GENERAL COMMENTS:
Tuesday ended up treating the livestock contracts better than anticipated. The lean hog and feeder cattle contracts were able to close mostly higher while the live cattle contracts simply fought too much pressure. Hog prices were unchanged on the National Direct Afternoon Hog Report with a weighted average of $55.62 on 8,804 head. March corn is down 4 1/4 cents per bushel and January soybean meal is down $5.40. The Dow Jones Industrial Average is up 104.09 points and NASDAQ is up 62.82 points.
LIVE CATTLE:
The pressure of a lower trading cash cattle market and weaker boxed beef prices waned on the live cattle market's ability to close higher like the rest of the livestock contracts. December live cattle closed $0.15 lower at $107.85, February live cattle closed $0.25 lower at $110.77 and April live cattle closed $0.22 lower at $114.92. Upon boxed beef prices dropping, there was an exuberant movement of product Tuesday afternoon, which most likely goes to some out-front buying. With boxed beef prices expected to scale lower throughout the month of December, buyers are going to been adamant about securing supplies while prices are correcting. There were some cattle that traded in both Texas and Kansas for $108, which is $2.00 lower than Kansas' weighted average from last week and $2.50 lower than Texas weighted average from a week ago. Tuesday's slaughter is estimated at 115,000 head, 7,000 head less than a week ago and 9,000 head less than a year ago.
Boxed beef prices closed lower: choice down $5.78 ($225.02) and select down $4.06 ($205.42) with a movement of 228 loads (122.15 loads of choice, 38.62 loads of select, 38.74 loads of trim and 28.84 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady. Wednesday will most likely test the cash cattle market as trade is likely to develop after the online auction. Seeing that a few cattle traded for lower money, packers are going to be bound and determined to move the market $2.00 to $2.50 lower this week.
FEEDER CATTLE:
Thankfully, when looking at the markets in respect to feed costs, the corn market kept its $0.02 to $0.04 regression through closing and allowed the feeder cattle contracts to close higher in all but the spot January contract. January feeders closed $0.22 lower at $137.57, March feeders closed $0.35 higher at $138.50 and April feeders closed $0.60 higher at $140.05. Tuesday's support came midmorning as traders rethought their positions and decided the lower levels were safe enough to jump back into the marketplace. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to a week ago, feeder steers and heifers sold mostly steady to $2.00 lower. Steer calves traded steady to $4.00 higher, while heifer calves sold mostly steady. Demand was moderate to good, but there was a large run of calves from an Angus-influenced specialty sale. The CME feeder cattle index for Dec. 7: down $0.94, $137.34.
LEAN HOGS:
The lean hog market had a pretty good day considering the futures market closed mostly higher, the cash hog market was unchanged on 8,000 head and the cutout values managed to squeak higher before the day's close. December lean hogs are up $0.05 at $64.55, February lean hogs are up $0.65 at $65.60 and April lean hogs are up $0.32 at $69.22. Pork cutouts total 422.23 loads with 367.46 loads of pork cuts and 54.77 loads of trim. Pork cutout values: up $0.22, $78.12. Tuesday's hog slaughter is estimated at 496,000 head, 8,000 head more than a week ago and 6,000 head more than a year ago. Monday's hog slaughter was revised to 487,000 head. The CME lean hog index for Dec. 4: down $0.47, $65.79.
WENDESDAY'S CASH HOG CALL: Steady to somewhat higher. The markets are seeing some positivity filtrate through its moving pieces and if the futures market comes back into Wednesday trade optimistic and the cutout values trend slightly stronger, the market could see a slight bump in cash prices.
No comments:
Post a Comment