Live cattle have moved in a somewhat tight trading range with futures at the top end of the trading range. The December contract is priced at new contract highs. Later contracts are tipping a bit to the downside, but still maintaining an uptrend. Hogs continue to struggle, breaking through technical support earlier in the day. March corn is struggling with futures down 4 1/2 cents. Soybeans are also on the defensive, posting losses of 3 cents. Strong export sales were not enough to uncover aggressive buying.
LIVE CATTLE:
The trend is up, providing a better outlook for 2019 prices. Lower prices earlier in the day have turned higher, pushing at the highs. Futures contracts through April are above $120. Cash cattle trade is expected to be steady with last week. The negativity of the stock market moving to the lowest level of the year does provide some concern, but the market is taking that in stride. Boxed beef cut-outs at midday were higher. Choice increased $0.92 to the value of $212.61 with select at $205.26, up $0.51. Movement of 58 loads was reported (34 loads of choice cuts, 6 loads of select cuts, 7 loads of trimmings, and 11 loads of ground beef).
FEEDER CATTLE:
Futures are trying to regain the losses suffered on Monday, but remain entrenched in a sideways pattern. The spread between feeder cattle and live cattle continues to narrow. Futures have been on both sides of unchanged with contracts showing solid strength at midday.
LEAN HOGS:
Hogs continue to struggle as lower cash markets do not help the search for price support or buyer interest. The negative influence of the stock market is apparent. New lows for the current downtrend open the way for further selling. The carcass value declined $1.26 to $70.74. The National Pork Plant report posted 173 loads selling on the morning report. The lean hog index for 12/18 is $55.00, down $0.07 with a projected two-day index of $54.65, down $0.35.
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