GENERAL COMMENTS:
The livestock complex endured another mixed day where the lean hog complex rallied but the cattle contracts sank backward as traders' support wasn't as plentiful. New showlists appear to be somewhat higher in Texas, and higher in Kansas, and Nebraska/Colorado. March corn is down 1/2 cent per bushel and January soybean meal is down $4.00. The Dow Jones Industrial Average is down 128.65 points.
LIVE CATTLE:
It was a mostly uneventful, typical Monday for the live cattle complex as traders let the live cattle contracts drift slightly lower ahead of Monday's close as the market no longer saw unbridled, charging support from the feeder cattle complex. December live cattle closed $0.45 lower at $187.52, February live cattle closed $0.70 lower at $187.92 and April live cattle closed $0.65 lower at $190.12. Thankfully the market maintained its position above its 40-day moving average and will likely chop sideways throughout the rest of the week until traders better understand what will come of this week's cash cattle trade. New showlists appear to be somewhat higher in Texas, and higher in Kansas, and Nebraska/Colorado. Monday's slaughter is estimated at 117,000 head -- 3,000 head less than a week ago and 7,000 head less than a year ago.
Last week Southern live cattle traded at mostly $190 which is $4.00 higher than last week's weighted average, and Northern dressed cattle traded at mostly $291 to $306, but mostly at $295 which is $5.00 higher than last week's weighed average. Last week's negotiated cash cattle trade totaled 79,753 head. Of that, 69% (55,128 head) were committed to the nearby delivery, while the remaining 31% (24,625 head) were committed to the deferred delivery.
Boxed beef prices closed higher: choice up $2.49 ($313.01) and select up $2.70 ($277.00) with a movement of 80 loads (55.72 loads of choice, 17.48 loads of select, zero loads of trim and 7.21 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat higher. Given that packers were notably more aggressive in last week's cash cattle trade, it leads me to believe that they're short bought and going to need more cattle again this week.
FEEDER CATTLE:
The feeder cattle complex dove lower shortly after Monday's start as traders elected to capitalize on the opportunity of some quick profit-taking as they were worried about the technical pressure of the market's resistance at $260 being too much to bear. But don't take today's lower break in the feeder cattle contracts to mean that the market is done rallying as feeder cattle prices in the countryside were widely supported. More than anything, today's lower break was a technical move and could be recovered later this week if fundamental support remains ample. January feeders closed $2.62 lower at $256.85, March feeders closed $3.07 lower at $255.55 and April feeders closed $2.65 lower at $256.97. At Joplin Regional Stockyards in Carthage, Missouri compared to last week and at their midsession point, feeder steers weighing under 650 pounds were well anywhere from $5.00 to $30.00 higher and heavier weights were trading $2.00 to $10.00 lower. Feeder heifers under 500 pounds were selling $10.00 to $20.00 higher with heavier weights trading $10.00 lower. Feeder cattle supply over 600 pounds was 53%. The CME feeder cattle index 11/29/2024: up $2.81, $257.13.
LEAN HOGS:
With the support of better consumer demand and seeming to have found better technical footing in the marketplace, the lean hog complex was able to rally all throughout Monday's trade. December lean hogs closed $1.15 higher at $83.22, February lean hogs closed $1.62 higher at $87.95 and April lean hogs closed $1.72 higher at $92.47. Seasonal buying is undoubtedly evident throughout today's cutout report as the ham was the biggest leading cut with its $7.78 gain. However, it was encouraging to see that the only cut that posted a lower ending price was the butt, which was down just $1.64. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.18 with a weighted average price of $83.97 on 1,260 head. Pork cutouts totaled 298.21 loads with 235.61 loads of pork cuts and 62.61 loads of trim. Pork cutout values: up $2.35, $92.66. Monday's slaughter is estimated at 489,000 head -- steady with a week ago and 3,000 head more than a year ago. 11/27/2024: down $0.30, $85.21.
TUESDAY'S HOG CALL: Higher. Given that less than 2,000 head traded throughout the day, it's likely that packers will need to be more aggressive on Tuesday to avoid being short bought.
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