GENERAL COMMENTS:
By Friday's end, the livestock complex closed mixed as traders felt it safest to let next week's market hash out more of the market's direction. And no new sales were reported in the cash cattle market. March corn is down 1 1/2 cents per bushel and January soybean meal is down $3.30. The Dow Jones Industrial Average is down 86.06 points.
From Friday to Friday, livestock futures scored the following changes: December live cattle up $6.28, February live cattle up $5.85; January feeder cattle up $1.82, March feeder cattle up $3.00; December lean hogs up $0.43, February lean hogs down $1.72; December corn down $0.01, March corn up $0.02.
LIVE CATTLE:
The live cattle complex closed mixed as the market's nearby contracts continued to rally on the strong fundamental support that came from the fed cash cattle market's rally this week and the uptick in boxed beef prices late in the week as well. December live cattle closed $1.52 higher at $193.65, February live cattle closed $1.17 higher at $192.02 and April live cattle closed $0.82 higher at $193.00. It was deserving and utterly incredible to watch the live cattle market break out of its sideways trading range this past week and pressure prices not last tested since March. But with the fed cash cattle market trading at $300 plus in the North and $190 plus in the South, there was plenty of support for traders to feel confident in. Throughout the week Southern live cattle traded at mostly $191 to $192, and Northern dressed cattle traded anywhere from $295 to $311, with the high end of the sales being to Regional packers, but the majority of the market's trade was at $300 to $304.
Friday's slaughter is estimated 115,000 head -- 2,000 head less than a week ago and 5,000 head less than a year ago. Saturday's slaughter is projected to be around 5,000 head. The week's total slaughter is estimated at 609,000 head -- 5,000 head less than a week ago and 38,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.15 ($316.39) and select up $3.38 ($283.86) with a movement of 123 loads (85.82 loads of choice, 17.51 loads of select, zero loads of trim and 19.93 loads of ground beef).
MONDAY'S CATTLE CALL: Steady to somewhat higher. It feels baffling and somewhat bewildering to write that prices could be higher again next week when Southern live cattle traded for $191-$192 and dressed sales were above $300, but based on the USDA week's totals, packers didn't get very many cattle bought this week which could pressure them into having to pay up again next week.
FEEDER CATTLE:
The feeder cattle complex rounded out the day lower but that's not to say that traders were lackadaisical in the marketplace this past week. It was thrilling to watch the spot January contract rally up to the market's resistance at $260 which was undoubtedly done because of the additional support this past week from the fed cattle market's rally and the continued support of strong buyer demand for calves and feeders. Today's lower end simply came as traders weren't willing to hold the contract at the market's resistance point of $260, which will likely be a threshold that traders dance with again next week. January feeders closed $0.70 lower at $257.65, March feeders closed $0.90 lower at $257.67 and April feeders closed $0.70 lower at $258.52. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week feeder steers and heifers sold $3.00 to $8.00 lower, and steer and heifer calves traded $7.00 to $12.00 lower. Slaughter cows traded $1.00 lower and slaughter bulls sold $5.00 lower. Feeder cattle supply over 600 pounds was 45%. The CME feeder cattle index 12/12/2024: down $0.48, $262.59.
LEAN HOGS:
Through Friday's end, the lean hog complex was able to continue with its rally as thankfully the market's dip earlier this week allowed for technical footing to again be found in the marketplace, and then later this pork demand strengthened which helped fuel the market's move even more. February lean hogs closed $1.12 higher at $85.60, April lean hogs closed $1.30 higher at $89.75 and June lean hogs closed $1.15 higher at $100.92. Again, this afternoon the belly was the biggest reason why the carcass price closed higher as it alone jumped $8.99 higher, but most of the other cuts closed higher too as the only major cut to close lower was the rib. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.09 with a weighted average price of $78.93 on 2,659 head. Pork cutouts totaled 275.09 loads with 247.84 loads of pork cuts and 27.25 loads of trim. Pork cutout values: up $2.30, $94.61. Friday's slaughter is estimated at 474,000 head -- 6,000 head less than a week ago and 2,000 head less than a year ago. Saturday's slaughter is projected to be around 163,000 head. The CME lean hog index 12/11/2024: up $0.31, $83.92.
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