Cattle contracts may be lower, but it's safe to say that they could have been a lot lower given that the market jumped higher only because of the excitement that the phase one trade agreement is getting closer to being signed. When markets trade on emotion (excitement) it's just as easy to rally as it is to fall lower. So, seeing that Monday is only giving up a small portion of Friday's rally is quite exceptional. March corn is up 5 1/2 cents per bushel and January soybean meal is up $2.00. The Dow Jones Industrial Average is up 180.49 points and NASDAQ is up 98.44 points.
LIVE CATTLE
Live cattle contracts are acting as they usually do with the mundane Monday spirt, trading modestly lower. December live cattle are down $0.35 at $122.02, February live cattle are down $0.47 at $127.07 and April live cattle are down $0.32 at $127.98. For the last couple of weeks packers have said time and time again that they don't NEED cattle, but they keep participating in the week's negotiated trade. On one hand, they could be quiet this week given that it's the week before Christmas and holiday orders are filled; but on the other hand, last week there was a significant movement of boxed beef sold, if demand keeps up as it is, packers will keep processing.
According to the Friday afternoon Mandatory reports weekly trade volumes were as follows: Kansas 14,722; Nebraska 15,769; Texas and Colorado not available due to confidentiality; Iowa 3,271. This week's showlists are lower in all major feeing states, but especially lower in Kansas.
Boxed beef prices are higher: choice up $1.30 ($217.59) and select up $1.64 ($205.88) with a movement of 48 loads (26.50 loads of choice, 5.75 loads of select, 7.04 loads of trim and 8.30 loads of ground beef).
FEEDER CATTLE
Feeder cattle markets aren't welcoming Monday with the same momentum they closed with on Friday. January feeder cattle are down $0.47 at $145.20, March feeder cattle are down $0.67 at $145.57 and April feeder cattle are down $0.55 at $147.55. Somewhat lower, certainly, but not so bad for a Monday, absolutely. Given that Friday's market was largely bolstered by the excitement that the phase one agreement is getting close to being signed, seeing that Monday arrived with no agreement yet signed could have shot the market down just as easily as it went up. Thankfully, cattle contracts are sitting confidently as the new year approaches and a prosperous 2020 market seems to be the strong undertone.
LEAN HOGS
Higher cash trade Monday morning with moderately higher undertones from the board? Wins throughout the lean hog complex are keeping producers' spirits up and is keeping them on the edge of their seats until the phase one trade agreement is signed... which no one really knows when that will be. Now that the December lean hog contract has expired and February takes the spot month position, a modestly higher trend line takes the board. February lean hogs are up $0.27 at $69.77, April lean hogs are up $0.62 at $76.85 and May lean hogs are up $0.62 at $83.32.
The projected lean hog index for 12/13/19 is down $0.07 at $59.81 and the actual index for 12/12/19 is up $0.16 at $59.88. Hog prices are higher on the National Direct Morning Hog Report, up $0.46 with a weighted average of $48.46, ranging from $42.00 to $49.04 on 4,578 head sold and a five-day rolling average of $47.99. Pork cutouts total 169.47 loads with 153.70 loads of pork cuts and 15.78 loads of trim. Pork cutout values: up $1.70 at $83.58.
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