GENERAL COMMENTS:
Monday came into the week abrupt and bearish, but after the noon hour it started to show minimal glimpses of support in the feeder cattle contract, while the lean hog and live cattle contracts weren't as persuadable. Hog prices are up on the National Direct Afternoon Hog Report, up $0.77 with a weighted average of $43.57. March corn is up 3/4 cent per bushel and January soybean meal is up $0.40. The Dow Jones Industrial Average is down 268.37 points and NASDAQ is down 97.48 points.
LIVE CATTLE:
Live cattle markets weren't as open minded to trading higher as the feeder cattle markets. Live cattle markets could potentially be sitting back to see where this week leads trade, and to catch a break from last week's significant jump. December live cattle closed $0.45 lower at $120.75, February live cattle closed $0.40 lower at $125.80 and April live cattle closed $0.17 lower at $126.20. It's too early in the week for any major cash cattle trade to get under way, but a few early asking prices surfaced in Nebraska at $122 live and $193 dressed; sharply higher than last week's prices. New show lists appear to be higher in Kansas, Nebraska and Colorado, but lower in Texas.
Boxed beef prices closed higher: choice up $0.49 ($232.61) and select up $2.64 ($212.98) with a total movement of 83 loads (47.72 loads of choice, 15.98 loads of select, 7.83 loads of trim and 11.52 loads of ground beef).
Monday's slaughter is estimated at 117,000 head, down 1,000 head from a week ago and a year ago. Saturday's cattle slaughter was revised to 95,000 head, changing the week total to 556,000 head.
TUESDAY'S CASH CATTLE CALL: Steady to $1.00 higher. Tuesday will be too early for trade to happen this week, but when trade does break loose it could be for steady to higher money. With plenty of support in the countryside for packers to keep processing cattle, and demand that keeps coolers fresh -- last week's whittling of cutout values shouldn't fear packers away too much.
FEEDER CATTLE:
Feeder cattle markets were quiet last week in respect to the Thanksgiving holiday, but it wouldn't be unlikely to see sales busy early this week since last week was relatively slow. As markets coast into Christmas, it wouldn't be surprising to see feeder cattle markets merely "hang-in" there as feedlots across the country are full and the marketplace is already saturated with calves. Despite starting the day off with little positivity, the markets toyed with the idea of trading higher Monday afternoon; deferred contracts took the bait but spot and nearby contracts were harder to encourage. January feeder cattle closed down $0.12 at $142.15, March feeders closed steady at $143.02 and April feeders closed steady at $144.97. The CME feeder cattle index 11/29/19: up $0.35 at $144.97.
LEAN HOGS:
Cash hog prices are working hard to pull support and drive prices out of the $40.00 to $43.00 trading range that the complex seems to merely be caught in. Retail prices helping drive demand could keep momentum moving into this week. Pork cutouts totaled 209.36 loads with 179.13 loads of pork cuts and 30.23 loads of trim. Pork cutout values: up $1.01 at $82.86. The CME lean hog index 11/27/19: down $0.25 at $58.35. Monday's hog slaughter is estimated at 497,000 head, 6,000 more than a week ago and 27,000 head more than a year ago.
TUESDAY'S CASH HOG CALL: Steady to $0.50 higher. One doesn't want to get zealous and push the market up just for it to only fall back down, but if retail prices keep the encouraged tone they have now, cash hog prices may be able to maintain steady prices or push slightly higher.
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