GENERAL COMMENTS:
After trading sharply lower through Monday's end, the cattle contracts were thankful for the opportunity to regain some of their lost footing in Tuesday's market. Asking prices are noted in the cash market at $192 to $194 in the South but are still not established in the North. March corn is down 1/4 cent per bushel and January soybean meal is up $2.50. The Dow Jones Industrial Average is down 76.47 points.
LIVE CATTLE:
The live cattle complex was relieved to see the feeder cattle market back to rallying as it wanted to again follow in its wake, as the old-time saying that "feeders are leaders" seems to be ringing true right now for the market. December live cattle closed $0.95 higher at $188.47, February live cattle closed $1.15 higher at $189.07 and April live cattle closed $1.02 higher at $191.15. The market is covering slightly below long-term resistance at $190, which was established earlier this summer. Still no trade has developed in the cash cattle market and it's likely that trade will be delayed until Thursday or Friday as feedlot managers are again eager to push cash prices higher. Asking prices are noted in the South at $192 to $194 but are still not noted in the North. Bids of $190 were offered throughout the day, but no cattle traded.
Tuesday's slaughter is estimated at 125,000 head -- 1,000 head less than a week and a year ago.
Boxed beef prices closed lower: choice down $3.68 ($309.33) and select down $1.67 ($275.33) with a movement of 155 loads (81.34 loads of choice, 29.18 loads of select, 15.61 loads of trim and 29.17 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat higher. Given that feedlots are current, I don't foresee feedlot managers being overly eager to trade cattle at cheaper prices.
FEEDER CATTLE:
The feeder cattle complex somewhat bounced back following Monday's lower ascend as traders either deemed one of two things -- either that enough short-term profiting taking had happened, or that there was simply too much fundamental support in the market to drive prices lower. Either way, cattlemen were pleased to see the contracts again trading higher throughout Tuesday's market, and given the continued climb in the CME feeder cattle index, I think today's direction was more suited to the market as a whole. January feeders closed $2.45 higher at $259.30, March feeders closed $1.72 higher at $257.27 and April feeders closed $1.15 higher at $258.12. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers traded $2.00 to $3.00 higher except those weighing 700 to 800 pounds which traded $5.00 to $10.00 higher. Steer and heifer calves sold $5.00 to $10.00 stronger with instances up to $15.00 higher. Feeder cattle supply over 600 pounds was 46%. The CME feeder cattle index 12/2/2024: up $2.25, $259.38.
LEAN HOGS:
Given the $14.59 decline in the belly which led to the carcass price's $3.05 drop, all in all, it's surprising that the lean hog contracts closed mixed as opposed to fully lower. December lean hogs closed $0.02 higher at $83.25, February lean hogs closed $0.10 lower at $87.85 and April lean hogs closed $0.15 lower at $92.32. If it weren't for the massive decline in the belly, it's likely that the afternoon carcass price would have been able to close steady to somewhat higher, but the wild price swings in the belly are appearing to be back again which could create hesitancy in the futures complex. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.92 with a weighted average price of $86.89 on 10,650 head. Pork cutouts totaled 320.89 loads with 287.01 loads of pork cuts and 33.88 loads of trim. Pork cutout values: down $3.05, 89.61. Tuesday's slaughter is estimated at 487,000 head -- 2,000 head less than a week ago and 1,000 head more than a year ago.
WEDNESDAY'S HOG CALL: Steady to somewhat lower. Today's volume was larger in the cash hog market but still likely that packers are going to need to accumulate more inventory this week. But with pork cutout values being pressured, they won't likely support the market too much to push the cash market higher.
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