GENERAL COMMENTS:
Monday could be called a win for livestock contracts, as lean hog futures traded higher and cattle contracts were able to keep most of Friday's rally. Monday is typically a slow day for cattle contracts, so it's not unusual to see cattle contracts weaker at the start of a new week. Hog prices on the National Direct Afternoon Hog Report closed $0.12 higher with a weighted average of $48.12. March corn closed up 7 cents per bushel and January soybean meal was up $4.40. The Dow Jones Industrial Average was up 100.51 points and the NASDAQ was up 79.35 points.
LIVE CATTLE:
Closing the day lower but keeping most of Friday's rally was a positive win for live cattle contracts. December live cattle closed $0.07 lower at $122.30, February live cattle closed $0.30 lower at $127.25 and April live cattle closed $0.27 lower at $127.92. Cash cattle trade was typical for Monday: quiet, obsolete and nonexistent. As the holiday creeps closer and closer, the marketplace will be quiet, but view it as the quiet before the storm. As more time passes and quarter one of the new year gets closer, markets will amp up for the tightest fed cattle supplies and good runs of long-weaned calves.
Boxed beef values closed higher: choice up $0.79 ($217.08) and select up $1.27 ($205.51) with a movement of 87 loads (54.29 loads of choice, 12.93 loads of select, 8.27 loads of trim and 11.47 loads of ground beef). Monday's slaughter is estimated at 120,000 head -- down 1,000 head from a week ago and up 10,000 head from a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. Tuesday will most likely be quiet, but when trade kicks off this week, it wouldn't be unlikely to see it a tad bit higher yet again. Packers have some cattle committed for delivery from now until the first of the year, but not enough to fully sit idle.
FEEDER CATTLE:
Feeder cattle markets were able to hold on to the majority of Friday's rally but closed Monday lower. January feeder cattle closed $0.42 lower at $145.25, March feeders closed $0.65 lower at $145.60 and April feeders closed $0.60 lower at $147.45. Last Friday at PAYS Public Auction Yard in Billings, Montana, 2,876 feeders were sold compared to the previous week. Steer calves weighing less than 600 pounds sold steady to $5.00 higher, and steers weighing 600 pounds or heavier sold uneven from $2.00 to $4.00 higher. Heifer calves of all weights sold unevenly steady from $2.00 lower to $2.00 higher. Knowing that this week will be the last of sale barn sales before the first of the year will likely lead to big runs at the sale barns this week. The CME feeder cattle index 12/13/19: up $1.21 at $144.61.
LEAN HOGS:
Closing the day with strong gains following Friday's positive spur, lean hog contracts closed higher in all contracts expect the two furthest deferred months. February lean hogs closed $1.00 higher at $70.50, April lean hogs closed $1.22 higher at $77.45 and May lean hogs closed $1.20 higher at $83.90. Pork cutouts totaled 342.61 loads with 294.98 loads of pork cuts and 47.64 loads of trim. Pork cutout values: down $2.32 at $79.56. Monday's slaughter is estimated at 492,000 head -- up 1,000 head from a week ago and up 12,000 head from a year ago. Friday's slaughter was revised to 487,000 head. The CME lean hog index 12/12/19: up $0.16 at $59.88.
TUESDAY'S CASH HOG CALL: Steady. Tuesday's futures board is generally hard on the lean hog complex. It wouldn't be surprising to see hog prices stay steady to gain a little ground.
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