GENERAL COMMENTS:
Heading into Wednesday afternoon, the livestock contracts are mostly rallying, and that's helped spark a little generosity from packers in this week's cash cattle market. Packers are getting more aggressive in their quest for cattle and have bumped their bids by $1 in some regions. March corn is up 1 3/4 cents per bushel, and March soybean meal is up $6.80. The Dow Jones Industrial Average is up 164.44 points, and the NASDAQ is up 125.59 points.
LIVE CATTLE:
The cash cattle market is kicking itself for trading so early in the week. While it was inevitable that packers were going to push prices lower this week, they could have potentially only seen a $1 decrease as opposed to the $2 to $3 regression if they would have waited longer in the week. The tricky thing about marketing fat cattle over the holidays for feedlots is the irregularity of packers' interest and managing their cattle's weights, as substantial interest may not arise until after the New Year. December live cattle are up $0.20 at $135.72, February live cattle are up $0.32 at $137.27 and April live cattle are up $0.62 at $142.07. The market is seeing quite a bit of packer interest as packers are wanting to get cattle bought and head out for the week. Bids of $217 to $218 are now being offered in Nebraska, and bids of $135 are still being offered in Texas.
Boxed beef prices are mixed: choice down $0.14 ($261.25) and select up $0.09 ($250.01) with a movement of 83 loads (47.09 loads of choice, 8.93 loads of select, 7.70 loads of trim and 19.06 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex would love to be rallying alongside the live cattle and lean hog markets, but upon seeing another day of higher corn prices, the feeder cattle contracts are hesitant. As the market approaches the noon hour, more support is finding its way into the market, but the cautious tone of the complex hasn't changed. January feeders are up $0.77 at $161.62, March feeders are down $0.37 at $161.45, and April feeders are down $0.25 at $165.15. Heading into the afternoon trade, the feeder cattle contracts could still close lower as the market doesn't have anything but technical support to rely on as sale barns aren't trading and the cash cattle market has traded lower this week.
LEAN HOGS:
The lean hog contracts are rallying on strong technical support and on hopeful wishes that Thursday's Hogs and Pigs report does indeed come in bullish. The market has seen the analysts' projections, and with a 3% decline in market hogs, producers are hopeful that cash prices will continue to climb. February lean hogs are up $1.05 at $83.47, April lean hogs are up $1.17 at $86.75 and May lean hogs are up $0.60 at $91.27.
The projected lean hog index for 12/21/2021 is down $0.69 at $72.33, and the actual index for 12/20/2021 is up $0.09 at $73.02. There are no comparisons to be made from Wednesday morning's cash hog report as prices were not disclosed due to confidentiality. But on Thursday morning's National Direct Morning Hog Report, 4,600 head have sold, with the weighted average price being $61.09, ranging from $59 to $64 and the five-day rolling average printing at $59.71. Pork cutouts total 146.24 loads with 129.44 loads of pork cuts and 16.80 loads of trim. Pork cutout values: up $3, $87.91.
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