GENERAL COMMENTS:
Traders grew impatient waiting for the cash cattle market to trade cattle, but shortly after the day's closing bell, Northern dressed sales began to be reported at $297 which is $2.00 higher than last week's weighted average. Southern live cattle haven't traded yet, but prices are likely to be higher as well. March corn is up 5 cents per bushel and January soybean meal is down $0.80. The Dow Jones Industrial Average is down 248.33 points.
Thursday's export sales report stated that beef net sales of 100 mt for 2024 -- a marketing year low -- were down 97% from the previous week and 99% from the prior 4-week average. The three primary buyers were Japan (1,700 mt), Canada (700 mt) and China (600 mt). Pork net sales of 35,200 mt for 2024 were up noticeably from the previous week and from the prior 4-week average. The three primary buyers were Mexico (15,400 mt), South Korea (9,100 mt) and China (3,400 mt).
LIVE CATTLE:
The live cattle complex waited, and waited, and although hindsight is 20/20, the market should have been a little more patient because shortly after the day's closing bell, dressed cattle sales began to trickle in and low and behold, prices were again higher. Some light trade has been reported in Nebraska at $297 which is $2.00 higher than last week's weighted average, but at this point, still no live cattle have traded. Bids of $190 were offered throughout the day, but feedlot managers remain committed to seeing their asking price of $192 to $194 met. Traders wanted to believe that the cash cattle market was going to indeed be able to trade higher again this week, but without any sales developing ahead of the day's close, they grew anxious and allowed the contracts to drift lower ahead of Thursday's close. December live cattle closed $1.40 lower at $186.97, February live cattle closed $2.00 lower at $186.32 and April live cattle closed $1.95 lower at $188.55.
Thursday's slaughter is estimated at 118,000 head -- incomparable to last week and 8,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.49 ($307.84) and select down $0.60 ($277.10) with a movement of 112 loads (68.84 loads of choice, 18.05 loads of select, 7.77 loads of trim and 17.03 loads of ground beef).
FRIDAY'S CATTLE CALL: Higher. Given that a few North sales have been marked higher than last week's weighted average, it's likely that feedlot managers will remain patient and hold out until packers offer the money they're looking for.
FEEDER CATTLE:
The feeder cattle complex also suffered through Thursday's trade as the market was hoping to find better fundamental support throughout the day. However, with the fed cattle market not trading cattle until after the day's closing bell, traders were given little support to work with. January feeders closed $2.02 lower at $254.92, March feeders closed $2.10 lower at $253.60 and April feeders closed $2.07 lower at $254.62. But given that some light fed cattle sales were reported after the futures market's close for higher prices, there's a chance that the contracts could trade higher come Friday. At Kist Livestock Auction in Mandan, North Dakota compared to last week feeder steers weighing 500 to 550 pounds sold $8.00 higher, steers weighing 600 to 650 pounds traded $7.00 lower, steers weighing 650 to 700 pounds sold $13.00 lower, but steers weighing 700 to 750 pounds sold steady. Feeder heifers weighing 400 to 450 pounds sold $12.00 lower, heifers weighing 500 to 550 pounds sold $3.00 lower and heifers weighing 600 to 650 pounds traded $2.00 higher. Demand was especially strong for calves that could go to pasture next spring. Feeder cattle supply over 600 pounds was 39%. The CME feeder cattle index 12/4/2024: up $0.61, $260.47.
LEAN HOGS:
The lean hog complex was able to round out the day mostly higher, but the market only saw half-hearted, lackluster support from traders. More than anything, traders seemed to have found some technical footing in Wednesday's market as the contracts opened higher Thursday morning and were able to maintain their rallying momentum through closing. Thursday's morning export report was somewhat helpful, but unfortunately pork cutout values again closed lower. February lean hogs closed steady at $86.35, April lean hogs closed $0.15 higher at $91.15 and June lean hogs closed $0.22 higher at $101.62. Thursday's slaughter is estimated at 489,000 head -- incomparable to last week and 5,000 head more than a year ago. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.28 with a weighted average price of $85.34 on 2,135 head. Pork cutouts totaled 277.74 loads with 240.26 loads of pork cuts and 37.48 loads of trim. Pork cutout values: down $0.96, $88.64. The CME lean hog index 12/3/2024: up $0.01, $84.07.
FRIDAY'S HOG CALL: Lower. Given the trade that the market's seen earlier this week, it's likely that the bulk of this week's trade is done with.
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