GENERAL COMMENTS:
Thursday rounded out the week in a strong manner for the livestock sector with as a higher close seen in most contracts. Heading into next week, the market is sitting in a fine position to see the futures market supported again and to see robust cash cattle trade. March corn is up 3 3/4 cents per bushel and March soybean meal is down $4.90. The Dow Jones Industrial Average is up 70.04 points and NASDAQ is up 33.62 points.
** The futures market closed early Thursday afternoon and will not trade at all on Friday. USDA will not be sharing any reports on Thursday or Friday but will be back Monday morning.
Merry Christmas!
LIVE CATTLE:
Feedlots are kicking up their heels and rolling into the Christmas holiday with a little extra cheer this year. Prices are still lower than what they'd like to see, but a stronger trading week on both the board and throughout the cash market helps cheer up everyone's spirit. December live cattle closed $0.22 higher at $112.15, February live cattle closed $0.25 higher at $114.97 and April live cattle closed $0.27 stronger at $118.97. The bulk of this week's cash cattle trade developed midday Wednesday as feedlots were dead set on getting their full asking prices. There was a little clean-up trade Thursday but only on a limited sample in Nebraska. Southern live cattle traded for mostly $110 (which is $2.00 higher than last week), live cattle in the North traded for mostly $109 to $110 ($1.00 to $2.00 stronger) and dressed cattle in the North traded for $172 ($4.00 higher).
MONDAY'S CASH CATTLE CALL: Higher. Seeing that packers have only bought limited supplies for the last three weeks leads one to believe that next week's trade is going to be stout as packers will need cattle. The South has already come out and said that they intend to price their cattle $2.00 higher at $112.
FEEDER CATTLE:
The feeder cattle contracts clung to their profits through closing and had a successful day before heading into the holiday weekend. January feeder cattle closed $0.65 stronger at $140.92, March feeders closed $0.37 higher at $142.32 and April feeders closed $0.17 higher at $143.92. Heading into next week's trade, the countryside will be idle as most sale barns aren't having feeder cattle sales until after the first of the year, but there are some large female sales scheduled. The CME feeder cattle index for Dec. 23: down $0.17, $139.82.
LEAN HOGS:
The lean hog complex shot higher Wednesday afternoon and for the most part was able to defend its new position through Thursday's close. Nearby contracts fought some modest pressure but for the most part the market closed higher. February lean hogs closed $0.90 lower at $66.95, April lean hogs closed $0.20 lower at $71.10 and June lean hogs closed $0.17 higher at $82.32. The hog market really needs to see some fundamental support come in to compliment the technical movement the markets recently had. The CME lean hog index for Dec. 22: down $0.42, $61.62.
MONDAY'S CASH HOG CALL: Steady. It wouldn't be surprising to see the cash hog market modestly supported early next week as packers come off a long weekend.
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