Monday Midday Livestock Market Summary - Cattle Contracts Keep Pushing Higher

 General Comments

The cattle contracts continue to soar higher into Monday's afternoon trade as technical and fundamental support is ample in the marketplace. The lean hog contracts are trading lower as traders are less confident about the market's consumer demand and fundamental backing. March corn is up 3 cents per bushel and March soybean meal is down $0.20. The Dow Jones Industrial Average is up 204.72 points and NASDAQ is up 116.75 points.

LIVE CATTLE

Following last week's strong cash cattle trade, the live cattle market isn't interested in slowing down its pace to welcome in the New Year but would rather carry the market's strong momentum into 2021. February live cattle are up $0.97 at $115.95, April live cattle are up $0.60 at $119.57 and June live cattle are up $0.37 at $114.85. As the market looks to the New Year and hopes for new opportunities, the market's underlying support only continues to build as boxed beef prices scale higher, cash cattle trade is demanding attention and slaughter speeds remain elevated. Feedlots are anticipated to price cattle $1.00 to $2.00 higher, through early bids and asking prices have yet to surface this week. New showlists appear to be somewhat higher in Texas, and larger in Kansas, Nebraska and Colorado.

Last week's cash cattle trade was larger than anticipated with 85,698 head selling. Of that 65,159 head are committed for delivery in the next upcoming two weeks while the remaining 20,539 head are for delivery in the next 15 to 30 days.

Boxed beef prices are higher: choice up $1.00 ($208.54) and select up $0.48 ($198.41) with a movement of 87 loads (45.03 loads of choice, 16.99 loads of select, 13.02 loads of trim and 12.29 loads of ground beef).

FEEDER CATTLE

The feeder cattle contracts are liking what Monday has to offer and show no sign of retreating while traders are interested in moving the market higher. January feeders are up $.80 at $141.72, March feeders are up $1.10 at $143.42 and April feeders are up $0.95 at $144.87. As the market prepares for feeder cattle to once again hit the market mainly after the first of the year, buyers are eyeing the futures complex and are loving the market's long-term strength. For those looking to buy calves early this winter and summer them on grass, the late summer early fall futures are aligning perfectly as the August 2021 through October 2021 contracts are all trading above $150.00.

LEAN HOGS

While the cattle contracts are soaking up the market's support, the lean hog contracts are veering lower as traders aren't as keen on investing in the hog market. February lean hogs are down $0.72 at $66.22, April lean hogs are down $0.55 at $70.55 and June lean hogs are down $0.52 at $81.80. With the number of market ready hogs being ample, producers are trying to get hogs worked through the system so that currentness can be achieved and hopefully producers will see higher prices in the future.

The projected lean hog index is unavailable at this time. Hog prices are lower on the National Direct Morning Hog Report, down $0.51 with a weighted average of $49.92, ranging from $44.00 to $52.00 on 9,777 head and a five-day rolling average of $50.10. Pork cutouts total 352.65 loads with 331.66 loads of pork cuts and 20.99 loads of trim. Pork cutout values: up $6.09, $75.43.