General Comments
The live cattle contacts can't decide if the market should scale higher or veer lower and continue to trade on both sides of steady while the lean hog and feeder cattle contracts enjoy modest gains. The cash cattle market is still quiet with bids elusive thus far in the day. March corn is down 1/2 cent per bushel and January soybean meal is up $6.40. The Dow Jones Industrial Average is up 212.21 points and NASDAQ is up 81.39 points.
LIVE CATTLE
Even though the lean hog and feeder cattle contracts are fully confident in the day's support and are finding enough trader interest to trade steadily higher, the live cattle contracts can't come to the same conclusion. December live cattle are down $0.27 at $108.82, February live cattle are down $0.15 at $112.95 and April live cattle are down $0.12 at $117.25. Deferred contracts are finding moderate support, but nearby contracts are struggling which could also be stemming from a pressured cash cattle market and weakening boxed beef prices. There's still plenty of time in the week for the marketplace to trade higher which could give the cash market enough support to trade at least steady. So far there's been no cash cattle trade develop and packers are remaining idle. Asking prices of $110 have been noted in the South while asking prices in the North are yet to develop.
Boxed beef prices are unavailable again due to technical issued from the USDA.
FEEDER CATTLE
Following in Monday's footsteps the feeder cattle contracts are relishing the market's support and are glad to be slowly seeing the market's technical position grow stronger. January feeders are up $0.07 at $140.10, March feeders are up $0.10 at $140.70 and April feeders are up $0.10 at $141.95. It's better to see the slow, constant support given the time of year it is rather than hasty jumps in the market that usually cannot be supported over the long term. The feeder cattle contracts will again face some short-term resistance at $141 but with the market's leisurely mentality it doesn't seem like a pressing matter at the moment to decide if the market should continue to scale higher or relax heading into the middle of the week.
LEAN HOGS
Now that the December lean hog contract has expired, the February lean hog contract has taken the market's spotlight and is comfortably enjoying the day's continued support. February lean hogs are up $0.50 at $66.17, June lean hogs are up $0.37 at $79.57 and July lean hogs are up $0.32 at $80.42. Still, fundamental the market lags. With the modest technical support that's developed this week, the market could stand to gain even more ground if fundamental components such as the market's pork cutout value, was steadily growing. But without strong or continued cutout demand, and weaker cash prices the market scales higher solely on technical support from traders.
The projected lean hog index for 12/14/2020 is up $0.09 at $65.06 and the actual index for 12/11/2020 is up $0.40 at $64.97. Hog prices are lower on the National Direct Morning Hog Report, down $0.85 with a weighted average of $52.80, ranging from $47.00 to $54.00 on 4,604 head and a five-day rolling average of $53.16. Pork cutouts total 259.23 loads with 224.94 loads of pork cuts and 34.29 loads of trim. Pork cutout values: up $0.15, $77.18.
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