GENERAL COMMENTS:
Friday has treated the livestock complex much better than Thursday did. Hopefully, if the market continues to trade as it is now, the contracts may even be able to round out the day fully higher. The biggest jumps Friday morning are in the lean hog market as hog producers are desperate for the remainder of 2021 to pass as the expectations are that 2022 will be better for the hog market. March corn is down 2 3/4 cents per bushel and January soybean meal is up $9.40. The Dow Jones Industrial Average is up 66.63 points and NASDAQ is up 45.48 points.
LIVE CATTLE:
While the live cattle contracts would have liked to have seen this modest support on Thursday when the cash cattle market was aspiring to trade steady if not a little higher, the complex will gladly take whatever support the market has to offer. December live cattle are up $0.05 at $136.77, February live cattle are up $0.12 at $137.92 and April live cattle are up $0.45 at $141.67. The cash cattle market hasn't seen any renewed interest and it's looking like the bulk of this week's business is done. Asking prices for cattle left on showlists are $142-plus in the South and $222-plus in the North. Thus far throughout the week, live cattle have sold for $138 to $140, mostly at $140, which is $2.00 softer than a week ago. And dressed trade in Nebraska and Iowa ranged from $217 to $220, which is fully steady with last week's business. However, a large majority of those cattle were bought with time. It's likely the market rounds out the day without too much excitement pushing the complex in either direction before trade ends.
Boxed beef prices are higher: choice up $1.42 ($265.97) and select up $2.56 ($254.24) with a movement of 30 loads (16.03 loads of choice, 5.51 loads of select, zero loads of trim and 8.49 loads of ground beef).
FEEDER CATTLE:
With live cattle contracts trading higher and the corn market enduring a minor setback, the feeder cattle contracts are modestly higher going into Friday afternoon. January feeder cattle are up $0.67 at $164.75, March feeders are up $0.87 at $165.90 and April feeders are up $0.80 at $168.65. The market will likely see good buyer participation throughout the sale barns next week, but then the market will see less participation throughout the remainder of the year as the markets break for the holidays. If the live cattle market can trade steady throughout 2021, then the feeder cattle market should stand a good chance at summoning higher prices right from the get-go in 2022.
LEAN HOGS:
The lean hog complex is chomping-at-the-bit to get through the rest of 2021 and jump into the new year where the market's excitement lies. December lean hogs are up $0.27 at $72.70, February lean hogs are up $2.52 at $80.32 and April lean hogs are up $2.42 at $85.47. Hog producers are hopeful that demand will be stronger in the New Year and producers will be able to demand higher prices given that there won't be an overabundance of hogs in the market to pick and choose from. The wild card continues to be China and African swine fever in the countries abroad.
Hog prices are lower on the National Direct Morning Hog Report, down $2.33 with a weighted average of $57.48, ranging from $55.00 to $61.00 on 3,720 head and a five-day rolling average of $57.70. Pork cutouts total 210.62 loads with 176.60 loads of pork cuts and 34.02 loads of trim. Pork cutout values: up $4.86, $91.82.
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