GENERAL COMMENTS:
Both the live cattle and lean hog markets fought some pressure but ultimately were able to join the feeder cattle market in trading higher before the day's close. Hog prices are unchanged on the National Direct Afternoon Hog Report with a weighted average of $56.57 on 13,139 head and a five-day rolling average of $56.78. March corn is down 5 1/4 cents per bushel and January soybean meal is down $0.30. The Dow Jones Industrial Average is up 185.28 points and NASDAQ is up 156.36 points.
LIVE CATTLE:
As the day progressed, the live cattle market grew stronger and ultimately the entire complex closed higher. December live cattle closed $0.45 higher at $110.62, February live cattle closed $0.30 higher at $113.17 and April live cattle closed $0.42 higher at $116.82. It's appearing that the boxed beef market may be seeing a seasonal top develop after a tremendous rally into the month of December. Even if boxed beef prices are topping, beef demand remains considerably strong and will continue to encourage packers to keep chain speeds elevated. There was some light trade that develop in parts of the North ($110 live and $172 dressed) but certainly not on a big enough scale to have determined the week's trend. Tuesday's slaughter is estimated at 122,000 head, steady with a week and year ago.
Boxed beef prices closed mixed: choice down $0.28 ($243.40) and select up $0.65 ($223.08) with a movement of 130 loads (78.38 loads of choice, 13.47 loads of select, 11.28 loads of trim and 26.98 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Higher. With the board finding adequate support and feedlots understanding the importance of timing, feedlots are going to try their best at moving this week's cash cattle market higher.
FEEDER CATTLE:
Feeder cattle contracts were bold throughout Tuesday's trade; jumping above $142.00 at some points throughout the day. The market was able to close higher, and the spot January feeder cattle contracts didn't tremor in fear and scale below $141 before closing. January feeders closed $0.60 higher at $141.65, March feeders closed $0.67 higher at $140.65 and April feeders closed $0.80 higher at $141.87. Helping encourage the feeder cattle market was corn's lower close, as the market saw $0.05 losses in most nearby contracts. At Ozarks Regional Stockyards in West Plains, Missouri, compared to a week ago, steer calves traded steady to $4.00 higher while heifer calves traded mostly steady. Yearlings were not well tested throughout the day, but demand was strong for the entire sale following last week's shorten holiday week. The CME feeder cattle index for Nov. 30: up $1.41, $140.30.
LEAN HOGS:
The lean hog complex grew stronger throughout the day and was able to close mostly higher after showing some weakness around the noon hour. December lean hogs closed $0.60 lower at $66.97, February lean hogs closed $0.17 higher at $67.75 and April lean hogs closed $0.02 lower at $71.37. Cash hog prices didn't see any improvement, but packers did buy a considerable amount for the cash market. Pork cutouts totaled 289.57 loads with 232.42 loads of pork cuts and 57.16 loads of trim. Pork cutout values: up $0.13, $80.09. Tuesday's slaughter is estimated at 493,000 head, 4,000 head less than a week ago and 3,000 head less than a year ago. The CME lean hog index for Nov. 27: down $0.34, $66.81.
WEDNESDAY'S CASH HOG CALL: Steady to somewhat higher. Packers have bought a considerable number of hogs both Monday and Tuesday, and could need more hogs into the later part of the week. Their need most likely doesn't outweigh their hesitation to move the cash market higher, but Wednesday could possibly see a small uptick in prices.
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