Strong losses quickly developed across livestock
markets through the morning Tuesday. This added to the softness in the
complex as traders continue to be limited by the overall lack of
direction in the market. Moderate gains are trying to develop in nearby
live cattle futures, but activity levels remain sluggish. Corn prices
are higher in light trade. March corn futures are 1/2 cent per bushel
higher. Stock markets are lower in light trade. The Dow Jones is 44
points lower while Nasdaq is down 40 points.
LIVE CATTLE:
Live cattle futures prices are at midday. The
overall lack of follow-through pressure in the rest of the market that
pulled live cattle futures lower Tuesday morning has eased in nearby
contracts. This could bring additional support to the market late in the
session, helping to stabilize price levels ahead of the Christmas
break. Cash cattle activity still remains quiet with just a couple token
bids in the North seen at $189 dressed basis. This is not nearly enough
to even get the ball rolling at this point. Asking prices are generally
undefined, but prices are expected to start out somewhere around $122
live and $193 dressed and higher. Active trade is not expected until
Thursday or Friday, but wide futures shifts could change that quickly.
Beef cutouts at midday are higher, $0.54 Higher (select) and up $0.58
per cwt (choice) with light movement of 71 total loads reported (32
loads of choice cuts, 26 loads of select cuts, four loads of trimmings,
nine loads of ground beef).
FEEDER CATTLE:
Triple-digit losses quickly developed in feeder
cattle trade early Tuesday morning. But the weakness has not been well
supported as prices have backed away from session lows, even though
triple-digit losses continue in several contract months. Some additional
pressure is likely in the market as traders look for increased market
softness.
LEAN HOGS:
Moderate to strong losses have developed across
the lean hog futures complex with increased market pressure likely the
rest of the week if additional losses are seen in cattle trade as well
as hog market fundamentals. Additional pressure is developing in all
contracts, but the most aggressive pressure is in deferred futures. Cash
prices are lower on the National Direct morning cash hog report. The
weighted average price is down $0.29 at $56.76 per cwt with the range
from $53.50 to $57.20 on 6,679 head reported sold. Cash prices are lower
on the Iowa/Minnesota Direct morning cash hog report. The weighted
average price is down $0.70 at $54.81 per cwt with the range from $54.50
to $55.50 on 3,865 head reported sold. The National Pork Plant Report
posted 230 loads selling with carcass values gaining $0.40 per cwt. Lean
hog index for 12/15 is at $63.18 down $0.93 with a projected two-day
index of $62.71, down $0.47.
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