GENERAL COMMENTS:
It's been another day of a "good luck with the tough luck Joe" mentality throughout the entire livestock complex. It's not helping matters that corn futures have shot 6 cents higher in the nearby contract as that puts great pressure on the feeder cattle market, which already is feeling depressed given the doggish nature of the current live cattle market's inability to trade higher. March corn is up 7 1/4 cents per bushel and January soybean meal is up $19.10. The Dow Jones Industrial Average is down 126.34 points and NASDAQ is down 288.82 points.
LIVE CATTLE:
Live cattle futures are lower as the market stomachs lower boxed beef prices and expects there to be opposition from packers in regard to the cash cattle market. December live cattle are up $0.07 at $137.02, February live cattle are down $0.35 at $138.50 and April live cattle are down $0.25 at $142.12. There's yet to be any substantial interest in the cash cattle market and trade isn't likely to develop until Wednesday or even later in the week. Asking prices in the South are noted at $140 to $142; the North has yet to disclose what they're asking. Throughout the rest of the year, feedlots know packers are going to try to whittle on the cash market. But, thankfully, showlists are extremely current and feedlots don't need to flush cattle from their yards.
Boxed beef prices are lower: choice down $1.75 ($261.47) and select down $2.79 ($250.85) with a movement of 94 loads (59.66 loads of choice, 16.20 loads of select, 8.77 loads of trim and 9.56 loads of ground beef).
FEEDER CATTLE:
With a 6-cent rally in the nearby corn contract and a cash cattle market expected to find pressure when cattle do begin to trade -- the feeder cattle market isn't overly confident in Tuesday's trade. Thus far throughout the week there have been large runs of calves selling in sale barns as producers realize this week is really their last chance to market any calves before the year's end. Prices are seeing a little pushback as corn prices are making buyers cautious. But, all in all, buyers are still interested and want to have cattle to market in 2022. January feeders are down $0.72 at $164.80, March feeders are up $0.17 at $166.65 and April feeders are down $0.10 at $169.25.
LEAN HOGS:
With the December lean hog contract expiring Tuesday, the market looks to the February 2022 contract for guidance as to how the spot market is trading and to thoroughly understand the market's trajectory. Unfortunately, the entire lean hog futures complex is lower and, despite midday cash prices being slightly higher, the market just can't summon any substantial support. The tough thing about betting on heightened demand in 2022 is that the market can't feel confident about its support until sales start to transpire and stronger demand becomes evident; the last thing the market likes to do is sit and wait. February lean hogs are down $0.55 at $80.20, April lean hogs are down $0.70 at $85.15 and June lean hogs are down $0.67 at $96.32.
The projected CME Lean Hog Index for 12/10/2021 is up $0.60 at $72.18 and the actual index for 12/9/2021 is up $0.63 at $71.58. Hog prices are higher on the National Direct Morning Hog Report, up $0.11 with a weighted average of $58.58, ranging from $57.50 to $65.00 on 4,375 head and a five-day rolling average of $58.18. Pork cutouts total 231.06 loads with 194.23 loads of pork cuts and 36.83 loads of trim. Pork cutout values: down $0.12, $86.91.
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