DTN Midday Livestock Comments          12/09 12:12

   Lower Prices Take Over Monday 

   Monday has worked its depressing magic on livestock contracts as all three 
contracts trade lower despite a strong cash cattle prices ending last week. 

By ShayLe Stewart
DTN Livestock Analyst

General Comments

   Oh, Monday, the trivial tricks you play are never good. Early Monday 
morning, live cattle contracts were higher, feeder cattle contracts were mixed 
and lean hog contracts were down significantly. But as the clock ticks closer 
and closer to the noon hour, all contracts have begun to trade in the red. 
March corn is down 1/4 cent per bushel and January soybean meal is up $0.50. 
The Dow Jones Industrial Average is down 71.37 points and the NASDAQ is down 
6.35 points. 

   LIVE CATTLE 

   An astronomical cattle harvest, a higher Friday futures close and a cash 
cattle rally can't seem to spark live cattle contracts Monday. Early in the 
day, contracts welcomed the idea but have dropped lower since then. December 
live cattle are up $0.10 at $120.30, February live cattle are down $0.25 at 
$124.72 and April live cattle are down $0.07 at $125.27. This week's showlists 
appear to be higher in Nebraska, Kansas and Colorado, but lower in Texas. 
According to Friday afternoon's mandatory reports, last week's trade volumes 
were as follows: Kansas 18,677 head, Nebraska 12,218 head, Texas and Colorado 
not available due to confidentially, and Iowa 15,867 head. 

   Boxed beef prices are lower: choice down $1.55 ($223.01) and select down 
$1.10 ($206.20) with a movement of 66 loads (33.70 loads of choice, 7.08 loads 
of select, zero loads of trim and 25.51 loads of ground beef). 

   FEEDER CATTLE 

   Feeder cattle markets opened lower despite Friday's stronger close. The 
January feeder cattle contracts is down $0.90 at $140.65, March feeders are 
down $0.35 at $141.32 and April feeders are down $0.47 at $143.30. Feeder 
cattle contracts will most likely continue to struggle as the feeder cattle 
index drops lower in reflection of weaker countryside prices. With only three 
more weeks left in December, feeder cattle contracts are ready for January's 
coming. 

   LEAN HOGS 

   Hog harvest rallied cattle slaughter with the same excitement -- topping the 
week at 2.79 million hogs processed last week. But even with an exponential 
harvest, lean hog contracts still lack overall support while entering into the 
complex Monday morning. December lean hogs are down $1.00 at $60.12, February 
lean hogs are down $1.07 at $66.50 and April lean hogs are down $0.87 at 
$72.82. 

   The project lean hog index for 12/05/19 is up $0.15 at $58.49, and the 
actual index for 12/04/19 came in at $58.34, up $0.12. Hog prices on the 
National Direct Morning Hog Report are unavailable at this time due to packer 
submission problems. Pork cutouts total 132.84 loads with 120.55 loads of pork 
cuts and 12.30 loads of trim. Pork cutout values are up $0.93 at $83.01. 

   ShayLe Stewart can be reached shayle.stewart@dtn.com 


(AG)

Copyright 2019 DTN/The Progressive Farmer. All rights reserved.