GENERAL COMMENTS:
It was a successful day for the livestock contracts as all three of the markets closed higher by Friday's ending bell. And to help matters even more, it was reassuring for cattlemen to find the afternoon's Cattle on Feed report neutral to somewhat bullish. March corn is up 5 1/2 cents per bushel and March soybean meal is up $11.20. The Dow Jones Industrial Average is up 498.02 points.
From Friday to Friday livestock futures scored the following changes: December live cattle down $2.32, February live cattle down $3.63; January feeder cattle down $2.05, March feeder cattle down $1.85; February lean hogs up $0.33, April lean hogs up $0.78; March corn up $0.04, May corn up $0.03.
LIVE CATTLE:
It was relieving to see the live cattle contracts close higher as the market has been pressured throughout the vast majority of the week. And it was especially comforting to see the spot February contract close above the market's 40-day moving average as that hopefully indicates that the market won't be subject to more dramatic downward pressure in the days ahead. December live cattle closed $0.97 higher at $191.32, February live cattle closed $1.85 higher at $188.40 and April live cattle closed $1.52 higher at $190.12. No new cash cattle trade developed throughout the day as most of the week's buying was done on Thursday. This week Northern dressed business has had a huge range of $302 to $315, but mostly at $305, $2 higher than last week's weighted average basis Nebraska. While Southern live deals have been marked at $191, fully steady with last week's weighted averages.
Friday's slaughter is estimated at 117,000 head -- 2,000 head more than a week ago and 1,000 head less than a year ago. Saturday's slaughter is projected to be around 15,000 head. The week's total slaughter is estimated at 617,000 head -- 8,000 head more than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $4.84 ($315.85) and select up $1.80 ($285.91) with a movement of 107 loads (65.70 loads of choice, 19.22 loads of select, 9.05 loads of trim and 12.62 loads of ground beef).
MONDAY'S CATTLE CALL: Steady to somewhat higher. Even though next week is a holiday shorted week for Christmas, packers will still need to stay active in the market to avoid becoming short bought.
FEEDER CATTLE:
The feeder cattle complex was able to maintain its higher position through the day's end as the market found it comforting that the live cattle contracts closed higher and that the week's fed cash cattle market traded steady to $2.00 higher as well. Then, later in the afternoon, it was also supportive that the month's Cattle on Feed (COF) report had no alarming discrepancies compared to the pre-report estimates.
January feeders closed $1.12 higher at $255.60, March feeders closed $1.25 higher at $255.82 and April feeders closed $1.30 higher at $256.75. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week and throughout the entire state, feeder steers and heifers traded $3.00 to $8.00 lower and steer and heifer calves sold $7.00 to $12.00 lower. Feeder cattle supply over 600 pounds was 45%. The CME feeder cattle index 12/19/2024: down $0.08, $262.15.
LEAN HOGS:
The lean hog complex was able to power through the day, rallying off the market's newly established support plane earlier this week. February lean hogs closed $2.30 higher at $85.92, April lean hogs closed $1.90 higher at $90.52 and June lean hogs closed $1.30 higher at $102.10. It was also encouraging to see pork cutout values close higher, but the belly played a significant role in that as it alone jumped $13.51 higher and the rib also climbed $3.95 higher. Monday will be a big day for the lean hog complex as the Quarterly Hogs and Pigs report is set to be released. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.50 with a weighted average price of $76.95 on 299 head. Pork cutouts totaled 239.15 loads with 204.89 loads of pork cuts and 34.25 loads of trim. Pork cutout values: up $1.13, $97.28. Friday's slaughter is estimated at 483,000 head -- 9,000 head more than a week ago and 56,000 head more than a year ago. Saturday's slaughter is projected to be around 148,000 head. The CME lean hog index 12/18/2024: up $0.05, $84.21.
MONDAY'S HOG CALL: Lower. Given that it's a holiday shorted week packers won't likely buy much in next week's market.
No comments:
Post a Comment