GENERAL COMMENTS:
All in all, it was another supportive day for the livestock complex as the contracts closed higher and cash cattle prices traded higher too. Northern dressed cattle traded $2.00 higher compared to last week and Southern live cattle traded $1.00 higher than last week's weighted average. March corn is up 1/4 cent per bushel and March soybean meal is down $4.40. The Dow Jones Industrial Average is down 333.59 points.
From Friday to Friday livestock futures scored the following changes: December live cattle up $2.18, February live cattle up $2.25; January feeder cattle up $5.78, March feeder cattle up $4.73; February lean hogs down $1.77, April lean hogs down $1.00; March corn up $0.08, May corn up $0.10.
Friday's export report beef net sales of 1,100 mt for 2024 were down 85% from the previous week and 81% from the prior 4-week average. The three primary buyers were Japan (1,000 mt), Mexico (500 mt) and South Korea (300 mt). Pork net sales of 7,100 mt for 2024 were down 37% from the previous week and 67% from the prior 4-week average. The three largest buyers were Japan (2,000 mt), Mexico (1,400 mt) and China (1,400 mt).
LIVE CATTLE:
It's utterly incredible to sit back and think about all that the live cattle market has accomplished through 2024 -- and part of that success has been from the relentless commitment of beef demand and feedlot managers' dedication that prices have continued to advance week in and week out even during the holiday, like this past week. The live cattle complex again rounded out the day higher as traders were elated to see cash cattle prices trading higher. December live cattle closed $0.72 higher at $193.50, February live cattle closed $0.55 higher at $190.65 and April live cattle closed $0.75 higher at $193.35. Throughout the week Southern live cattle traded at $192 which is $1.00 higher than last week's weighted average and Northern dressed cattle traded at $307 which is $2.00 higher than last week's weighted average.
Friday's slaughter is estimated at 123,000 head -- 6,000 head more than a week ago and steady with a year ago. Saturday's slaughter is projected to be around 36,000 head. The week's total slaughter is estimated at 434,000 head -- incomparable to a week ago but 66,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.99 ($322.38) and select up $2.36 ($291.13) with a movement of 87 loads (52.66 loads of choice, 15.75 loads of select, 8.08 loads of trim and 10.78 loads of ground beef).
MONDAY'S CATTLE CALL: Higher. With beef demand as strong as it is, packers will likely continue to support the market as they can't afford to be short bought anytime in the near future.
FEEDER CATTLE:
It was a powerful day for the feeder cattle complex as the market was able to successfully close above its long-term resistance of $260 in nearly all of the contracts. Truthfully, I'm surprised to see that the market encapsulated enough power in today's trade to be able to successfully conquer such a barrier. The real test will come next week when traders either decide to continue supporting the complex or once again drop prices lower. January feeders closed $2.07 higher at $261.37, March feeders closed $1.05 higher at $260.55 and April feeders closed $1.02 higher at $261.05. CME feeder cattle index 12/26/2024: down $2.45, $258.32.
LEAN HOGS:
The lean hog complex was able to inch the market higher through Friday's end as traders were thankful for the better consumer support late in the week. And although Friday's afternoon cutout prices dipped slightly lower, all in all, after the Christmas holiday retailers rebuying to again stock their coolers helped pork cutout values and brought additional support to the marketplace. February lean hogs closed $0.05 lower at $84.15, April lean hogs closed $0.27 higher at $89.52 and June lean hogs closed $0.45 higher at $102.00. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.81 with a weighted average price of $77.27 on 1,894 head. Pork cutouts total 241.89 loads with 198.04 loads of pork cuts and 43.84 loads of trim. Pork cutout values: down $0.62, $95.07. Friday's slaughter is estimated at 487,000 head -- 4,000 head more than a week ago and 9,000 head more than a year ago. Saturday's slaughter is projected to be around 413,000 head. CME lean hogs index 12/23/2024: up $0.35, $85.10.
MONDAY'S HOG CALL: Steady. Given that next week's market will also be short because of the New Year holiday there's a chance that packers could be somewhat aggressive in Monday's cash hog market.
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