GENERAL COMMENTS:
Cattle futures closed mixed with feeders slightly higher and live cattle lower. December live cattle futures traded in a tight range, establishing an inside trading day from Monday. February showed the most pressure closing down $0.95 after two days of futures setting a new contract high of $127.90. It was too early in the week for buyers and sellers to become more aggressive in the cash market. Generally, buyers and sellers are content to wait until later in the week to get serious. However, activity could increase as buyers prepare for the upcoming holidays and the disruption of normal business. The need to purchase earlier might move the need to do business a bit earlier. Asking prices of $122 in the South and $195 in the North did not change. Lean hogs were mixed with February and April lower and later contracts higher. Hogs have not received much buying interest from traders as a result of the phase one trade agreement between U.S. and China; maybe because many of the details have yet to be worked out. February hogs showed the greatest loss of $0.65. Even with the decline, the recent uptrend remains intact. June and later contracts show a chart gap at $2.00 lower that may need to be filled. This will act like a magnet unless these gaps are closed. March corn gained 2 cents, the DOW is 60 points higher with the NASDAQ up 10 points.
LIVE CATTLE: December cattle tried to push to a new contract high, but just could not garner enough buyer interest. It was too early in the week to uncover any interest. Futures may hold until more indication of cash is known. February retreated from its high, but will hold until cash strength is known. Boxed beef cutouts were lower. Choice were down $4.27 at $212.81 and select were down $2.04 at $203.47. Demand was rather light with 78 loads of choice cuts, 15 loads of select cuts, 20 loads of trimmings and 39 loads of ground beef.
WEDNEDAY'S CASH CATTLE CALL: Steady with trade potentially become more active as packers look ahead to the holiday week.
FEEDER CATTLE: Futures posted an inside trading day as the market consolidates after the large increase on Friday. January was down $0.10 with the rest of the contracts slightly higher. Without much trading activity and direction from live cattle, feeders may drift slightly below contract highs.
LEAN HOGS: Hog futures are trying to move higher, posting higher highs and higher lows. Contracts were mixed with February and April lower with later contracts higher. Spread trading was evident between closer and later contract months. Pork cutouts gained $0.14 moving to $79.70 per cwt. There were 206 loads of pork cuts and 16 loads of trim/process. Lean hog index for 12/13 is $59.81, down $0.07. Projected lean index for 12/16 is $60.22, up $0.41.
WEDNESDAY'S CASH HOG CALL: Steady. Mixed futures may indicate cash prices may be a little lethargic this week. Some support could be garnered if more optimism develops over China trade potential.
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