GENERAL COMMENTS:
Monday was rough on the livestock contracts as all three markets closed lower, keeping with Friday's doggish trade. With traders unwilling to step into the marketplace, the contracts were left with no other option but to veer lower. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.06 with a weighted average of $55.37 on 5,240 head. March corn is up 3 1/2 cents per bushel and January soybean meal is down $3.20. The Dow Jones Industrial Average is down 148.47 points and NASDAQ is up 55.72 points.
LIVE CATTLE:
The live cattle contracts weren't able to paint a rosy picture for feedlots this week and closed Monday fully lower like the rest of the livestock market. December live cattle closed $0.87 lower at $108.00, February live cattle closed $1.37 lower at $111.02 and April live cattle closed $1.02 lower at $115.15. With boxed beef prices seeing a steep regression in Monday's afternoon close, the cash cattle trade this week could be weaker. Packers will grow more adamant about paying steady to higher prices for cattle as their profits from the boxed beef market get tapered down. Monday's cash cattle trade was at a mere standstill with bids and asking prices unknown and business not anticipated to develop until later in the week. Monday's slaughter is estimated at 119,000 head, steady with a week ago and 2,000 head less than a year ago.
Boxed beef prices closed sharply lower: choice down $4.22 ($230.80) and select down $8.03 ($209.48) with a movement of 161 loads (111.97 loads of choice, 27.04 loads of select 6.85 loads of trim and 15.63 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. Feedlots will at least price cattle at steady prices if not still $1.00 to $2.00 higher as they know well enough that packers will come in lower with their bids. It's unlikely that trade will develop as early as Tuesday, but we could see some interest develop Wednesday after the online auction.
FEEDER CATTLE:
As Monday trailed into the afternoon, the losses that the feeder cattle market endured grew greater and greater. January feeders closed $1.97 lower at $137.80, March feeders closed $1.27 lower at $138.15 and April feeders closed $1.32 lower at $139.45. Largely, Monday's weaker take comes from the lack of trader interest and immense pressure on the futures market to push contracts back to lower levels. At Joplin Regional Stockyards in Carthage, Missouri, compared to a week ago, steers under 650 pounds sold steady to $3.00 lower and heifers under 600 pounds sold $1.00 to $3.00 lower. Steers over 650 pounds and heifers over 600 pounds sold $2.00 to $4.00 lower. Demand was good but supply was extremely heavy. The CME feeder cattle index for Dec. 4 was unavailable at this time.
LEAN HOGS:
The lean hog contracts suffered from the same melancholy fate that the cattle contracts did. Closing fully lower, the lean hog contracts teetered back into trading in the sideways trend that the market tried to rally out of early last week. The cash hog market did see some minor support develop as the market was able to close $0.06 higher, but cutout values still lack substantial consumer demand. December lean hogs closed $1.37 lower at $64.50, February lean hogs closed $1.62 lower at $64.95 and April lean hogs closed $1.60 lower at $68.90. Pork cutouts total 297.08 loads with 261.74 loads of pork cuts and 35.34 loads of trim. Pork cutout values: down $0.27, $77.90. Monday's slaughter is estimated at 497,000 head, steady with a week ago and 4,000 head more than a year ago. Saturday's hog slaughter was revised to 319,000 head. The CME lean hog index for Dec. 3: down $0.29, $66.26.
TUESDAY'S CASH HOG CALL: Steady. It was nice for the hog market to see a slight uptick in prices Monday afternoon, but without an increase in the hog cutout value, seeing a big jump in cash prices come Tuesday may be farfetched.
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