GENERAL COMMENTS:
The livestock complex is navigating Wednesday's market cautiously as the contracts yearn for more fundamental support. The cash cattle market has yet to see bids develop from packers, but interest could improve by this afternoon. March corn is down 3 cents per bushel and January soybean meal is up $5.60. The Dow Jones Industrial Average is up 206.89 points.
LIVE CATTLE:
The live cattle complex is a fickle market to monitor right now and until we get past the New Year holiday, it's likely to remain that way. The marekt confidently traded higher earlier in the week and even contemplated testing the market's long-term resistance level in many of the nearby contracts, but come Wednesday traders are needing to see more support from the market's boxed beef prices and from the cash cattle side of things. Packers still haven't shown the cash market any interest and given that they're buying for the holiday shortened week of Christmas, it's likely that they procure very few cattle this week. Eith that being said, they'll still need to participate in the market to some degree as front-end supplies are extremely thin and they only bought 59,000 head in the cash market last week. Asking prices are noted at $156 to $158 in the South and are still unestablished in the North. Packer interest could improve by this afternoon, or it could wait to develop until something Thursday. December live cattle are down $0.17 at $154.72, February live cattle are down $0.47 at $155.87 and April live cattle are down $0.37 at $159.67. Seeing choice cuts down almost $6.00 at noon Wednesday isn't helping the live cattle market's morale whatsoever.
The Fed Cattle Exchange Auction held Wednesday reported seven lots (five lots in Texas and one lot in Colorado), totaling 995 head of cattle, none of which sold. Opening prices were at $153, high bids had a range of $153 to $154.75, but none of these bids met reserve prices of $156 to $157.
Boxed beef prices are mixed: choice down $5.96 ($248.99) and select up $0.06 ($225.52) with a movement of 74 loads (47.09 loads of choice, 13.53 loads of select, 2.69 loads of trim and 10.93 loads of ground beef).
FEEDER CATTLE:
After storming to territory not last explored since early September in Tuesday's market, the feeder cattle market is taking more of a cautious approach to Wednesday's market. It could seem rather backwards to be taking a cautious approach to the market when corn prices are trending lower, but with boxed beef prices closing lower Tuesday afternoon and the live cattle market facing modest pushback Wednesday morning, the feeder cattle market is needing to see more support from its cattle counterpart before it will confidently trade higher again. January feeders are down $0.25 at $183.97, March feeders are down $0.12 at $185.60 and April feeders are up $0.02 at $189.10.
LEAN HOGS:
The lean hog complex is trailing lower into Wednesday's afternoon even through Tuesday's market hinted at the idea that the complex could have found some new technical support. It's not helping that midday pork cutout values are down hard, and the cash hog market hasn't seen much interest either. We are officially in the time-period before Christmas were buying from retailers is hit or miss, and meat prices are extremely volatile. February lean hogs are down $1.32 at $83.25, April lean hogs are down $0.80 at $90.55 and June lean hogs are down $0.60 at $104.95.
The projected lean hog index for Dec. 13 is up $0.06 at $81.68, and the actual index for Dec. 12 is up $0.15 at $81.62. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.48 with a weighted average of $81.15, ranging from $74.00 to $85.00 on 3,717 head and a five-day rolling average of $81.70. Pork cutouts total 174.62 loads with 154.18 loads of pork cuts and 20.44 loads of trim. Pork cutout values: down $5.98, $85.16.
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