General Comments
Early Wednesday morning traders showed no signs of being interested in the livestock contracts, but as the day moves closer and closer to the noon hour, traders have decided to relook at the cattle contracts. There's been a light movement of cash cattle again in the North for mostly $3 to $5 lower than last week's averages. March corn is up 2 1/4 cents per bushel, and January soybean meal is up $7.70. The Dow Jones Industrial Average is down 53.06 points, and the NASDAQ is up 45.95 points.
LIVE CATTLE
Even though earlier in the week traders were opposed to looking at the live cattle market, come Wednesday morning, the market has been fully supported by traders. December live cattle are up $0.20 at $108.80, February live cattle are up $0.92 at $113.80 and April live cattle are up $0.72 at $117.85. The futures market's support comes at a pivotal time as cash cattle trade is really starting to test the week. For those feedlots who sold earlier in the week for $3 to $5 lower, they look at Wednesday's board and wonder if they pulled the trigger too soon. It's still going to be difficult for feedlots to move the market higher, or realistically even hold it steady considering that there's been renewed trade again Wednesday at $105 live and $165 to $167 dressed, which is $3 to $5 lower than a week ago. But given that there hasn't been movement throughout the entire feeding sector means that there's still a chance that cash cattle advocates could pull off some steady trade.
Boxed beef prices are mixed: choice down $1.95 ($206.87) and select up $0.28 ($192.48) with a movement of 86 loads (54.68 loads of choice, 16.59 loads of select, zero loads of trim and 14.99 loads of ground beef).
FEEDER CATTLE
As the noon hour rolls around, support for the cattle contracts has surged and allows for the feeder cattle market to trade fully higher into the afternoon. January feeders are up $0.72 at $140.82, March feeders are up $0.75 at $141.65 and April feeders are up $0.65 at $142.82. It didn't look like the support was going to come through earlier Wednesday morning as traders were quiet and the complex was left with few other options but to trade lower. But as the market has progressed through the day, traders have stepped up and are willing to reinvest in the cattle contracts.
LEAN HOGS
The lean hog market was hoping to continue with its steady upward scale, but traders have veered away from nearby lean hog contracts Wednesday morning as the market looks for fundamental support to compliment the last couple days' worth of technical drive. February lean hog are down $0.65 at $65.80, June lean hogs are down $0.35 at $79.77 and July lean hogs are down $0.50 at $80.47. Unless traders grow cold to the live cattle complex like they have been early this week, it's unlikely that the market will see adequate support before Wednesday's afternoon close.
The projected lean hog index for 12/15/2020 is down $0.09 at $64.97, and the actual index for 12/14/2020 is up $0.09 at $65.06. Hog prices are lower on the National Direct Morning Hog Report, down $0.25, with a weighted average of $53.39, ranging from $46 to $56 on 7,701 head and a five-day rolling average of $52.97. Pork cutouts total 163.46 loads with 150.86 loads of pork cuts and 12.60 loads of trim. Pork cutout values: up $1.48, $75.62.
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