GENERAL COMMENTS:
It was a quiet, uneventful day for the livestock complex as the contracts all drifted lower through Wednesday's close, and still no cash cattle trade has developed. Packer interest should improve on Thursday. March corn is down 2 1/4 cents per bushel and January soybean meal is up $1.50. The Dow Jones Industrial Average is up 308.51 points.
LIVE CATTLE:
It was another quiet day for the live cattle complex as the market saw very little action develop as the futures complex closed lower, boxed beef prices closed lower, and no sizeable cash cattle sales developed throughout Wednesday's trade either. More than anything traders seem to be holding their breath, waiting to see if they could potentially trade the market higher later this week if cash prices do trade higher. There were a few bids offered throughout the day in Nebraska at $190 live and $295 dressed, but feedlot managers are looking to see their showlists for more than that. Asking prices in the South remain firm at $192 to $194 and are still not established in the North. December live cattle closed $0.10 lower at $188.37, February live cattle closed $0.75 lower at $188.32 and April live cattle closed $0.65 lower at $190.50.
Wednesday's slaughter is estimated at 125,000 head -- 1,000 head more than a week ago and 1,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $2.50 ($308.33) and select up $2.37 ($277.70) with a movement of 155 loads (110.28 loads of choice, 25.00 loads of select, 8.14 loads of trim and 11.43 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. Given that feedlot managers sit in a position where they're current with their showlists, I believe they'll be more apt to roll cattle over than they will be to sell cattle for cheaper money.
FEEDER CATTLE:
The feeder cattle complex closed slightly lower as traders continue to wait for developments to surface from this week's fed cash cattle trade. Traders have been incredibly supportive over the last two weeks of the feeder cattle market and although fundamental support in the countryside remains incredible in terms of buyer demand for both feeders and calves – traders want to see support, especially from the fed cash cattle market. As of this point, no trade has developed, which led traders to allow the contracts to close slightly lower through today's end. January feeders closed $2.35 lower at $256.95, March feeders closed $1.57 lower at $255.70 and April feeders closed $1.42 lower at $256.70. At Philip Livestock Auction in Philip, South Dakota, compared to their last sale two weeks ago, feeder steers weighing 400 to 450 pounds sold $15.00 higher, steers weighing 450 to 500 pounds traded $8.00 to $10.00 higher, steers weighing 500 to 550 pounds sold $15.00 higher, steers weighing 550 to 650 pounds sold $8.00 to $10.00 higher, and steers weighing 650 to 700 pounds traded $10.00 to $15.00 stronger. Feeder cattle supply over 600 pounds was 40%. The CME feeder cattle index 12/3/2024: up $0.44, $259.82.
LEAN HOGS:
Without the support of stronger pork cutout values, it comes as little surprise to see that the lean hog complex yet again closed lower. The futures complex has been wildly supported by traders as most of the nearby contracts are trading at contract highs, but without more fundamental support, traders simply can't justify pushing the contracts any higher. December lean hogs closed $0.75 lower at $82.50, February lean hogs closed $1.50 lower at $86.35 and April lean hogs closed $1.32 lower at $91.00. But today the belly wasn't to blame for the carcass price's lower end, as the bell closed $3.57 higher. It was the loin's $2.41 decline, mixed with the $2.37 drop in the butt and the picnic's $2.00 decline which pressured the carcass price. Hopefully, Thursday's export report will yield something fruitful. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.73 with a weighted average price of $87.62 on 5,580 head. Pork cutouts totaled 340.09 loads with 278.21 loads of pork cuts and 61.89 loads of trim. Pork cutout values: down $0.01, $89.60. Wednesday's slaughter is estimated at 489,000 head -- 1,000 head more than a week ago and 5,000 head more than a year ago. The CME lean hog index 12/2/2024: down $0.30, $84.06.
THURSDAY'S HOG CALL: Lower. Given that packers have now been aggressive for two days in this week's cash market, it's likely that they've fulfilled the bulk of their needs this week already and that they won't be very aggressive later this week.
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