GENERAL COMMENTS:
Light to moderate gains are seen in most livestock futures contracts midday Friday as traders are focusing on the potential for additional outside market direction to have a bigger impact in overall livestock price shifts through the end of the month.
Live cattle futures have spent most of Friday morning mixed to mostly lower, while feeder cattle and lean hog futures are expanding the gains seen Thursday. It is likely that limited trade volume will develop through the end of the session, although, with the holiday's quickly approaching, it is uncertain just how much active trade will develop through the end of the year. Without any significant outside market direction, there could be some much-needed market stability developing in both cattle and hog futures in the next few days.
March corn is up 1 at $4.803 and January soybean meal is down $0.90 at $402.8. The Dow Jones Industrial Average is up 22.80 at 37,271.15.
LIVE CATTLE:
Live cattle futures are trading mixed in a very narrow trading range Friday morning. Overall volume remains sluggish, although traders seem very comfortable with the ability to hold recent gains going into the weekend.
With the holidays and year end quickly approaching, there will still be some focus on end-of-the-year positioning, but the recent pressure in the market is still leaving the complex oversold, which is expected to limit additional downside of the market in the upcoming weeks. The lack of emotionally driven market moves may add some additional stability to the complex, allowing for potential gains following the holiday season.
Cash cattle activity is generally sluggish Friday morning with A few deals are being reported in parts of Nebraska at $168, $2 lower than last week's weighted average. The South remains locked in a standoff as producers hold out for higher money. The last two days have shown us a light trade in the North at mostly $267 to $268 dressed, and $167 to $168 live. Only a handful of cattle have been reported sold in the South. Asking prices are around $170 in the South, and $270 in the North.
December live cattle are $0.03 lower at $167.475, February live cattle are $0.15 higher at $168.075, April live cattle are $0.03 higher at $171.60.
Boxed beef prices are mixed: choice down $0.24 ($292.08) and select up $3.27 ($261.53) with a movement of 90.80 loads (52.81 loads of choice, 8.86 loads of select, 18.47 loads of trim and 10.66 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are holding aggressive triple-digit gains as buyers have steadily moved back into the complex following the midweek pullback. The current shift higher and continued gains over the last few days is positioning for a strong weekly close in all nearby feeder cattle futures. This positive market move is likely to help stimulate additional technical support across the complex despite very little changes in market fundamentals.
January feeders are $0.35 higher at $219.7, March feeders are $0.55 higher at $220.675 and April feeders are $0.70 higher at $225.025.
LEAN HOGS:
Lean hog futures have continued to push prices higher Friday, as traders are focusing on the recent support in financial and stock markets, while helping to increased buyer support and move prices away from recent market lows. With December contracts now expired, traders are focusing exclusively on the February and April contract months, which is helping to build optimism about better futures and cash values through the middle of 2024. Firm gains are expected to hold through the end of the trading session, although there is very little new market direction expected ahead of the weekend break.
February lean hogs are $1.23 higher at $71.7, April lean hogs are $0.93 higher at $78.1 and May lean hogs are $0.73 higher at $84.775. Hog Prices are lower on the Daily Direct Morning Hog report, down $0.80 with a weighted average of $48.43, ranging from $45.00 to $49.00 on 622 head with a five-day rolling average of $49.60. Pork Cutouts totaled 139.39 loads with 124.15 loads of pork cuts and 15.24 loads of trim. Pork cutout values are down $0.31 at $83.02.
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