GENERAL COMMENTS:
Since Friday's rally, livestock contracts haven't been able to make headway one way or another. Friday's rally was a nice boost to the market in a time when trade wasn't expected to really amount to anything, but the market's current lackluster nature shouldn't come as a surprise as support is limited, cumulative trade volume is sparse and the upcoming 2020 is welcomed by all. Hog prices on the National Direct Afternoon Hog Report are lower, down $0.10 with a weighted average of $48.02. March corn is down 3 cents per bushel and January soybean meal is up $0.60. The Dow Jones Industrial Average is down 27.88 points and NASDAQ is up 4.37 points.
LIVE CATTLE:
The December contract held onto steady ground through closing but traded both sides of steady throughout the day. With cash cattle expected to trade either Thursday or Friday, the board will most likely be incentivized to follow the trend established by cash cattle trade in the next day or two. December live cattle closed $0.02 higher at $122.25, February live cattle closed $0.17 lower at $126.12 and April live cattle closed $0.07 lower at $127.25. A few bids started to pop up in the countryside Wednesday afternoon, with cattle bid at $190 in Nebraska - which is fully steady with last week's trade. Asking prices hold at $122 plus in the South and $195 in the North.
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). Wednesday's slaughter is estimated at 122,000 head, steady with a week ago and 5,000 head more than a year ago.
THURSDAY'S CASH CATTLE CALL: Steady to $1.00 higher. How hard feeders are going to push this week is the main question. If it looks like packers need more cattle than they are letting on, trade could be slightly higher if feeders hold firm in their asking prices and make packers wait until Friday afternoon to trade. If packers end up buying a light offering this week, steady money is all that is to be expected.
FEEDER CATTLE:
Stair stepping down through Friday's gains, feeder cattle contracts close mostly lower. January feeder cattle contracts closed $0.60 lower at $144.55, March feeder cattle closed $0.82 lower at $144.90 and April feeder cattle closed $0.72 lower at $146.92. If cash cattle trade can spark some positive gains later this week, feeder cattle markets may be able to latch onto some of that energy, but for the most part, steady, sideways and mundane in nature is mostly likely the outlook until January.
On Tuesday with an estimated run of 2,893 head at Miles City Livestock Commission in Mile City, Montana, the demand for yearlings was notably strong with a limited run available. Steer calves weighing less than 550 pounds sold mostly steady to $5.00 higher, 550 to 599 pounds steers sold unevenly steady from $3.00 lower to $3.00 higher and steers weighing over 600 pounds sold mostly $3.00 to $5.00 higher. Heifer calves weighing less than 500 pounds sold mostly $3.00 to $6.00 higher, heifers weighing 500 pounds and heavier sold steady to $4.00 higher, with the exception that 550 to 599 weight heifers sold $4.00 to $7.00 higher. The CME feeder cattle index 12/17/19: $145.48, up $0.38.
LEAN HOGS:
A handful of contracts were able to close mildly higher, though nearly as many contracts traded lower. February lean hogs closed $0.05 higher at $69.90, April lean hogs closed $0.17 lower at $77.22 and May lean hogs closed $0.17 lower at $83.95. With increased hog slaughter contracts are hopeful that demand will increase after the New Year and welcome more positive trade. Wednesday's slaughter is estimated at 494,000 head, 5,000 head more than a week ago and 10,000 head more than a year ago. Pork cutouts totaled 317.58 loads with 262.01 loads of pork cuts and 55.57 loads of trim. Pork cutout values: down $1.52 at $77.29. The CME lean hog index 12/16/19: $60.22, up $0.41.
THURSDAY'S CASH HOG CALL: Steady. The board may have been able to pull a handful of contracts higher through closing, but it wouldn't be surprising to see the lean hog sector step back Thursday or Friday if cash cattle trade gets eventful.
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