Monday Midday Livestock Market Summary - Supportive Trade Found

  General Comments

The futures market is treating the livestock complex kindly Monday morning as all three markets are able to trade almost fully higher. The lean hog market is rally with the most support as the February lean hog contracts rallies as much as $2.40 higher. Thankfully the markets are holding their own but expect delays from the USDA as they are experiencing major technical difficulties. March corn is down 1 1/4 cents per bushel and January soybean meal is down $0.70. The Dow Jones Industrial Average is up 35.57 points and NASDAQ is up 130.02 points.

LIVE CATTLE

Live cattle prices were tentative about trading higher early in the day but as Monday has progressed and now trades into the afternoon, the market trades almost fully higher. December live cattle are up $0.40 at $109.15, February live cattle are down $0.10 at $113.15 and April live cattle are up $0.15 at $117.52. Last week's cash cattle trade was especially disappointing as cattle started to trade as early as Tuesday afternoon and by the time the board traded higher on Wednesday, the market had already lost its chance of holding trade at least steady for the week. With slaughter speeds commendably stout, the pressure from weakening boxed beef prices should be able to be offset with such a vigorous pace. It's too early in the week for bids and asking prices to have developed, but feedlots work together and trade strategically this week, steady trade should be attainable. This week's showlists appear to be larger in all major feeding states.

Boxed beef prices are unavailable due to technical issues from the USDA.

FEEDER CATTLE

While the live cattle contracts have danced on both sides of sideways Monday morning, the feeder cattle contracts are completely comfortable trading higher. January feeders are up $0.67 at $140.40, March feeders are up $0.52 at $141.07 and April feeders are up $0.57 at $142.47. Helping push the market higher is last week's vast movement of feeder cattle which sold anywhere from $5.00 lower to $5.00 higher depending on the location throughout the U.S., and obviously the renewed buying from traders. There's still plenty of upward positioning to be had before the market runs into some technical pressure.

LEAN HOGS

The lean hog market isn't going to lose out on the chance to trade higher and the February lean hog contracts is especially taking advantage of Monday's support. February lean hogs are up $2.40 at $65.62, April lean hogs are up $1.37 at $68.87 and June lean hogs are up $0.37 at $79.27. As the December lean hog contract expires, the February contract is willingly taking on any new traders and would love nothing more than to break away from the market's support plane that Friday drew the market close to once again.

The projected lean hog index for 12/10/2020 is down $0.26 at $65.35, and the actual index for 12/9/2020 is down $0.05 at $65.61. Both pork cutouts and morning cash hog prices are unavailable due to technical difficulties at the USDA.