DTN Midday Livestock Comments

General Comments

LIVE CATTLE:

December cattle continue to set a new contract high keeping the strong uptrend intact. Stronger cut-out yesterday seem to underpin price potential. Later contracts remain in a sideway pattern. The November Cattle on Feed Report did not gain much attention as many of the numbers were already anticipated. November cold storage of beef declined slightly from October, totaling 514.7 million pounds according to the USDA Cold Storage report released today. Boxed Beef cut-out value is $155.89, up $0.05 from yesterday. Cash cattle are looking at steady prices with business coming down to the wire again. Boxed Beef cutouts are higher with choice at $213.56, up $1.09 per cwt and select at $206.81, up $1.55 per cwt. Movement is light with 40 loads reported (24 loads of choice cuts, 10 loads of select cuts, 3 loads of trimmings, and 3 loads of ground beef.

FEEDER CATTLE:

Feeder futures show minor losses in lackluster trade. The feeder cattle index is $145.74, up $0.13 from yesterday. Much ground will need to be made up during the last week of trading to bring the index up to January futures. Futures are trying to regain losses and turn the trend higher.

LEAN HOGS:

Spreading the close month to deferred months is prevalent. February continues to struggle to find price support. Frozen pork in cold storage for November totaled 507.6 million pounds, down 63.3 million pounds from October. Cash prices are lower on the National Direct morning report. The weighted average price is $44.41, down $0.22 per cwt with a range of $41.00 to $45.145 per cwt. The National Pork Plant report posted 146 loads selling. With 128 loads cuts and 18 loads trim. Lean hog index for 12/19 is $54.65, down $0.35 with a projected two-day index of $53.87, down $0.78.

Robin Schmahl can be reached at: rschmahl@agdairy.com

(CZ)

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