GENERAL COMMENTS:
The cattle complex is eager to welcome in the New Year and ran aggressively through all of Tuesday's trade. Still no cash cattle trade has developed but packer demand should be strong on Thursday when the market resumes. March corn is up 6 1/4 cents per bushel and March soybean meal is up $5.10. The Dow Jones Industrial Average is down 29.51 points.
**The markets will be closed on Wednesday, Jan. 1 for the New Year holiday. Regular DTN market commentary will resume on Thursday, Jan. 2.**
LIVE CATTLE:
The live cattle complex closed higher yet again as the market continues to grind higher and higher as traders seem thoroughly convinced that the market's strong fundamental outlook will again be prosperous in 2025. February live cattle closed $1.30 higher at $191.60, April live cattle closed $1.25 higher at $194.27 and June live cattle closed $0.85 higher at $189.62. Today's momentum stemmed from the understanding of the market's fundamental position, as today's boxed beef prices didn't lend any support and there's still been no cash cattle trade to speak of. Asking prices are noted in the South at $195 plus but are still not established in the North. Packer demand will likely surface bright and early on Thursday as packers haven't been able to get many cattle bought over the last two weeks.
Tuesday's slaughter is estimated at 102,000 head -- incomparable to last week but 19,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.15 ($324.22) and select down $0.24 ($294.52) with a movement of 119 loads (64.63 loads of choice, 33.48 loads of select, 7.24 loads of trim and 13.45 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. Given that over the course of the last two weeks packers haven't been able to buy more than 50,000 head on either week likely means that they're short bought and will need to be somewhat aggressive in this week's trade.
FEEDER CATTLE:
The feeder cattle complex powered through the day as traders continue to aggressively support the market as they see the market's strong long-term bullishness. January feeders closed $1.40 higher at $263.02, March feeders closed $1.92 higher at $262.97 and April feeders closed $2.27 higher at $263.55. Some sale barns will resume their weekly sales later this week, and given that most auction barns have been closed for the last two weeks, demand is expected to be strong. The CME feeder cattle index 12/30/2024: up $7.08, $261.05.
LEAN HOGS:
The lean hog complex endured another stressful day as the market kept with its downward ascend, and felt additional pressure as pork cutout values dove $4.00 lower. February lean hogs closed $0.32 lower at $81.30, April lean hogs closed $0.47 lower at $86.57 and June lean hogs closed $0.52 lower at $99.17. It was interesting to see that several of the cuts posted significant price drops as the picnic plummeted $9.13, the ham fell $5.66 and the loin fell $3.23. The market is desperately longing to see better consumer support which has been an issue as of late. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.27 with a weighed average price of $80.08 on 6,180 head. Pork cutouts totaled 408.44 loads with 363.48 loads of pork cuts and 44.97 loads of trim. Pork cutout values: down $4.02, $90.30. Tuesday's slaughter is estimated at 411,000 head -- incomparable to last week but 73,000 head less than a year ago. The CME lean hog index 12/27/2024: down $0.50, $84.35.
THURSDAY'S HOG CALL: Lower. Given that packers bought just over 6,000 head today in the cash market it's likely that they're essentially done buying for the week.
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