GENERAL COMMENTS:
It's a slow and lethargic day for the cattle contracts as the market can't summon an ounce of support. While you may be pressured into thinking that the market's turn bearish, this is normal for the cattle market over the holidays, and real interest isn't likely to pick up until after the new near. March corn is up 1 cent per bushel and January soybean meal is up $5.20. The Dow Jones Industrial Average is down 428.07 points and NASDAQ is down 8.09 points.
LIVE CATTLE
It's a slow day for the live cattle complex as the cash cattle market has seen the bulk of its trade already transpire, and the futures market isn't able to summon much support as the day ticks on. December live cattle are down $0.22 at $135.05, February live cattle are down $0.90 at $136.15 and April live cattle are down $0.55 at $140.40. Boxes are printing higher again but that's likely stemming from the lack of production that took place on Wednesday because of the windstorm that limited production in some Midwest plants. Packers are now playing catch up as they have product spoke for and need to get it out the door.
Boxed beef prices are higher: choice up $0.48 ($263.45) and select up $0.44 ($248.58) with a movement of 57 loads (31.00 loads of choice, 10.36 loads of select, zero loads of trim and 15.95 loads of ground beef).
FEEDER CATTLE
If someone could pull the plug on the corn market's rally and add a little gust of support to the live cattle complex, the feeder cattle contracts may stand a chance at rallying, but given the holiday slug that's already taken over the cattle market, feeders will likely trade sideways to somewhat lower throughout the holidays. January feeders are down $1.77 at $160.80, March feeders are down $2.52 at $161.80 and April feeders are down $2.27 at $165.00. With the corn market's rally and the high cost of all inputs, it's becoming a noticeable trend that calf buyers are seeking calves/feeders that are heavier as opposed to lightweight calves, as they'll require more inputs to get finished out.
LEAN HOGS
Unlike the cattle contracts, the lean hog market has been able to sustain the rally that developed Thursday and is heading into Friday's afternoon fully higher. February lean hogs are up $0.72 at $81.07, April lean hogs are up $0.12 at $85.00 and June lean hogs are up $0.02 at $96.12. It was surprising to see cash hog prices slightly higher Friday morning with already 4,430 head traded. However, ith the interest that packers have seen in the pork cuts, it makes sense that they are paying close attention to their hog supplies and making sure not to run low, despite processing speeds being lower in the weeks ahead.
The projected lean hog index for Dec. 16 is down $0.08 at $72.33, and the actual index for Dec. 15 is up $0.11 at $72.41. Hog prices are higher on the National Direct Morning Hog Report, up $0.21 with a weighted average of $59.62, ranging from $58.00 to $63.00 on 4,430 head and a five-day rolling average of $58.97. Pork cutouts total 195.63 loads with 154.26 loads of pork cuts and 41.37 loads of trim. Pork cutout values: down $0.57, $90.92.
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