Wednesday Midday Livestock Market Summary - Support Developing in Contracts

 General Comments

Light support is developing in the feeder cattle contracts and substantial support rallying the entire lean hog contracts. Meanwhile the live cattle contracts are facing some pressure in nearby contracts but there is mild support developing in deferred. The market's cash cattle trade is still quiet with no bids or asking prices surfacing. March corn is up 4 1/4 cents per bushel and January soybean meal is up $2.20. The Dow Jones Industrial Average is down 52.32 points and NASDAQ is down 75.19 points.

LIVE CATTLE

The live cattle market has been the most apprehensive and cautious about trading higher but as the noon hour is approaching more and more support is filtrating through the market. December live cattle are down $0.52 at $107.32, February live cattle are up $0.10 at $110.85 and April live cattle are down $0.05 at $114.87. The deferred live cattle contracts are seeing more support whereas the nearby contracts are fighting some resistance. The market is cautious not to trade boldly higher while the cash market is undecided this week and boxed beef prices are scaling lower. There were technical difficulties Wednesday morning that didn't allow for the Fed Cattle Exchange to host their weekly sale. The rest of the countryside remains quiet with bids still yet to surface. Southern asking prices range from $108 to $110, and the North has yet to set their prices.

Boxed beef prices are lower: choice down $3.93 ($221.09) and select down $1.01 ($204.41) with a movement of 115 loads (78.84 loads of choice, 13.01 loads of select, 10.72 loads of trim and 12.91 loads of ground beef).

FEEDER CATTLE

The feeder cattle contracts are unsure whether they can trust the support that's tipped around the market Wednesday morning. January feeders are down $0.25 at $137.32, March feeders are up $0.27 at $138.77 and April feeders are up $0.32 at $140.37. The market has traded on both sides of steady as the market needs traders to come in more boldly if the contracts are to trade higher. Meanwhile the corn market's $0.03 to $0.04 rally in nearby contracts is undermining any support that is trying to build and grow.

LEAN HOGS

Hog prices are being fueled by moderate support heading into Wednesday's afternoon trade. December lean hogs are up $0.45 at $65.00, February lean hogs are up $0.17 at $65.77 and April lean hogs are up $0.20 at $69.42. It's looking like the market isn't real keen on heading below the $64.00 support plane and could see some technical support to trade mildly higher.

The projected lean hog index for 12/8/2020 is up $0.04 at $65.66, and the actual index for 12/7/2020 is down $0.18 at $65.62. Hog prices are lower on the National Direct Morning Hog Report, down $0.67 with a weighted average of $54.68, ranging from $51.50 to $56.00 on 4,042 head and a five-day rolling average of $55.57. Pork cutouts total 170.48 loads with 142.59 loads of pork cuts and 27.89 loads of trim. Pork cutout values: up $0.03, $78.42.