Friday Midday Livestock Market Summary - Cattle Look to Close the Week Fully Higher

 General Comments

March corn is up 2 1/2 cents per bushel and January soybean meal is up $2.70. The Dow Jones Industrial Average is down 142.29 points and NASDAQ is down 142.95 points. Friday has turned out to be a strong day for the cattle contracts as both the live cattle and feeder cattle contracts trade fully higher. It was uncertain early Friday morning if traders would continue to invest within the marketplace but as the day has progressed the interest and support has only strengthened. The cash cattle market is still painfully quiet without a single bid having been renewed.

LIVE CATTLE

The countryside is a quiet battleground as packers got some feedlots to sell early in the week for considerably lower prices, but the feedlots who have yet to sell are looking at the market's stronger board and are wanting at least steady prices. Trade could be potentially wrapped up in the South, but more cattle are anticipated to trade in the North unless its going to be a light moving week. December live cattle are up $0.97 at $108.90, February live cattle are up $1.57 at $113.45 and April live cattle are up $1.40 at $117.37. Either way, Friday's strength that's developed is a great way to round out the week and hopefully will trickle into next week's developments.

Boxed beef prices are lower: choice down $1.02 ($213.57) and select down $2.21 ($196.26) with a movement of 83 loads (41.77 loads of choice, 14.23 loads of select, 11.34 loads of trim and 15.55 loads of ground beef).

FEEDER CATTLE

The feeder cattle contracts are having a stellar morning as nearby contracts rally well above $1.00. January feeders are up $1.72 at $139.32, March feeders are up $1.42 at $140.67 and April feeders are up $1.35 at $142.07. The market's support has really solidified as earlier Friday morning there was some concern that pressure would keep the contracts from reaching higher levels, and with the corn market's minute rally the concern was valid. But as the morning has progressed, traders continue to invest within the sector which is helping roll into the afternoon with excellent support.

LEAN HOGS

The lean hog market is trailing into the weekend unsupported and fully lower. December lean hogs are down $0.12 at $64.67, February lean hogs are down $1.75 at $63.35 and April lean hogs are down $1.42 at $67.65. It seems as though traders have opted to simply let the lean hog market trade sideways in its steady state and instead invest in the cattle contracts where there appears to be more upside potential.

The projected lean hog index for 12/9/2020 is down $0.05 at $65.61, and the actual index for 12/8/2020 is up $0.06 at $65.66. Hog prices are lower on the National Direct Morning Hog Report, down $1.38 with a weighted average of $52.38, ranging from $48.00 to $55.00 on 5,990 head and a five-day rolling average of $54.30. Pork cutouts total 241.27 loads of with 210.10 loads of pork cuts and 31.17 loads of trim. Pork cutout values: up $1.80, $80.23.