GENERAL COMMENTS
The livestock complex closed mixed with the cattle contracts rallying as the nearby corn contracts closed lower and with the hope that the cash sector will trade higher again this week. Meanwhile, the lean hog market closed lower with pork demand not showing traders enough assurance to push prices higher. Hog prices are unavailable on the Daily Direct Afternoon Hog Report due to packer submission issues. March corn is down 1 3/4 cents per bushel and January soybean meal is down $4.10. The Dow Jones Industrial Average is up 3.07 points.
LIVE CATTLE:
The live cattle complex closed mildly higher as the market fully anticipates the cash sector to trade higher this week. The cash cattle market didn't see any trade develop as packers didn't offer any bids throughout the countryside. Some early asking prices were noted in the South at $156 to $157 and are still not established in the North. Some bids could begin to materialize by Wednesday, but the week's trade will likely take place on Thursday. However, with the support of the higher close throughout the futures complex, feedlots were given another boost of encouragement to push for higher prices. December live cattle closed $0.10 higher at $152.67, February live cattle closed $0.12 higher at $154.80 and April live cattle closed $0.12 higher at $158.57.
Tuesday's slaughter is estimated at 128,000 head, 1,000 head less than a week ago and 4,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.21 ($254.74) and select down $2.71 ($225.82) with a movement of 152 loads (96.71 loads of choice, 25.86 loads of select, 12.19 loads of trim and 16.98 loads of ground beef). The choice/select spread sits at $28.92.
WEDNESDAY'S CATTLE CALL: $1.00 to $2.00 higher. With front-end supplies of market-ready cattle as thin as they are, and with throughput as aggressive as it is, cash cattle prices will likely be higher again this week.
FEEDER CATTLE:
The feeder cattle complex had a modestly successful day as the market wasted no time advancing its position while corn prices traded lower and while the live cattle market was lending support. January feeders closed $1.12 higher at $178.00, March feeders closed $0.57 higher at $181.17 and April feeders closed $0.45 higher at $184.85. The cash cattle market isn't expected to trade cattle until Wednesday afternoon or more likely on Thursday, but if the market is able to again push prices higher, the feeder cattle market could see another jump at that point. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers and heifers traded $1.00 to $3.00 higher with some instances of $6.00 to $10.00 higher. Steer calves sold for $3.00 to $7.00 higher. Heifer calves sold steady to $3.00 lower. Recent rains and warmer weather have helped improve wheat pasture conditions in the area for cattle. Feeder cattle supply over 600 pounds was 44%. The CME Feeder Cattle Index for Nov. 28: up $1.66, $178.85.
LEAN HOGS:
The lean hog complex closed mixed with the nearby contracts still not seeing the support they desired, while the deferred contracts closed mildly higher. December lean hogs closed $0.47 higher at $81.07, February lean hogs closed $0.60 lower at $84.15 and April lean hogs closed $0.75 lower at $89.75. It was disappointing for the market to see pork cutout values close lower again and for demand to come up short. The pork cutout value was pulled lower by a $9.41 drop in the ham, and by a $3.44 drop in the butt and a $2.30 drop in the belly. Pork cutouts total 331.22 loads with 285.51 loads of pork cuts and 45.72 loads of trim. Pork cutout values: down $3.84, $85.68. Tuesday's slaughter is estimated at 494,000 head, 2,000 head more than a week ago and 15,000 head more than a year ago. The CME Lean Hog Index for Nov. 25: down $0.93, $84.63.
WEDNESDAY'S HOG CALL: Higher. Wednesday's cash hog market will likely be higher as packers haven't procured a sizeable enough volume of hogs to fulfill their upcoming kills
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