GENERAL COMMENTS: Cash cattle markets remained sluggish with bids and asking prices hard to pin down in most areas. A few cattle sold in Iowa at $118 per cwt Tuesday afternoon. But this is not even enough to establish a good market test. Even though bids may start to become more evident midweek, it may be Friday before active trade is seen. According to the closing report, the national hog base is $0.58 lower compared with the Prior Day settlement ($42-$47.89, weighted average $46.58). Corn futures were higher in light activity, with March futures 1 1/2 higher. The Dow Jones Index was 62 points lower with Nasdaq down 16 points.
LIVE CATTLE: Strong gains developed through the live cattle market with futures ending $0.47 to $1.02 higher. The February futures contract led the market higher with a $1.02-per-cwt rally. The underlying support is helping to spark some additional interest through the entire market. Beef cut-outs: mixed, $0.45 higher (select, $201.39) to down $0.96 (choice, $214.46) with light demand and offerings, 133 loads (99 loads of choice cuts, 18 loads of select cuts, 6 load of trimmings, 10 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL: Steady. Limited activity is expected to develop early Wednesday morning. Bids are expected to become more available as the session continues, but active trade is unlikely until late in the week.
FEEDER CATTLE: Feeder cattle futures saw moderate buyer support, closing $0.75 to $1.02 higher. Following the aggressive market shift lower early in the week, traders brought additional buyer support to the market Tuesday. Increased market support was seen in all nearby contracts, with January futures holding an 82-cent-per-cwt gain at closing bell. However, prices pulled back from strong triple-digit gains early in the day. CME cash feeder index for 12/10 is $144.96, up $0.90.
LEAN HOGS: Sharp follow-through pressure developed in the lean hog trade with contracts closing $0.40 to $1.17 lower. February and April futures saw triple-digit losses, adding to the already weak market tone as prices have continued to quickly back from December highs. Front-month lean hog futures have fallen over $6 per cwt in the last two weeks. This may add follow-through liquidation through the rest of the week with traders focusing on increased market pressure ahead of the holidays. Pork values firmed following wide triple-digit price swings in either direction Tuesday. Pork cutout values gained $0.68 per cwt, moving to $73.33 per cwt. CME cash lean index for 12/14: $55.13, down $0.04. DTN Projected lean index for 12/17: $55.07, down $0.06.
WEDNESDAY'S CASH HOG CALL: Steady to $1 lower. Additional market pressure is expected to be seen through the rest of the week with most bids Wednesday morning expected to be steady to 50 cents lower. Wednesday slaughter numbers are expected to be at 477,000 head with Saturday runs estimated at 352,000 head.
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