GENERAL COMMENTS:
Light to moderate trade is seen in all livestock futures Tuesday morning with cattle futures holding limited but supportive moves higher in both live cattle and feeder cattle has helped confirm the buyer support that has moved into the market over the past two trading sessions. Although gains remained light during the morning, the ability to hold previous support is creating more interest and likely help to spark increased buyer support through the rest of the trading session.
Hog futures are mixed, with actively traded February futures holding a firm lead, while most other contracts are recording narrow losses. The lack of new demand information for pork over the coming months is likely to limit upside market shifts over the near future.
March corn is up 4 3/4 at $4.863 and January soybean meal is down $2.70 at $410.5. The Dow Jones Industrial Average is up 152.24 at 36,557.17.
LIVE CATTLE:
Narrow to moderate gains have slowly developed through the live cattle futures complex Tuesday morning. Deferred live cattle futures are posting more aggressive gains, although the overall volume in these contracts is much less than spring contract months. The strong triple-digit gains over the past two trading sessions has helped to aggressively push prices away from support levels, but the market remains generally weak and could quickly draw additional buyer support over the near future. Upcoming holiday trade slowdowns may limit additional strength through the end of the month due to limited additional volume.
Cash cattle activity remains extremely quiet Tuesday morning. The underlying support in futures trade may help to create some stability following recent pressure, but both sides are slow to interest at this point. It very well could be later in the week before any cattle get traded this week.
December live cattle are $0.28 higher at $167.25, February live cattle are $0.28 higher at $168.175, April live cattle are $0.38 higher at $171.875.
Boxed beef prices are mixed: choice up $2.68 ($293.11) and select down $0.81 ($258.73) with a movement of 59.56 loads (37.99 loads of choice, 11.58 loads of select, zero loads of trim and 9.99 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have traded mostly higher through much of the morning, although midday buyer support is helping to bring some additional support to the complex. Over the past two trading sessions, sluggish narrow trade was seen during the morning, followed by more active and aggressive buyer support posting triple digit gains each session. A repeat of this move could help spark additional underlying buyer support through all cattle futures.
January feeders are $0.20 higher at $218.15, March feeders are $0.18 higher at $218.775 and April feeders are $0.25 higher at $222.25.
LEAN HOGS:
Lean hog futures are mixed in limited activity Tuesday morning. Firm gains are seen in actively traded February futures contracts as additional market rolling is moving into the February contract from the lightly traded December futures. The rest of the complex is holding light to moderate losses, although very sluggish market interest is seen during the morning with little additional technical or fundamental market information available to significant shift overall market direction.
December lean hogs are $0.15 lower at $68.1, February lean hogs are $0.85 higher at $68.175 and April lean hogs are $0.15 higher at $75.50. Hog Prices are lower on the Daily Direct Morning Hog report, down $2.69 with a weighted average of $49.9, ranging from $44.00 to $52.00 on 2,967 head with a five-day rolling average of $53.40. Pork Cutouts totaled 194.68 loads with 163.34 loads of pork cuts and 31.34 loads of trim. Pork cutout values are up $1.13 at $86.89.
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