for pork cuts. Heading into next week's market, the cash cattle complex could trade higher again as packers weren't overly aggressive in this week's market. March corn is up 5 cents per bushel and January soybean meal is down $3.70. The Dow Jones Industrial Average is down 123.19 points
From Friday-to-Friday, livestock contracts scored the following changes: December live cattle down $0.60, February live cattle down $2.45; January feeder cattle down $3.65, March feeder cattle down $3.95; December lean hogs up $1.22, February lean hogs up $1.00; December corn up $0.08, and March corn up $0.07.
LIVE CATTLE:
All in all, it was a positive day for the live cattle complex as the long waited for cash cattle trade was indeed higher again this week. It was surprising to see the spot February and April 2025 contracts both close slightly lower. But as traders continue to grapple with the decision on either or not to follow the market fundamentals, some mixed messages are expected from the technical side. December live cattle closed $0.40 higher at $187.37, February live cattle closed $0.15 lower at $186.17, and April live cattle closed $0.25 lower at $188.30. Throughout the week, Southern live cattle traded anywhere from $190 to $191, which is steady to $2.00 higher than last week's weighted average. Northern dressed cattle traded for mostly $297, which is $2.00 higher than last week's weighted average. This week's movement was relatively thin based on what USDA reports showed, so it will be important to check Monday's official data to see how many cattle traded because if packers were too light in purchasing cattle this week, they may have to be extra aggressive in next week's cash market to ensure they aren't short bought.
Friday's slaughter is estimated at 117,000 head -- steady with a week ago and 4,000 head less than a year ago. Saturday's slaughter is projected to be around 12,000 head.
Boxed beef prices closed mixed: choice up $4.20 ($312.04) and select down $0.37 ($276.73) with a movement of 125 loads (80.39 loads of choice, 19.47 loads of select, 10.91 loads of trim and 14.47 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Next week's cash cattle trade will likely be delayed until the later part of the week, but prices will likely again be steady to somewhat higher.
FEEDER CATTLE:
The feeder cattle complex was thankfully able to close mildly higher Friday as the market was comforted to see strong cash cattle prices again this week. The feeder cattle complex has been the cattle market's driving force before this past week, but traders grew tired of bearing all the market's weight and looked around for continued support before they confidently advanced the market again. January feeders closed $0.90 higher at $255.82, March feeders closed $1.07 higher at $254.67, and April feeders closed $0.95 higher at $255.57. The Oklahoma Weekly Cattle Auction Summary shared that feeder steers and heifers traded $5.00 to $10.00 higher compared to last week; steer calves over 450 pounds sold $8.00 to $13.00 higher, but steer calves under 450 pounds sold $30.00 higher. Heifer calves sold $8.00 to $12.00 higher. Feeder cattle supply over 600 pounds was 51%. The CME Feeder Cattle Index 12/5/2024: up $1.36, $261.83.
LEAN HOGS:
The lean hog complex was finally able to get a leg up in this week's market thanks to the added support of stronger pork cutout values. The belly was the biggest driving factor for Friday's higher carcass price as it alone jumped $6.38, but the loin also jumped $3.05 higher which helped as well. December lean hogs closed $0.87 higher at $83.30, February lean hogs closed $0.97 higher at $87.32, and April lean hogs closed $0.70 higher at $91.85. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $5.21 with a weighted average price of $80.13 on 469 head. Pork cutouts totaled 317.66 loads with 294.42 loads of pork cuts and 23.24 loads of trim. Pork cutout values: up $2.52, $91.16. Friday's slaughter is estimated at 480,000 head -- 47,000 head more than a week ago and 4,000 head more than a year ago. Saturday's slaughter is projected to be around 185,000 head. The CME Lean Hog Index 12/4/2024: down $0.14, $83.83.
MONDAY'S HOG CALL: Steady. Packers will need to be aggressive at some point next week to avoid being short bought, but they rarely actively seek a plethora of hogs on a Monday.
No comments:
Post a Comment