GENERAL COMMENTS:
The livestock complex is mixed as the cattle contracts continue to rally, believing the week's cash cattle trade will be higher and lend support, but the lean hog complex continues to trek downward. Asking prices are noted in the South at $195-plus. March corn is up 4 cents per bushel and March soybean meal is up $1.20. The Dow Jones Industrial Average is down 104.26 points
LIVE CATTLE:
The live cattle complex is continuing to rally modestly as the market believes positive trade could be in store again for this week's cash cattle market. And while boxed beef prices are slightly lower on the midday report, traders seem committed at this point to continuing to advance the complex. February live cattle are up $0.82 at $191.12, April live cattle are up $0.80 at $193.82, and June live cattle are up $0.67 at $189.45. No trade has developed in the cash cattle market and it's unlikely any will ahead of the New Year's Day break, when the markets will all be closed. Packer interest will likely begin to surface Thursday. Asking prices in the South are noted at $195-plus but are not established in the North.
Boxed beef prices are lower: choice down $0.51 ($324.86) and select down $0.48 ($294.28) with a movement of 59 loads (31.87 loads of choice, 18.53 loads of select, zero loads of trim and 8.58 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is continuing to rally aggressively into Tuesday's noon hour as traders seem confident in the market's long-term bullishness. It was exhilarating to see the contracts conquer the resistance threshold at $260 just last week; and here today the contracts seem confident in pushing into the $262 range. January feeders are up $1.35 at $262.97, March feeders are up $1.57 at $262.62, and April feeders are up $1.65 at $262.92.
LEAN HOGS:
As if Monday's sharp descent wasn't enough, the lean hog complex is continuing to drift lower through Tuesday's trade. February lean hogs are down $0.92 at $80.70, April lean hogs are down $0.60 at $86.45, and June lean hogs are down $0.50 at $99.20. The spot February contract has already surpassed the market's previous support at $82 and could begin to pressure the market's next support threshold at $80.00.
The projected CME Lean Hog Index for 12/30/2024 is down $0.08 at $84.27, and the actual index for 12/27/2024 is down $0.50 at $84.35. Hog prices average $79.59 on the Daily Direct Morning Hog Report, ranging from $74.00 to $81.00 on 2,365 head and a five-day rolling average of $79.27. Pork cutouts total 220.82 loads with 197.40 loads of pork cuts and 23.42 loads of trim. Pork cutout values: down $2.41, $91.91.
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