GENERAL COMMENTS:
Triple-digit losses are seen in livestock trade midday Thursday morning, although the challenging part of the market moves is that nothing has really changed either fundamentally or technically. Once again, very limited activity in all markets during the holiday week, and what trade did show up this week is more focused on the movements in the stock market which is at or near record highs, leaving little attention to livestock trade. Even cash and meat market movement have very little impact on the direction of futures trade going into the end of the year.
March corn is down 2 at $4.745 and March soybean meal is down $3.30 at $390.5. The Dow Jones Industrial Average is up 54.64 at 37,711.16.
LIVE CATTLE:
Live cattle futures have followed the rest of the complex lower Thursday, although very limited volume at the end of the holiday week is creating more challenges for price levels, as the lack of activity breaks away from the typical normal reason seen in the market as fundamental and technical trade activity take a back seat to a very thinly traded market that can be moved in either direction with very little momentum. Thursday's direction has been lower, and although the potential to adjust positions before the end of the trading day remains, it is becoming more likely that traders will be relatively uninterested in stepping back into the complex over the next couple of hours. Limited trade activity is expected until early next week, when markets reopen after the New Year's break.
Cash cattle activity remains quiet with midweek bids of $270 live basis redeveloping, but still not getting any attention. Asking prices are more available through the morning at $175 and higher live basis in the South and $275 and higher in the North. It is becoming more likely that active trade could be delayed until sometime Friday.
December live cattle are $0.35 lower at $170.375, February live cattle are $0.95 lower at $168.325, April live cattle are $1.18 lower at $171.80.
Boxed beef prices are lower: choice down $4.85 ($286.63) and select down $0.64 ($259.68) with a movement of 70.34 loads (42.03 loads of choice, 13.02 loads of select, 5.35 loads of trim and 9.94 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are leading the market lower as traders have backed away from midweek gains and posting strong morning losses in all contracts. Triple-digit pressure is seen in all contract months at midday, although prices have slowly backed away from session lows of over $2 per cwt, but the tone of the market remains weak with this price pressure likely to hold through the end of the session.
Limited volume is seen across the complex, allowing for markets to move in a more volatile and wide trading range, with little to no fundamental indications at this point. The few trades who are in the market during the holiday week seem more focused on stock prices, which are at or near record highs in most indexes at the end of the year.
January feeders are $1.75 lower at $222.725, March feeders are $1.90 lower at $223.5 and April feeders are $1.80 lower at $229.10.
LEAN HOGS:
Lean hog futures have posted additional losses, following the direction of the rest of the livestock market and most commodity trade Thursday. As mentioned before, the very limited trade volume and light activity during the whole holiday week is adding volatility to the hog complex, and limiting buyer support not only Thursday, but likely through the end of the week.
February lean hogs are $1.73 lower at $68.15, April lean hogs are $1.25 lower at $74.675 and May lean hogs are $1.00 lower at $81.60. Hog Prices are higher on the Daily Direct Morning Hog report, up $1.74 with a weighted average of $47.93, ranging from $47.00 to $48.00 on 1,470 head with a five-day rolling average of $46.62. Pork Cutouts totaled 148.77 loads with 131.71 loads of pork cuts and 17.06 loads of trim. Pork cutout values are down $0.15 at $81.72.
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