GENERAL COMMENTS:
The livestock complex rounded out the day mixed as the feeder cattle complex was the only market to close fully higher, while both the live cattle and lean hog markets closed mostly lower. No trade surfaced in the cash cattle market. March corn is down 1 1/2 cents per bushel and January soybean meal is up $0.30. The Dow Jones Industrial Average is down 267.58 points.
LIVE CATTLE:
It was another mixed day for the live cattle complex as the market saw its nearby contracts close slightly lower but most of the market's deferred contracts closed slightly higher. As traders continue to hold the live cattle contracts somewhat steady -- all eyes, ears and emotions seem to be waiting on this week's cash cattle market to see if prices are again going to trade higher. If they do, traders may be more inclined to hold the market in its new sideways trading range and fundamental support is evident, but if cash prices dip lower, the big gains the futures market made last week could be quickly erased. December live cattle closed $0.22 higher at $192.25, February live cattle closed $0.22 lower at $189.75 and April live cattle closed $0.17 lower at $191.57. No cash cattle trade was noted throughout the day but asking prices are noted in the South at $193 to $195 but are still not established in the North.
Tuesday's slaughter is estimated at 123,000 head -- 3,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed lower: choice down $1.74 ($315.63) and select down $1.07 ($288.50) with a movement of 112 loads (62.88 loads of choice, 21.62 loads of select, 6.46 loads of trim and 20.92 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat higher. Even though last week's advancement in the cash cattle market was lofty -- as trade was noted anywhere from steady to $8.00 higher -- I believe that in the worst-case scenario, prices trade steady as feedlot managers are current enough with their showlists to be able to roll cattle over into next week as opposed to having to sell them this week for cheaper money.
FEEDER CATTLE:
Even without the support of the live cattle complex as it rounded out the day lower in its nearby contracts, the feeder cattle complex had a change of heart compared to Monday's market and closed anywhere from $1.00 to $2.00 higher. January feeders closed $1.92 higher at $257.47, March feeders closed $1.90 higher at $258.27 and April feeders closed $1.95 higher at $259.37. The market continues to dance just below its technical resistance at $260 -- which has been a threshold that the market has struggled to confidently conquer since early last spring. I don't believe that the feeder cattle complex will have the willpower to muster up enough strength to successfully take on the market's resistance there until the stars perfectly align – meaning that traders are eagerly pushing both the live cattle and feeder cattle contracts, and both the fed cash cattle and feeder cattle markets are trading higher as well. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers traded $5.00 to $10.00 higher, but the market for cattle weighing over 800 pounds wasn't fully established. Feeder heifers were fully steady with last week's market. Steer calves traded $8.00 to $13.00 higher and heifer calves sold steady. Feeder cattle supply over 600 pounds was 40%. The CME feeder cattle index 12/16/2024: up $0.81, $262.54.
LEAN HOGS:
The lean hog complex endured yet another lower trading day as the market continues to lack the fundamental support it desperately longs for. February lean hogs closed $0.35 lower at $83.20, April lean hogs closed $0.20 lower at $88.05 and June lean hogs closed $0.07 lower at $99.95. Unfortunately, the spot February contract did close below the market's support plane, which was established just last week, which indicates that more technical pressure could lay ahead of the market in the upcoming trading days if fundamental support doesn't surface. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.60 with a weighed average price of $77.79 on 1,075 head. Pork cutouts totaled 301.16 loads with 244.69 loads of pork cuts and 56.47 loads of trim. Pork cutout values: down $0.50, $94.77. Tuesday's slaughter is estimated at 488,000 head -- steady with a week and a year ago. The CME lean hog index 12/13/2024: down $0.06, $83.84.
WEDNESDAY'S HOG CALL: Steady. Packers don't seem as though they're in need of many hogs this week which could keep cash prices steady.
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