General Comments
The cattle contracts continue to trade in a doggish fashion while the lean hog contracts trade modestly higher. Following the strong trade that the cattle contracts saw earlier in the week, traders have grown distant from the live cattle and feeder cattle contracts are most likely are waiting until after the first of the year to see where the markets true direction lays. March corn is up 1 cent per bushel and March soybean meal is up $0.40. The Dow Jones Industrial Average is up 157.31 points and NASDAQ is up 43.56 points.
LIVE CATTLE
Feedlots couldn't care less what the boards doing Wednesday morning as they are determined to get more money for their cattle this week or to carry them over into 2021. The live cattle contracts have traded back and forth throughout Wednesday's early trade but have recently seen some minor support build in nearby contracts, which is most likely stemming from stronger boxed beef prices and the gusto behind the cash market. February live cattle are up $0.15 at $114.72, April live cattle are up $0.05 at $118.82 and June live cattle are down $0.12 at $114.15. The countryside is still mostly quiet with just a few bids seen hitting the table. Live cattle in the North are bid at $110, and dressed cattle are bid anywhere from $172 to $176. Packers are expected to improve their bids as the day trails on and trade is expected to develop before the day's close. Asking prices are around $112 to $114 in the South and $180-plus in the North.
The Fed Cattle Exchange Auction listed a total of 1,015 head, of which 194 actually sold, 821 head were listed as unsold. The state by state breakdown looks like this: TX 951 total head, with 194 head sold at $111.00, 757 head went unsold; NE 64 total head, none of which sold.
Boxed beef prices are higher: choice up $0.56 ($210.86) and select up $4.18 ($199.96) with a movement of 81 loads (43.80 loads of choice, 12.36 loads of select, 7.58 loads of trim and 17.30 loads of ground beef).
FEEDER CATTLE
The feeder cattle market isn't feeling any more optimistic than how the complex was before closing lower Tuesday afternoon. January feeders are down $0.70 at $138.92, March feeders are down $0.82 at $140.42 and April feeders are down $0.82 at 142.15. The market sits in a peculiar place between the Christmas and New Year holiday as the market's interest varies and only has a limited volume. The pressure from rising feed costs continue to worry feedlots but once the market turns to 2021 and regains some normalcy following the holiday jitters, it will become more apparent how real the corn market's price levels are.
LEAN HOGS
As the day nears closer and closer to the noon hour, there's some light regression building in the nearby lean hog contracts, but the deferred contracts are keeping their modest gains still. February lean hogs are up $0.30 at $67.50, April lean hogs are down $0.10 at $70.97 and June lean hogs are down $0.05 at $81.95. Even though the market isn't seeing followed through support from the cash hog market, this week's steady increase through pork cutout values is promising.
The projected lean hog index for 12/29/2020 is down $0.07 at $59.86 and the actual index for 12/28/2020 is down $0.67 at $59.93. Hog prices are lower on the National Direct Morning Hog Report, down $1.64 with a weighted average of $48.40, ranging from $44.00 to $50.00 on 6,944 head and a five-day rolling average of $49.50. Pork cutouts total 196.44 loads with 157.40 loads of pork cuts and 39.04 loads of trim. Pork cutout values: up $0.45, $72.81.
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