GENERAL COMMENTS:
It's a slow, quiet day for the livestock complex. Even though the futures market may be open and lightly trading, the market sits without traders actively or eagerly engaged and the cash market business is wrapped up for the week. Comments will be short, sweet and to the point today as vital market-breaking information is limited and USDA isn't releasing any reports the New Year's Eve. March corn is up 1/2 cent per bushel and March soybean meal is down $1.00. The Dow Jones Industrial Average is down 74.07 points and NASDAQ is down 43.84 points.
LIVE CATTLE:
After trading stronger earlier this week, live cattle futures are drifting sideways, simply passing away the day before kicking back and enjoying the weekend festivities. February live cattle are down $0.27 at $139.70, April live cattle are down $0.02 at $144.85 and June live cattle are down $0.17 at $139.25. It's likely the market keeps with this sideways, uneventful chop through the rest of the day as there isn't anything to jazz the market into trading higher or lower. Come next week, the market will be eventful though, as packers operate at a normal schedule, sales barns kick off the New Year with heavy receipts and retailers begin to restock their coolers. There's a very slim chance some cash cattle trade could develop in the South but given that we haven't heard even the slightest peep thus far into Friday's trade, it is not likely anything will develop before the weekend.
FEEDER CATTLE:
Feeder cattle futures are slightly higher as the market cherishes the fact that corn has been pressed to trade lower recently. Next week should be a powerful week for feeders given that sale barns will reopen. January feeders are up $0.52 at $166.85, March feeders are up $1.00 at $170.00 and April feeders are up $0.85 at $172.70. Next week the feeder cattle complex could struggle if, for some reason, the corn market leaps higher and scares order buyers away from buying feeders. But given how strong the cash cattle market has been, buyers are expected to jump at the opportunity to buy true feeders.
LEAN HOGS:
The lean hog complex is trading much like the cattle contracts -- chopping sideways, pacing through Friday without much activity to drive the prices one way or another. February lean hogs are down $0.95 at $81.75, April lean hogs are down $0.70 at $87.12 and June lean hogs are down $0.22 at $98.25. Next week the market will have a plethora of new dynamics to manage as Prop12 go into effect. So enjoy the slow day today as next week will most likely be a wild ride.
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