Wednesday markets
The livestock complex is trending lower into Wednesday’s afternoon, as the market isn’t seeing much interest from traders. The cash cattle market has performed extremely well, however, as prices have jumped $3-4 higher compared to last week’s weighted average. December corn is up 3.75 cents per bushel, and December soybean meal is up $1.40. The Dow Jones Industrial Average is up 13.17 points.
It’s a glorious day for the cash cattle market, as feedlots have again been rewarded for their patience. There’s been light movement in the North at $245 dressed, which is $3 higher than last week’s weighted average. Some cattle have traded in the South for $154-155, which is roughly $4 higher than last week’s weighted average. This week’s cash cattle market shows just how important it is for cattlemen to stay engaged in the marketplace, even during the holidays, because you never know when prices are going to be advanced higher.
With packers continuing to run aggressive processing speeds and front-end supplies of market-ready cattle thin, packers had to jump in and support the market even though it’s a holiday week. It’s somewhat disappointing to see that the futures complex isn’t rallying alongside the cash cattle market, as one would think that this development is just the fundamental support that traders were after.
More likely than not, Wednesday’s unenthusiastic trade throughout the futures complex stems from the fact that the market is only being thinly traded, as some participants have already stepped out the door for a long weekend.
December live cattle are down 20 cents at $153.60, February live cattle are down 92 cents at $155.50 and April live cattle are down 77 cents at $159.12.
Boxed beef prices are mixed: Choice is down $3.22 ($253.41), and Select is up 33 cents ($234.51) with a movement of 85 loads.
Feeder cattle
Even the slightest advancement in the corn sector is enough to push feeders lower, even as the cash cattle market charges higher. As the market approaches the noon hour, the nearby corn contracts are trending 2-3 cents higher, which is just enough pressure to send feeders crashing lower.
January feeders are down $1.97 at $179.70, March feeders are down $1.80 at $182.77 and April feeders are down $1.72 at $186.20. Unless the rally in the grain complex subsides, it’s not likely that the feeder cattle market will turn around ahead of closing, as its market is thinly traded and traders could be stepping out early for Thanksgiving festivities. — ShayLe Stewart, DTN livestock analyst
The WLJ office will be closed Thursday, Nov. 24, and Friday, Nov. 25, for Thanksgiving. Happy Thanksgiving to you and yours!
