GENERAL COMMENTS:
Monday treated the livestock complex kindly, allowing some contracts to keep their support while others dabbled lower. Regardless, the market continues to trade sideways in awe of the New Year while cash markets etch higher. Hog prices are higher on the National Direct Afternoon Hog Report, up $0.70 with a weighted average of $49.71. March corn is down 1 3/4 cents per bushel and March soybean meal is up $1.90. The Dow Jones Industrial Average is down 183.12 points and NASDAQ is down 60.63 points.
LIVE CATTLE:
Given that it's Monday and another holiday week, cash cattle trade has yet to be established and it wouldn't be unlikely to see trade hold off until the later part of the week. Live cattle contracts closed the day mixed - some contract steady, some lower and some slightly higher. February live cattle are down $0.27 at $126.42, April live cattle are down $0.10 at $127.67 and June live cattle are down $0.10 at $119.00.
Closing boxed beef prices are higher: choice up $0.70 ($209.66) and select up $0.84 ($205.41) with a movement of 106 loads (78.22 loads of choice, 12.75 loads of select, 4.85 loads of trim and 10.67 loads of ground beef). Monday's slaughter is estimated at 116,000 head, 39,000 head more than a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. With the market being closed Wednesday for New Years, it's most likely that live cattle will wait to trade until sometime after the holiday. It wouldn't be strange to see trade take shape like last week's, but with two holiday weeks back to back there are more cattle sell this week, and don't forget packers have cattle committed for delivery next week and the following week.
FEEDER CATTLE:
Feeder cattle contracts closed dancing on both sides of the line; nearby contracts closed lower, deferred contracts closed higher. While considering the New Year holiday, sale barns are anxious to get back to a regular schedule, and for those who were hit by this week's storm, they pray that road conditions get better before the end of the week. January feeders are down $0.12 at $145.42, March feeders are down $0.30 at $144.50 and April feeders are down $0.32 at $146.97. The CME feeder cattle index 12/27/19: $139.14, down $5.47.
LEAN HOGS:
Both Monday morning and Monday afternoon cash hog prices closed higher, and rumor that the phase one trade agreement could be signed as early as next week excites hog producers, but they know better than to bank on headlines. Lean hog contracts were able to hold gains throughout most contracts with just the most deferred contracts coming in slightly lower. February lean hogs are up $1.22 at $71.80, April lean hogs are up $0.75 at $78.62 and May lean hogs are up $0.32 at $84.65. Pork cutouts totaled 382.03 loads with 352.36 loads of pork cuts and 29.67 loads of trim. Pork cutout values: down $0.29 at $74.75. Monday's slaughter is estimated at 486,000 head, 92,000 head more than a year ago. The CME lean hog index 12/26/19: $59.03, down $0.06.
TUESDAY'S CASH HOG CALL: Steady. Given that some of the complex will step away Tuesday to enjoy New Year's Eve festivities, steady cash hog trade is the best bet.
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