Wednesday, December 23, 2020

Wednesday Midday Livestock Market Summary - Contracts Catch Another Gust of Support

Though the livestock contracts trailed into Wednesday with a shaky start, the market leans into the afternoon fully higher. There's been some light trade from the Fed Cattle Exchange for $110, which has feedlots grinning from ear to ear as the market should be able to trade fully higher, especially considering that the board is trading positively. March corn is up 5 3/4 cents per bushel and March soybean meal is up $6.20. The Dow Jones Industrial Average is up 208.41 points and NASDAQ is up 9.43 points.

LIVE CATTLE

Feedlots have seen their Christmas wishes come true as the cash cattle market jumps $2.00 higher in the South while the North has yet to test this week's market. It's been helpful that Wednesday's futures complex has traded higher and continues to do so rolling into the afternoon. December live cattle are up $1.07 at $111.40, February live cattle are up $0.92 at $114.35 and April live cattle are up $0.80 at $118.45. More cash cattle trade is expected to develop Wednesday afternoon as the North still needs to move some cattle. This week's trade is anticipated to be light again, but next week's trade should be sizable. There's a big snowstorm rolling along I-29 from Omaha all the way to Grand Forks, North Dakota and extending along I-90 up into Minnesota. Heavy winds and blizzard conditions are making travel difficult.

Boxed beef prices are lower: choice down $1.92 ($208.75) and select down $0.90 ($198.69) with a movement of 58 loads (31.16 loads of choice, 11.33 loads of select 7.83 loads of trim and 7.85 loads of ground beef).

FEEDER CATTLE

The feeder cattle complex has been the last to jump on the bandwagon to trade higher, and for the most part the contracts are trading higher into the afternoon even though corn prices are rallying $0.05 in nearby contracts. January feeders are up $0.32 at $140.22, March feeders are down $0.07 at $141.80 and April feeders are up $0.02 at $143.60. The market has had phenomenal technical support over the last month and really has blazed a path for strong fundamental support to carry feeder cattle prices higher throughout the countryside.

LEAN HOGS

The lean hog market is seeing substantial support develop heading into the afternoon as nearby contracts rally anywhere from $0.70 to $1.07 higher. February lean hogs are up $1.07 at $67.10, April lean hogs are up $0.72 at $70.75 and June lean hogs are up $0.45 at $81.65. The market is waiting anxiously for Wednesday's Quarterly Hogs and Pigs Report which will share key insight as to how what the market's availability of hogs looks like for the near future.

The projected lean hog index for 12/22/2020 is down $0.42 at $61.62, and the actual index for 12/21/2020 is down $0.51 at $62.04. Hog prices are lower on the National Direct Morning Hog Report, down $1.03 with a weighted average of $50.29, ranging from $44.00 to $52.00 on 5,540 head and a five-day rolling average of $50.78. Pork cutouts total 157.73 loads with 130.92 loads of pork cuts and 26.80 loads of trim. Pork cutout values: down $1.69, $66.47.




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