GENERAL COMMENTS:
The livestock complex closed mixed, with the cattle contracts dipping lower while the hog contracts closed higher in anticipation of the afternoon's Quarterly Hogs and Pigs Report. Some light cash cattle trade developed in the South at $229 and some Northern dressed cattle traded at $356 to $357. March corn is up 1/2 cent per bushel and March soybean meal is up $2.30. The Dow Jones Industrial Average is up 79.73 points and the NASDAQ is up 133.01 points.
LIVE CATTLE:
The live cattle complex closed lower as traders once again opted to pull the contracts lower and move away from the market's resistance at its 100-day moving average. February live cattle closed $1.42 lower at $230.00, April live cattle closed $1.05 lower at $230.02 and June live cattle closed $0.82 lower at $224.12. Some light cash cattle trade developed throughout the day as Southern live cattle were marked at $229, which is $2.00 higher than last week's weighted average. However, Northern dressed cattle were marked at $356 to $357, which is steady to $1.00 lower than last week's weighted average. And while it may seem odd that this week's trend is inverse to last week's trend (with Southern live cattle trading higher and Northern dressed cattle trading lower), it makes sense that, because packers bought oppositely last week, they need more cattle in the South and don't need quite as many in the North this week.
Tuesday's slaughter is estimated at 123,000 head, 2,000 head more than a week ago but incomparable to a year ago.
Boxed beef prices closed lower: choice down $7.10 ($355.77) and select down $1.10 ($349.59) with a movement of 138 loads (107.91 loads of choice, 10.09 loads of select, 8.94 loads of trim and 11.30 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady with the week's trend. Some more light trade could develop throughout the week, but the week's price trend is likely set.
FEEDER CATTLE:
To no one's real surprise, the feeder cattle complex also closed lower, following in the direction of the live cattle market. January feeders closed $1.87 lower at $344.62, March feeders closed $1.50 lower at $339.00 and April feeders closed $1.32 lower at $337.67. It is worth noting, however, that the spot March contract was able to maintain its position above the market's 100-day moving average, which is a victory in and of itself. The CME feeder cattle index 12/22/2024: up $1.17, $353.08.
LEAN HOGS:
The lean hog complex rallied through Tuesday's close, anticipating what the afternoon's Quarterly Hogs and Pigs report was going to unveil. Unfortunately, traders will likely trade the market in a bearish manner on Wednesday, as the report had one overarching conclusion: that there are more hogs than what was assumed in the September report. The surplus of supply could be viewed as a blessing when beef prices are high, but for hog producers, it could also be viewed as a reason why prices may potentially drift lower in the months ahead if there's an overabundance of supply. February lean hogs closed $0.62 higher at $85.97, April lean hogs closed $0.40 higher at $90.27 and June lean hogs closed $0.40 higher at $102.75. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.27 with a weighted average price of $69.43 on 1,620 head. Pork cutouts totaled 318.78 loads with 279.12 loads of pork cuts and 39.66 loads of trim. Pork cutout values: down $1.72, $96.69. Tuesday's slaughter is estimated at 492,000 head, 3,000 head more than a week ago but incomparable to a year ago. The CME lean hog index 12/19/2025: down $0.02, $83.71.
WEDNESDAY'S HOG CALL: Lower. With it being a holiday-shortened week, it's unlikely that packers will buy aggressively in this week's market.
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