GENERAL COMMENTS:
Heading into Wednesday afternoon, the livestock contracts would like to see some support enter the marketplace; but at this point in time it's not looking like they are going to have their wishes granted. There hasn't been much interest arise in the cash cattle market and it wouldn't be surprising to see trade wait until Thursday to get underway. March corn is up 1 3/4 cents per bushel and January soybean meal is up $7.80. The Dow Jones Industrial Average is down 74.43 points and NASDAQ is up 32.36 points.
LIVE CATTLE:
Live cattle futures are continuing to chop mostly sideways throughout Wednesday trade with a bearish attitude pressuring the day. With boxes printing lower at noon and the futures market trading with a weaker undertone, the cash cattle market (though having regained substantial leverage) is going to see pushback from packers. December live cattle are down $0.45 at $137.77, February live cattle are down $0.12 at $139.10 and April live cattle are down $0.12 at $142.32. Bids of $220 have been offered in Nebraska, but otherwise the market hasn't seen much interest thus far. Asking prices are set at $144 to $145 in the Southern Plains, and in the North at $224. It wouldn't be unlikely to see trade remain mostly quiet throughout Wednesday and not gain much attention until Thursday, or potentially even Friday.
The Fed Cattle Exchange Auction listed a total of 1,849 (Texas 1,386 head, Kansas 392 head, California 71 head head), none of which actually sold, as they did not meet the reserve prices, which ranged from $134 to $143.50. Opening prices ranged from $132 to $139; high bids ranged from $132.25 to $140
Boxed beef prices are lower: choice down $0.79 ($267.24) and select down $1.10 ($254.58) with a movement of 83 loads (52.19 loads of choice, 12.50 loads of select, 7.18 loads of trim and 10.68 loads of ground beef).
FEEDER CATTLE:
The corn market isn't pressuring the feeder cattle contracts, but without substantial support stemming from either the live cattle contracts or the cash cattle market, the feeder cattle contracts are trading modestly lower Wednesday. January feeders are down $1.25 at $163.77, March feeders are down $0.70 at $166.77 and April feeders are down $0.92 at $169.92. Sale barns only have this week and next before most head out for the remainder of the year to take some much-needed time off. With that being the case, sales are seeing large receipts this week and thus far they've been met with strong interest.
LEAN HOGS:
The lean hog market's lower move has continued into Wednesday and is likely to continue throughout the afternoon. December lean hogs are down $1.07 at $71.00, February lean hogs are down $0.17 at $76.37 and April lean hogs are down $0.35 at $81.70. One of the most frustrating things about the current lean hog market is the back-and-forth nature of the cash and pork cutout values. The market is desperately seeking strong cues from both the technical and fundamental sides of the market to help everyone better understand the long-term trajectory. But with the market's daily knee-jerk reactions (sharply higher one day, sharply lower the next day) a clear vision for the market's outlook is hard to understand. And while hog producers yearn for a clear understanding of the market's path, it's likely this type of back-and-forth nature continues throughout the remainder of the year.
The projected CME Lean Hog Index for 12/7/2021 is down $0.11 at $70.83, and the actual index for 12/06/2021 is up $0.16 at $70.94. Hog prices are lower on the National Direct Morning Hog Report, down $2.66 with a weighted average of $55.52, ranging from $55.00 to $61.00 on 3,860 head and a five-day rolling average of $57.09. Pork cutouts totaled 215.20 loads with 185.07 load of pork cuts and 30.13 loads of trim. Pork cutout
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