General Comments
It's been a back and forth day for the livestock contracts as the market would love to continue rallying but traders are growing a little skeptical of how much higher they should support the market before the New Year. The cash cattle market is still quiet with the marketplace idle without any bids. March corn is up 9 3/4 cents per bushel and March soybean meal is up $7.40. The Dow Jones Industrial Average is down 44.27 points and NASDAQ is down 55.41 points.
LIVE CATTLE
As heavy snow fall accumulates in parts of Nebraska and Iowa the live cattle market scales lower. February live cattle are down $0.32 at $115.45, April live cattle are steady at $119.52 and June live cattle are down $0.02 at $114.77. Monday's advancement moved the market to long-term resistance levels and leaves the market teetering on whether higher trade should be boldly sought, but also leaves the market wondering if now isn't quiet the time. Whether the market decides to climb higher or not this week with New Year's holiday quickly approaching, the market will be faced with the same question once again in 2021 as the market's fundamentals continue to strengthen. The cash cattle market is still mostly quiet with asking prices in the South at $112 to $113 and dressed cattle in the North priced at $180-plus. There's been some cattle bid on in Nebraska for $110, but feedlots thus far aren't accepting.
Boxed beef prices are mixed: choice up $2.23 ($210.05) and select down $1.47 ($195.18) with a movement of 60 loads (37.60 loads of choice, 11.30 loads of select, zero loads of trim and 11.45 loads of ground beef).
FEEDER CATTLE
As Tuesday moves closer and closer to the noon hour, the feeder cattle contracts keep scaling lower feeling pressure especially in the nearby contracts as well as from the storm moving across Nebraska and Iowa. January feeders are down $1.07 at $139.92, March feeders are down $1.22 at $141.37 and April feeders are down $1.07 at $143.05. Thankfully the countryside is still relatively quiet for sales this week though there are some specialty sales offered before the first of the year. For the most part cow-calf producers are waiting until after the first of the New Year to market their calves so thankfully the snow should be past as that point. Even though most of the country has been blessed with good weather late this fall and early into this winter, temperature swings are incredibly tough on calves and can be especially strenuous for those new feeders in feedlot.
LEAN HOGS
While the cattle contracts are facing a slight pull-back from traders the lean hog contracts are finding more support as the day progresses onward. February lean hogs are up $0.80 at $67.30, April lean hogs are up $0.17 at $70.92 and June lean hogs are down $0.10 at $81.77. It helps that the market is seeing dual support not only from the futures market but also from the cash hog market and pork cutout values. The market could stand to trade slightly higher if fundamental support continues to shine through.
The projected lean hog index for 12/28/2020 is down $0.67 at $59.92, and the actual index for 12/23/2020 is down $1.02 at $60.60. Hog prices are higher on the National Direct Morning Hog Report, up $0.19 with a weighted average of $50.01, ranging from $44.00 to $51.50 on 7,150 head. Pork cutouts total 206.33 loads with 179.92 loads of pork cuts and 26.41 loads of trim. Pork cutout values: up $1.56, $73.41.
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