GENERAL COMMENTS:
The later part of the week seems to be the livestock market's time to shine if cash prices are in favor of the market trading higher. With all three markets having contracts close higher, the day rallied notable support. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.21 with a weighted average of $47.77. March corn is down 1/2 cent per bushel and January soybean meal is down $4.50. The Dow Jones Industrial Average is up 137.68 points and NASDAQ is up 59.49 points.
LIVE CATTLE:
Cash cattle trade started to appear around the noon hour and trickled into part of the afternoon, pushing prices $1.00 to $2.00 higher depending on the region. The futures board was torn whether to follow the cash market's momentum, so nearby contracts closed slightly lower and deferred contracts closed mildly higher. December live cattle closed $0.12 lower at $122.12, February live cattle closed $0.50 lower at $125.62 and April live cattle closed $0.50 lower at $126.75. Cash cattle trade in the South developed at $120, $1.00 higher than last week's weighted average. And in the North, there was a light offering of dressed trade that sold for $192, $2.00 higher than last week's average. Live cattle in Nebraska sold for $120 to $121, $1.00 to $2.00 higher.
Closing boxed beef values are lower: choice down $3.24 ($209.57) and select down $1.90 ($201.57) with a movement of 155 loads (88.36 loads of choice, 26.47 loads of select, 10.63 loads of trim and 29.42 loads of ground beef). Thursday's slaughter is estimated at 121,000 head - steady with a week ago and up 4,000 head from a year ago.
FRIDAY'S CASH CATTLE CALL: Steady with Thursday's gains. Packers have some cattle committed for delivery next week, so their purchases this week won't have to be exponential. However, seeing that some feeders were able to push prices $1.00 to $2.00 higher, it will be expected that Friday's offerings rally or equal Thursday's prices for good cattle.
FEEDER CATTLE:
Closing slightly higher throughout all contracts except March feeders, the feeder cattle market was able to lock onto the live cattle market and feed off its steam. January feeders closed $0.17 higher at $144.72, March feeders closed $0.07 lower at $144.82 and April feeders closed $0.07 higher at $147.00. On Wednesday, with an estimated run of 4,192 head at Huss Livestock Market in Kearney, Nebraska, compared to the previous week, weaned steers weighing 500 to 800 pounds sold steady to $5.00 higher and weaned heifers weighing 500 to 650 pounds sold $3.00 to $6.00 higher. Demand was excellent from buyers within the crowd. The CME feeder cattle index 12/18/19: not available at this time.
LEAN HOGS:
Scoring gains throughout the lean hog sector, Thursday afternoon treated the lean hog market well. February lean hogs closed $1.07 higher at $70.97, April lean hogs closed $0.27 higher at $77.50 and May lean hog contracts closed $0.05 higher at $84.00. Pork cutouts totaled 312.68 loads with 279.05 loads of pork cuts and 33.63 loads of trim. Pork cutout values: down $0.58 at $76.71. Thursday's slaughter is estimated at 493,000 head, down 2,000 head from a week ago and 16,000 head more than a year ago. The CME lean hog index 12/17/19: $60.65, up $0.43.
FRIDAY'S CASH HOG CALL: Steady. Seeing that the board was able to close slightly higher should stimulate some positive rapport throughout the countryside and packers are more apt to want to buy this week verses next.
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