LIVESTOCK:
The cattle contracts closed lower as Friday's export data cast a lousy, unsupportive tone across the market, but the lean hog complex was able to rally as its market saw phenomenal export support. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.50 with a weighted average of $87.29 on 3,971 head.
From Friday to Friday, livestock futures scored the following changes: October live cattle up $1.63, December live cattle down $0.28; October feeder cattle down $0.92, November feeder cattle down $0.85; October lean hogs up $0.42, December lean hogs up $5.10; December corn up $0.06, March corn up $0.05.
December live cattle closed $0.15 lower at $147.77, February live cattle closed $0.60 lower at $151.10 and April live cattle closed $0.77 lower at $154.82.
Friday's slaughter is estimated at 112,000 head, 6,000 head less than a week ago and 7,000 head more than a year ago. Saturday's slaughter is projected to be around 37,000 head. This week's slaughter is estimated at 660,000 head, 4,000 head less than a week ago and 17,000 head more than a year ago.
Boxed beef prices closed higher: choice up $0.45 ($246.98) and select up $1.08 ($216.94) with a movement of 104 loads (62.47 loads of choice, 15.40 loads of select, 6.87 loads of trim and 19.07 loads of ground beef). The choice/select spread sits at $30.04. Throughout the week, choice cuts averaged $246.31 (down $0.58 from a week ago) and select cuts averaged $214.74 (down $4.37 from last week) and the week's total movement of cuts, grinds and trim totaled 722 loads.
October feeders closed $0.95 lower at $173.80, November feeders closed $1.32 lower at $174.77 and January feeders closed $1.20 lower at $175.10.
GRAINS:
December corn closed down 8 cents and July corn was down 8 1/4 cents. November soybeans closed down 12 cents and July soybeans were down 12 1/2 cents. December KC wheat closed down 30 cents, December Chicago wheat was down 32 1/2 cents and December Minneapolis wheat was down 24 3/4 cents.
For the week:
December corn closed up 6 1/2 cents and July corn was up 3 3/4 cents. November soybeans ended up 16 3/4 cents and July soybeans were up 10 3/4 cents. December KC wheat closed down 16 1/2 cents, December Chicago wheat was down 20 1/2 cents and December Minneapolis wheat was down 13 3/4 cents.
DAIRY:
November Class III futures closed limit down. It has been some time since milk futures closed limit down. There have been days when price touched limit down, but they did not remain there. The large decline of barrels, coupled with the idea demand may not be as good as it needs to be due to inflation, sent the market tumbling. This weakness will be difficult to overcome even if underlying cash prices show strength. Traders are now accustomed to limited strength before further weakness surfaces. Milk futures have been dropping and then climbing back above $20 a few times in 2023 contracts. The ability to climb back will become less as the year progresses. Forward holiday buying may be about finished, leaving regular demand to carry the baton. That demand may be lower than usual for this time of year. The World Agricultural Supply and Demand report showed USDA increasing estimated milk prices next year. However, average prices for Class III are now estimated to be $2.10 below this year. Class IV next year is estimated to be $3.60 lower. The all-milk price is estimated to be $2.70 lower than the average price this year. This certainly is not something to look forward to. However, much can change over the next year.
More: Friday Closing Dairy Market Update - Milk Futures Take a Beating
FORAGE: This Week's Hay Markets Here
OUTSIDE MARKETS:
The December U.S. Dollar Index is trading up 0.97 at 113.23. November crude oil fell $3.50 per barrel to $85.61. The Dow lost 404 points, closing at 29,635, while the NASDAQ fell 328 points, closing at 10,321. December gold is down $29.30 at $1,647.70, December silver is down $0.80 at $18.12 and December copper is down $0.0355. November ultra-low sulfur diesel is down $0.1017, November RBOB gasoline is down $0.0806 and November natural gas is down $0.311.
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