GENERAL COMMENTS:
The technical side of the livestock complex is having a great time, rallying higher into Tuesday afternoon. But the fundamental side of the market is gravely struggling. Without there being a lot of support for the pork cutouts or boxed beef prices, and with slower processing speeds this week, it's hard for the cash markets to see much upside potential during the holidays. March corn is up 5 1/2 cents per bushel and January soybean meal is up $5.90. The Dow Jones Industrial Average is up 497.91 points and NASDAQ is up 214.88 points.
LIVE CATTLE:
The rally throughout the futures complex has sparked the cash cattle market to see some interest and, as we full-heartedly assumed, the bids are coming in lower than last week. Even though the futures complex is striding out with an impressive rally, the fundamental side of the market is having a hard time supporting the technical rally as the doggish tones of the holidays never bode well for the cash markets. December live cattle are up $1.00 at $135.47, February live cattle are up $1.30 at $137.30 and April live cattle are up $1.37 at $141.55. The cash cattle market has seen a few head trade in Texas for $135, which is $1.00 to $3.00 lower than last week's average. Bids of $134 live and $212 dressed have been noted in Kansas and bids of $134 live and $216 dressed in Nebraska. This week's cash cattle trade isn't expected to be much in volume and will wrap up rather quickly.
Boxed beef prices are mixed: choice up $0.33 ($262.71) and select down $0.88 ($249.79) with a movement of 68 loads (46.26 loads of choice, 12.43 loads of select, zero loads of trim and 9.35 loads of ground beef).
FEEDER CATTLE:
Even though the corn market is rallying, feeder cattle contracts are taking all the support that's come with Tuesday's arrival and are $1.00 to $2.00 higher throughout the entire complex. January feeders are up $1.95 at $161.17, March feeders are up $1.80 at $162.30 and April feeders are up $2.07 at $165.82. The rally comes as a pleasant surprise as the market was anticipating a week of entirely lower trade given that it's the week of Christmas and the holidays usually blanket the market with a lethargic tone.
LEAN HOGS:
The push in the lean hog market is solely stemming from the support that drove the futures contracts higher Tuesday. February lean hogs are up $1.45 at $80.92, April lean hogs are up $0.97 at $84.47 and June lean hogs are up $1.00 at $95.80. While the cash market trades thinly, and pork cutout prices wane lower, traders have stepped into Tuesday's market anxious to do a little trading. After the last couple of days of sideways chopping trade, the market feels comfortable supporting higher moves. If by some chance the pork cutout value can close higher, the door could be open for the market to trade higher Wednesday.
The projected CME Lean Hog Index for 12/20/2021 is up $0.09 at $73.02 and the actual index for 12/17/2021 is up $0.60 at $72.93. Hog prices are unavailable to due confidentiality, but we can see only 5,475 head have sold and the five-day rolling average sits at $59.09. Pork cutouts total 180.00 loads with 158.01 loads of pork cuts and 21.99 loads of trim. Pork cutout values: down $1.08, $85.41.
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