GENERAL COMMENTS:
Even though it's the last trading day ahead of the long Christmas weekend, the livestock complex is still engaged and actively trading in the market as this afternoon has a lot of business to unveil. More cash cattle trade is expected to develop and USDA is set to release both a Cattle on Feed report and the Quarterly Hogs and Pigs report. March corn is up 6 3/4 cents per bushel and March soybean meal is up $3.90. The Dow Jones Industrial Average is up 166.95 points.
LIVE CATTLE:
The live cattle complex continues to trail higher as the market is seeing tremendous support. From the unwavering support of the futures complex to the rocket-launch-like price jump in midday boxed beef values, to the unwavering, relentless spirit of cattle feeders who are still going toe-to-toe with packers at this very minute -- the live cattle market is ready to rumble! There are a few bids being reported in parts of Nebraska at $156 to $158 and in Colorado for $155. At this point no one has accepted those offers, but it wouldn't be unlikely to see some more cattle trade ahead of the week's end. Thursday live cattle traded for $155, which is fully steady with the previous week's weighted average, and dressed cattle sold for mostly $249, which is $1.00 higher than last week's weighted average. With feedlots knowing this afternoon's Cattle on Feed Report will likely favor their position, they're in no hurry to trade cattle at steady money. February live cattle are up $0.07 at $157.37, April live cattle are up $0.12 at $161.45 and June live cattle are up $0.20 at $157.47.
Boxed beef prices are higher: choice up $6.32 ($271.53) and select up $3.53 ($245.34) with a movement of 48 loads (33.45 loads of choice, 3.79 loads of select, zero loads of trim and 10.89 loads of ground beef).
FEEDER CATTLE:
The feeder cattle market is trading mostly higher although some of the nearby contracts are facing mild pressure as the noon hour nears. The market continues to cling to the action seen in the live cattle market and sees the added support from midday boxed beef values and the likelihood that cash cattle trade higher yet again -- which seems to be overpowering the onset of higher corn prices for meantime. The market is also anxiously awaiting Friday's Cattle on Feed report where placements are expected to be lower than a year ago -- which bodes extremely well for the feeder cattle market and its desire to keep trading higher. January feeders are down $0.27 at $183.70, March feeders are up $0.02 at $186.42 and April feeders are down $0.07 at $189.82.
LEAN HOGS:
Ahead of the afternoon's big Quarterly Hogs and Pigs report, which is expected to forecast tighter supplies in 2023, the lean hog market is holding its breath trading merely sideways through Friday's morning hours. February lean hogs are down $1.17 at $87.87, April lean hogs are down $0.92 at $95.10 and June lean hogs are down $0.55 at $108.40. The market won't be able to trade the USDA's report this afternoon as it comes out after closing, but if the report is indeed bullish for the year ahead -- then next week's market should have no issue roaring higher to the week.
The projected CME Lean Hog Index for 12/22/2022 is down $0.93 at $78.74, and the actual index for 12/21/2022 is down $0.90 at $79.67. Hog prices are unavailable due to confidentiality issues. We can see however on the Daily Direct Morning Hog Report that 415 head have traded, and that the market's five-day rolling average now sits at $80.00. Pork cutouts total 146.32 loads with 139.22 loads of pork cuts and 7.10 loads of trim. Pork cutout values: up $0.79, $89.55.
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