GENERAL COMMENTS:
Triple-digit gains continued to develop in cattle futures despite the sluggish start Monday morning. Gains over $4 per cwt were seen in nearby live cattle and feeder cattle trade, helping to solidify the upward shift that started Friday. There seems to be much less bearish technical momentum early this week, but prices remain dangerously close to support levels that additional follow-through buyer support will be needed through the week in order to instill confidence across the entire complex.
Hog futures remain weak with firm pressure in spot February contracts, while the rest of the complex closed mixed with limited activity. Hog prices closed lower on the Daily Direct Afternoon hog report, down $2.22 with a weighted average of $49.66 on 2,750 hogs.
March corn closed down 4 at $4.815 and January soybean meal closed up $8.50 at $413.2. The Dow Jones Industrial Average is up 157.06 at 36,404.93.
LIVE CATTLE:
Live cattle futures held gains most of the session Monday, although the turnaround in feeder cattle futures late in the trading day helped to spark additional buyer support and create significant gains in all contracts. February and April futures led the market higher with gains over $2 per cwt with the focus on renewed buyer support possible as the week continues. The move over recent support levels is limiting the fear of further aggressive losses in the complex and helping to spark additional underlying price gains.
Cash cattle markets are quiet with asking prices and bids undefined. Showlists are mixed, higher in Texas while lower in Kansas, Nebraska and Colorado. It may be midweek or later before this week's trade starts to develop.
December live cattle closed $1.53 higher at $166.975, February live cattle closed $2.18 higher at $167.9 and April live cattle closed $2.20 higher at $171.5.
Monday's slaughter is estimated at 126,000 head, 1,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed higher: choice up $2.42 ($290.43) and select up $1.64 ($259.54) with a movement of 133.51 loads (70.67 loads of choice, 30.44 loads of select, 23.07 loads of trim and 9.33 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Activity is expected to remain sluggish Tuesday morning, pushing most activity until the last half of the week.
FEEDER CATTLE:
Strong late-day gains in all feeder cattle futures quickly shifted the market tone away from early morning losses. Triple-digit price rallies were seen in all nearby contracts, helping to support the buyer interest seen Friday. Continued price moves higher through the week will go a long way in helping bring additional interest back into the complex over the next few days.
January feeders closed $2.65 higher at $217.95, March feeders closed $2.53 higher at $218.6 and April feeders closed $2.80 higher at $222.00. The CME Feeder Cattle Index for Dec. 7: down $1.67, $218.37.
LEAN HOGS:
Firm pressure in actively traded February lean hog futures led the lean hog future complex lower through most of the session. Although narrow gains developed in deferred contracts, the weaker tone of the lean hog complex continues to focus on lack of optimism of fundamental support through the first half of 2024. Prices remain well rooted in the sideways market trend, but the inability to steadily push prices higher could limit market growth in the near future. December lean hogs closed $0.18 lower at $68.25,
February lean hogs closed $1.65 lower at $67.325 and April lean hogs closed $0.80 lower at $75.35. Monday's hog slaughter is estimated at 462,000 head, 21,000 head less than a week ago and 23,000 head less than a year ago. Pork Cutouts totaled 301.73 loads with 275.21 loads of pork cuts and 26.52 loads of trim. Pork cutout values are up $0.95 at $86.62. The CME Lean Hog Index for Dec. 7: down $0.36, $68.76.
TUESDAY'S HOG CALL: Steady. Limited support in cash hogs Monday and softness in futures prices may limit firm gains Tuesday, although the support in pork values could help stabilize markets through the week.
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