GENERAL COMMENTS:
Livestock contracts spent some time Monday figuring out where the day needed to trade, and it wasn't as high as many assumed it would be. Hog prices are higher on the National Direct Afternoon Hog Report, up $0.50 with a weighted average of $47.02. March corn is down 1 cent per bushel and January soybean meal is down $0.80. The Dow Jones Industrial Average is down 105.46 points and NASDAQ is down 34.70 points.
LIVE CATTLE:
Feeling some resistance, December live cattle futures closed steady. The spread between April 2020 and June 2020 contracts keeps traders on their toes, spanning a lofty $7.90 between the two contracts. December live cattle are down $0.02 at $120.17, February live cattle are down $0.22 at $124.75 and April live cattle are up $0.05 at $125.40.
Formula totals for last week were higher in all three major feeding states: Kansas 81,561 (up 8,595), Nebraska 55,164 (up 4,099), Texas 99,400 (up 25,982). Total trade volume was also higher in all three major feeding states: Kansas 101,045 (up 15,297), Nebraska 78,561 (up 2,101), Texas NA due to confidentiality. New showlists appear to be higher in Nebraska, Colorado and Kansas, but lower in Texas. Bids and asking prices have yet to be established, and the general consensus is that cash cattle will most likely trade steady this week.
Closing beef cutout prices are lower: choice down $0.92 ($223.64) and select down $0.81 ($206.49) with a total movement of 136 loads (69.30 loads of choice, 17.87 loads of select, 6.68 loads of trim and 41.99 loads of ground beef). Monday's estimated slaughter is 121,000 head -- 1,000 head more than a week ago, and 2,000 head more than a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. Last week in and of itself was a success for feeders. Being able to push the market $1.00 higher in between two holidays is great. But seeing that Monday's market is challenging support enthusiastically, pushing fat cattle prices much higher than last week may be a chore.
FEEDER CATTLE:
Feeder cattle markets bounced around Monday but ended up closing the day mostly higher. January feeders closed $0.02 lower at $141.52, March feeders closed $0.60 higher at $142.27 and April feeders closed $0.37 higher at $144.15.
Last Friday at PAYS in Billings, Montana, roughly 1,975 feeders sold. Steers calves weighing less than 550 pounds sold steady to $4.00 lower; steers 550 to 699 pounds sold steady. Heifers calves weighing 550 to 649 pounds sold unevenly steady from $2.00 lower to $5.00 higher. Most calves that sold were freshly weaned and fleshy in condition. The CME feeder cattle index 12/6/19: down $1.01 at $143.48.
LEAN HOGS:
Lean hog contracts fell hard especially in the spot month, and somewhat in the nearby contracts while deferred contracts were able to capture mild gains. December lean hogs are down $1.12 at $60.00, February lean hogs are down $0.85 at $66.70 and April lean hogs are down $0.72 at $72.97. Pork cutouts totaled 282.48 loads with 252.44 loads of pork cuts and 30.04 loads of trim. Pork cutout values: down $0.10 at $81.98. Monday's estimated slaughter is 496,000 head -- 1,000 less than a week ago, and 21,000 more than a year ago. The CME lean hog index 12/5/19: up $0.15 at $58.49.
TUESDAY'S CASH HOG CALL: $1.00 lower. With the board down and cutout values down, cash hog producers may see a tough week unless packers push for another massive harvest this week.
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