GENERAL COMMENTS:
December live cattle futures are in the spotlight Friday morning with the only livestock contract posting triple-digit gains as traders prepare for contract expiration later Friday. With the exception of December live cattle trading nearly $2.50 per cwt higher the rest of the complex remains mixed within a narrow to moderate range. Trade volume remains extremely sluggish and is expected to continue through the rest of the trading session with most traders content with previous position adjustments, and waiting until the new year before actively stepping back into the market.
The break away from active strong losses in feeder cattle and lean hog trade seen Thursday is a welcome relief, but holiday and end of year market apathy seems to be the focus across the entire market.
March corn is down 2 1/4 at $4.72 and March soybean meal is down $4.20 at $386.5. The Dow Jones Industrial Average is down 120.25 at 37,589.85.
LIVE CATTLE:
Although the overall direction of the entire market is impacted very little due to the limited open interest in spot December contracts, the sharp triple-digit gains in December trade is the focus of the complex. Like said many times through the holiday season already, trade volume remains very light and activity levels sluggish. This has the opportunity for prices to wander in moderate to wide ranges without significant trades being done. Mixed price moves are holding in feeder cattle and lean hog contracts which may keep prices mixed within a narrow to moderate range through most of the session.
With Monday being New Year's Day, trade will remain silent until Tuesday morning as traders prepare to start the 2024 trading year, and likely bring about renewed overall volume and interest.
Cash cattle trade remains undeveloped Friday morning following light trade in most areas Thursday afternoon. Bids have redeveloped at $172 per cwt live basis and $273 dressed basis, although current asking prices are at least $1 per cwt higher than current bids at this point. Trade Thursday developed at $172 live basis, which is $1 higher than last week's average. Dressed trade at $272 to $273 per cwt id generally $2 to $3 per cwt higher than last week's average.
December live cattle are $2.48 higher at $173.675, February live cattle are $0.10 lower at $168.825, April live cattle are $0.15 higher at $172.425.
Boxed beef prices are mixed: choice down $2.41 ($288.87) and select up $1.20 ($260.44) with a movement of 49.96 loads (32.81 loads of choice, 5.05 loads of select, 4.11 loads of trim and 7.99 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are mixed in very limited trade volume with nearby contracts holding light to moderate losses, while increased price levels are seen in late 2024 contract months. The recent market shifts in the complex are partially based on very light volume and this lack of overall market activity in the market is expected to continue until early next week.
January feeders are $0.18 lower at $222.3, March feeders are $0.13 higher at $223.25 and April feeders are $0.23 higher at $229.15.
LEAN HOGS:
Lean hog futures are stuck in a narrowly mixed trading range midday Friday with little to no direction seen across the entire complex. The focus on the long upcoming holiday weekend and previous market pressure in the complex is keeping traders on the sidelines at the end of the week.
February lean hogs are $0.15 lower at $68.3, April lean hogs are $0.03 higher at $75.025 and May lean hogs are $0.03 higher at $81.45. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 189.89 loads with 174.09 loads of pork cuts and 15.80 loads of trim. Pork cutout values are down $0.44 at $81.28.
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