GENERAL COMMENTS:
Cattle futures moved higher through the trading session, starting with light gains in most contracts, but holding mixed activity through a portion of Tuesday morning. As increased volume developed, traders focused on the potential to step back into the complex following the previous two days of gains. The most aggressive support came in deferred contracts with less concern about demand pressure with increased technical support developing across the entire complex.
Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.89 with a weighted average of $48.77 on 10,046 hogs. March corn closed up 3 3/4 at $4.853 and January soybean meal closed down $2.90 at $410.3. The Dow Jones Industrial Average is up 173.01 at 36,577.94.
LIVE CATTLE:
Live cattle futures quickly followed the feeder cattle complex higher once again. Although a string of three upward moving days is far from a long-term trend, this consistent move higher is more positive consistency seen in the live cattle market for quite a while. The most aggressive price support developed in deferred contracts as traders focused on regaining some of the market pressure back in the last half of 2024, focusing on potential demand support and an already depressed market structure. The ability to continue the upward shift midweek will go a long way in helping stimulate additional technical support for the week.
Cash cattle markets remain quiet with bids and asking prices still unavailable in all areas. Feeders are looking to create some much-needed stability this week, and likely focusing on steady to higher price levels in order to show significant interest, at least before the end of the week.
December live cattle closed $1.53 higher at $166.975, February live cattle closed $2.18 higher at $167.9 and April live cattle closed $2.20 higher at $171.5. December live cattle closed $0.73 higher at $167.7, February live cattle closed $0.70 higher at $168.6 and April live cattle closed $0.90 higher at $172.4.
Tuesday's slaughter is estimated at 127,000 head, 1,000 head more than a week ago and 365,000 head less than a year ago.
WEDNESDAY'S CATTLE CALL: Steady. Quiet activity is helping focus on the potential for steady to higher prices, although trade may be delayed and heavily impacted on futures direction over the next couple of days.
FEEDER CATTLE:
Triple-digit gains developed in all feeder cattle futures Tuesday, although the support in the complex was much more subdued than the past two trading days. The most aggressive gains developed in deferred contract months, focusing on longer-term market direction. Cash feeder cattle prices in the National Oklahoma were steady last week on moderate demand, although overall numbers were significantly below year ago and the previous week's levels.
January feeders closed $1.30 higher at $219.25, March feeders closed $1.00 higher at $219.6 and April feeders closed $1.35 higher at $223.35. The CME Feeder Cattle Index for Dec. 10: down $2.32, $216.05.
LEAN HOGS:
Lean hog futures remained mixed the entire session. Although firm gains developed in actively traded February futures, the underlying weakness in the complex pushed deferred prices lower based on concern of longer-term pork demand growth surrounding current supply gains of China pork production and how this will impact pork exports in the upcoming year.
December lean hogs closed $0.43 lower at $67.825, February lean hogs closed $0.93 higher at $68.25 and April lean hogs closed $0.13 higher at $75.475. Tuesday's hog slaughter is estimated at 479,000 head, 9,000 head less than a week ago and 9,000 head less than a year ago. Pork Cutouts totaled 355.93 loads with 295.47 loads of pork cuts and 60.46 loads of trim. Pork cutout values are down $2.66 at $83.96. The CME Lean Hog Index for Dec.8: down $0.83, $67.93.
WEDNESDAY'S HOG CALL: Steady. Limited support in cash hog prices and underlying pressure may continue to limit higher price levels early Wednesday.
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