GENERAL COMMENTS:
The livestock complex is already starting to see the lackadaisical nature of the holidays work its way into their marketplace. The futures market is stagnant and fundamentally the market can't summon any interest nor support. Hog prices closed higher on the National Direct Afternoon Hog Report, up $1.95 with a weighted average of $60.50 on 8,759 head and a five-day rolling average of $59.31. March corn is up 5 1/4 cents per bushel and January soybean meal is up $14.80. The Dow Jones Industrial Average is down 106.77 points and NASDAQ is down 175.64 points.
LIVE CATTLE:
The holiday slug is hitting the live cattle complex like a ton of bricks. Boxed beef prices took a nosedive lower, the futures complex is stagnant and the outcome for this week's cash cattle market is going to be steady at best. December live cattle closed $0.17 lower at $136.77, February live cattle closed $0.55 lower at $138.30 and April live cattle closed $0.37 lower at $142.00. The cash cattle market saw a few head trade, but it certainly wasn't enough to say that any sort of a trend is set for the week's trade. Asking prices in the North still aren't established and the South is hoping to get somewhere between $140 to $142.
Tuesday's slaughter is estimated at 122,000 head, 1,000 head less than a week ago and 3,000 head more than a year ago.
Boxed beef prices closed lower: choice down $2.50 ($260.72) and select down $4.84 ($248.80) with a movement of 146 loads (82.78 loads of choice, 27.85 loads of select, 17.53 loads of trim and 17.83 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady. Feedlots are hoping to hold the market steady but know that they are going to face opposition from packers. To their advantage is the fact that their showlists are extremely current, but working against them is the fact that boxed beef prices are lower, packers have cattle bought with time and the market is trading sluggishly ahead of the holidays.
FEEDER CATTLE:
The feeder cattle complex didn't have much choice but to trade lower when the market's fundamentals slacked on aiding any support. With a tough fundamental outlook, as boxed beef prices dove lower and the live cattle market traded weaker, the additional pressure of the corn market's modest rally really put a thorn in the side of the feeder cattle market. January feeders closed $0.95 lower at $164.57, March feeders closed $0.07 lower at $166.40 and April feeders closed $0.25 lower at $169.10. Thankfully, feeder cattle demand throughout the countryside hasn't seen a stark drop off, but after this week there will be little action seen throughout sale barns until after the new year. At Joplin Regional Stockyards in Carthage, Missouri, compared to a week ago, feeder steers traded steady to $3.00 higher, and feeder heifers trade steady. The sale noted that they had large receipts and that even though supplies were large, demand held through the sale's entirety. The CME Feeder Cattle Index for Dec. 13: down $0.39, $161.77.
LEAN HOGS:
There's chatter throughout the marketplace that one major packer has decided not to ship pork to California in respect to Prop 12. While the rumor hasn't been confirmed, it's very likely that could be some of the reason why the hog complex has seen little interest thus far this week. February lean hogs closed $0.67 lower at $80.07, April lean hogs closed $0.75 lower at $85.10 and June lean hogs closed $0.65 lower at $96.37. The one strong fundamental sector that saw support through Tuesday's market though was the cash hog market as over 8,500 head traded and prices were $1.95 stronger. Pork cutouts totaled 366.13 loads with 319.02 loads of pork cuts and 47.10 loads of trim. Pork cutout values: down $1.55, $85.48. Tuesday's slaughter is estimated at 483,000 head, 13,000 head more than a week ago and 11,000 head less than year ago. The CME Lean Hog Index for Dec. 10: up $0.60, $72.18.
WEDNESDAY'S CASH HOG CALL: Steady. The cash hog market could see good interest again Wednesday, as packers have been relatively aggressive for roughly two days out of the week and then mostly uninterested in the remaining days.
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