DTN Midday Livestock Comments

Sharp Gains Sweep Through Cattle Trade Tuesday

Rick Kment
By  Rick Kment , DTN Analyst
(DTN photo by Russ Quinn)
GENERAL COMMENTS:

Gains have quickly developed across the complex with cattle markets leading the market higher as triple-digit moves quickly seen through the entire cattle complex. This support is seen as overall trade activity remains light to moderate through the entire complex while buyers are expected to focus on sluggish activity through most of the week. Corn prices are steady in light trade. March corn futures are steady. Stock markets are lower in light trade. The Dow Jones is 22 points lower while Nasdaq is down 26 points.

LIVE CATTLE:

Strong gains have quickly moved into the with triple-digit gains seen in nearby contracts. This pushed December contracts above the $120 per cwt once again although trade volume in all markets remains sluggish Tuesday. There may be some additional buyer support moving into the market over the near future as traders continue to focus on activity between the Christmas and New Year's holidays. Cash cattle interest remains quiet through most of the morning with traders focusing on show list distribution between the holidays. With overall markets sluggish through entire week with Christmas in the rear view mirror and New Year's fast approaching, it is expected that trade will not develop until midweek or later. Asking prices may not even be readily available until late Wednesday. Beef cut-outs at midday are higher, $3.15 higher (select) and up $3.07 per cwt (choice) with light movement of 40 total loads reported (24 loads of choice cuts, 7 loads of select cuts, no loads of trimmings, 8 loads of ground beef).

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

FEEDER CATTLE:

Triple-digit gains have redeveloped through the end of the morning with gains of $1.25 to $1.55 per cwt at midday. The overall support is expected to continue to develop through the trading session with January futures leading the market higher with a $1.72 per cwt gain. There is growing support as traders are starting to pull markets back from the recent pressure seen over the last couple of weeks. Trade volume is expected to remain sluggish through the rest of the session as limited trade activity is seen through the market.

LEAN HOGS:

Light gains have slowly trickled into lean hog futures trade early Tuesday morning with the focus on additional narrow market shifts possible over the next couple of days. Nearby contracts are holding gains of 5 to 17 cents per cwt in very sluggish trade activity while deferred futures are 2 to 20 cents per cwt lower in light activity. The support in nearby lean hog futures are driven more by the gains in cattle futures rather than any cash market activity. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.91 at $56.52 per cwt with the range from $53.00 to $57.20 on 6,291 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.88 at $56.12 per cwt with the range from $53.00 to $57.00 on 3,750 head reported sold. The National Pork Plant Report posted 108 loads selling with carcass values falling $0.04 per cwt. Lean hog index for 12/20 is at $62.00 down $0.38 with a projected two-day index of $61.76, down $0.24.

Rick Kment can be reached at rick.kment@dtn.com

(BE)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]

Rick Kment