GENERAL COMMENTS:
It was a quiet day for the livestock complex with little interest from traders helping drive the market, so the complex trended idly through all of Friday's trade. March corn is down 2 3/4 cents per bushel and March soybean meal is down $4.60. The Dow Jones Industrial Average is down 59.78 points and NASDAQ is down 96.59 points.
Friday to Friday livestock contracts scored the following changes: December live cattle gained $2.05, February live cattle $1.63, January feeder cattle gained $2.00, March feeder cattle gained $4.65, February lean hogs gained $0.45, April lean hogs gained $0.75.
LIVE CATTLE:
The live cattle contracts rounded out the day mixed -- slightly lower in the nearly contracts but modestly higher in the deferred. Without there being any more cash cattle trade and without USDA sharing any new data, the market's tone was rather quiet and uneventful. February live cattle closed $0.27 lower at $139.70, April live cattle closed $0.05 lower at $144.82 and June live cattle closed $0.12 higher at $139.20. Packers filled their needs earlier in the week and weren't willing to give the South $140 so a lot of Southern feedlots have cattle to roll over into next week. Northern dressed trade took place mostly on Tuesday and Wednesday with a full range of $218 to $226, mostly $220 to $222, $3 to $5 higher than the prior week's weighted average basis Nebraska. Thursday some light business was reported in Texas at $138, $3 higher than previous week. Kansas deals were few and far between on Thursday, but a few were listed at $138, also $3 higher.
MONDAY'S CASH CATTLE CALL: Higher. Heading into next week's trade, feedlots are expected to see heighted interest from packers, as over the last two weeks their purchases have been minimal and the market will finally be back to a normal schedule.
FEEDER CATTLE:
The feeder cattle contracts walked out of Friday's market with a fully higher close. With the corn market's mostly sideways trade throughout the day, the feeder cattle contracts had no troubles rallying higher as the market is anxious to roll into next week given that the cash cattle market is rallying and that it will be the first big run of sales since before the week of Christmas. January feeders closed $0.55 higher at $166.87, March feeders closed $0.95 higher at $169.95 and April feeders closed $0.90 higher at $172.75. The CME Feeder Cattle Index for Dec. 30: up $1.66, $165.21.
LEAN HOGS:
The lean hog market traded lower throughout the day as the market felt the effects of traders being absent from the market, the negative effects from Thursday's export report and then just plain nervousness of Prop 12 going into effect next week. February lean hogs closed $1.22 lower at $81.47, April lean hogs closed $1.10 lower at $86.72 and June lean hogs closed $0.92 lower at $97.55. First quarter hog demand typically isn't extremely strong in the U.S., so heading into next week pork cutout values are a wildcard. Though Prop 12 prices of California bound hogs are supposed to be reported on a specialty report, the market will still likely see some shifts as the kinks of the new onset get worked out. The CME Lean Hog Index for Dec. 29: unavailable at this time.
MONDAY'S CASH HOG CALL: Steady. With so much still unknown about Prop 12, the market will likely trade cautiously.
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