GENERAL COMMENTS:
Livestock contract toyed with the idea of trading higher, and if it weren't for a few contracts in the live cattle sector, the complex could have been called moderately higher. Hog prices on the National Direct Morning Hog Report at $1.26 higher weigh a weighted average of $44.80. March corn is down 3/4 cent per bushel and January soybean meal is up $1.20. The Dow Jones Industrial Average is down 340.12 points and NASDAQ is down 73.19 points.
LIVE CATTLE:
Slow to welcome the idea but eventually came around near the closing bell, live cattle contracts closed mixed as some contracts closed higher and some closed lower. Nearby contracts weren't as fascinated with the idea of higher trade whereas deferred contacts welcomed it modestly. December live cattle closed $0.20 lower at $120.55, February live cattle closed $0.15 lower at $125.65 and April live cattle contracts closed up $0.02 at $126.22. The country echoed with the wind and not a telephone rang with bid, as packers are yet to test the waters this week and asking prices are around $122 in the South and $193 plus in the North.
Boxed beef prices closed higher: choice up $0.49 ($232.61) and select up $2.64 ($212.98) with a total movement of 83 loads (47.72 loads of choice, 15.98 loads of select, 7.83 loads of trim and 11.52 loads of ground beef). Tuesday's slaughter is estimated at 120,000 head, steady with a year ago, and its inaccurate to compare to a week ago due to the holiday. Monday's slaughter was revised to 120,000 head, not the initially stated 117,000 head.
WEDNESDAY'S CASH CATTLE CALL: $1.00 higher. Given that Monday's slaughter was revised to higher total figures, probably due to the fact that the plant in Holcomb, Kansas, is back into production, and that boxed beef prices are flirting with the idea of maybe trading steady to somewhat higher, leads one to believe that fat cattle could sell for higher money again this week since packers only bought a limited amount of cattle last week.
FEEDER CATTLE:
Feeder cattle contracts secured a mostly higher gain Tuesday afternoon with only March and April 2020 contracts closing lower. Nearby contracts gained mildly, whereas deferred contracts were a quarter shy of rallying a full dollar. January feeders closed $0.22 higher at $142.37, March feeders closed $0.10 lower at $142.92 and April feeders closed $0.02 lower at $144.90.
On an estimated run of 7,998 head (up 2515 head from the previous week), feeders at Oklahoma National Stockyards in Oklahoma City, Oklahoma, sold feeder steers steady to $2.00 higher; feeder heifers were mostly steady. Steer calves sold $4.00 higher on a light test and heifer calves were $1.00 to $3.00 lower. Demand was good and quality was average to attractive with an abundance of attractive, long-weaned calves available. Buyers were very aggressive after the holiday shortened week. The CME feeder cattle index 12/2/19: not available at this time.
LEAN HOGS:
Leading the market higher on Tuesday, lean hog futures close sharply higher. December lean hogs closed $2.15 higher at $62.50, February lean hogs closed $2.22 higher at $68.37 and April lean hogs closed $1.70 higher at $74.27. It's been a positive little rally for lean hog producers, but the market still trades well below the 40-day moving average ($64.08) and the 100-day moving average ($67.57). Pork cutout totaled 392.90 loads with 358.97 loads of pork cuts and 33.93 loads of trim. Pork cutout values are down $2.25 at $80.61. Tuesday's hog slaughter is estimated at 495,000 head, 15,000 head more than a year ago. The CME lean hog index 11/29/19: down $1.00 at $57.35.
WEDNESDAY'S CASH HOG CALL: Steady. Given that the beginning of the week has locked in gains for the cash hog market, it wouldn't be surprising to see the rest of the week trade steady to slightly higher.
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