GENERAL COMMENTS:
The livestock complex rounded out the day mixed as both the lean hog and feeder cattle markets were well supported through Tuesday's close, but the live cattle contracts remained cautious. Still no sizeable sales have developed in the cash cattle market, but packer demand could improve on Wednesday. December corn is down 4 3/4 cents per bushel and January soybean meal is down $4.50. The Dow Jones Industrial Average is up 123.74 points.
LIVE CATTLE:
The live cattle complex closed mixed as the contracts wanted to follow in the path of the feeder cattle market, but without knowing how this week's cash cattle trade is going to pan out -- traders didn't want to get ahead of themselves, or the market. December live cattle closed $0.40 higher at $186.90, February live cattle closed steady at $187.70 and April live cattle closed $0.10 lower at $189.55. It's encouraging that boxed beef prices are again seeing support, and feedlot managers will likely make note of that as they desire to push the cash cattle market higher again this week. Given that feedlot managers are sitting with mostly current showlists, it's likely that trade will be delayed until Friday as feedlot managers are more apt to roll over their showlists this week than they are to sell for lower prices. Asking prices are noted in the South at $189 but are still not estimated in the North.
Tuesday's slaughter is estimated at 126,000 head -- steady with a week and a year ago.
Boxed beef prices closed higher: choice up $1.86 ($311.57) and select up $1.75 ($275.49) with a movement of 129 loads (80.56 loads of choice, 24.25 loads of select, 4.86 loads of trim and 19.52 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat higher. Given that boxed beef prices are trading higher packers won't want to be short bought if there's an uptick in demand which could prices another $1.00 to $2.00 higher again this week.
FEEDER CATTLE:
The momentum that spurred the feeder cattle complex higher throughout Monday's market remained the core theme for the complex again through Tuesday's trade. With cattle imports from Mexico currently being restricted, and no one knowing for how long the import restriction will last, bullishness remains the core theme for the feeder cattle complex as prices will likely continue to clip higher and higher as limited supplies amid eager buyers will have that effect. January feeders closed $2.62 higher at $258.10, March feeders closed $2.15 higher at $256.47 and April feeders closed $1.97 at $257.50. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers and heifers traded $4.00 to $10.00 higher, with instances up to $15.00 higher. Steer and heifer calves sold $10.00 to $15.00 higher with instances up to $20.00 higher. Feeder cattle supply over 600 pounds was 46%. The CME feeder cattle index 11/25/2024: up $0.99, $255.71.
LEAN HOGS:
The lean hog complex powered through the day as the market closed anywhere from $1.00 to $2.00 higher thanks to tremendous trader support. Again, this afternoon pork demand wasn't helpful as the carcass prices drifted over $2.00 lower mainly because of the rib's $7.61 drop, and the loin's $4.90 drop. But nevertheless, traders still managed to support the contracts through the day, and they blew through the current resistance threshold as most of the nearby contracts leaped to new contract highs. December lean hogs closed $1.12 higher at $83.10, February lean hogs closed $2.35 higher at $88.27 and April lean hogs closed $1.45 higher at $91.57. Hog prices on the Daily Direct Afternoon Hog Report averaged $87.86 on 8,292 head. Pork cutouts totaled 340.36 loads with 309.88 loads of pork cuts and 30.48 loads of trim. Pork cutout values: down $2.18, $91.15. Tuesday's slaughter is estimated at 489,000 head -- steady with a week ago and 7,000 head more than a year ago. The CME lean hog index 11/22/2024: down $0.55, $86.46.
WEDNESDAY'S HOG CALL: Lower. Given that packers bought over 8,000 head today and that demand isn't that strong this week -- it's likely that the bulk of this week's trade is essentially done with.
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