Daily Market Outlook and Analysis

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Monday, Dec. 3, 2018

The cattle futures complex failed to sustain its early-session rally as live cattle settled $0.05 to $0.70/cwt. lower with the June contract falling the furthest. Feeder cattle futures closed down $0.72 to $1.57/cwt. led by the August contract. The CME feeder cattle index added $0.72 to settle at $147.92/cwt. Lean hog futures finished $1.20/cwt. lower in the May contract to $0.15/cwt. higher in the nearby December. The CME lean hog index trickled $0.14 lower to $56.42/cwt. Corn and soybeans gapped higher in response to the positive trade news over the weekend between the U.S. and China that stated there would be no increase in tariffs in the short-term. Corn closed 4-3/4 cents higher, and soybeans ended up 11-0 cents. KC wheat added 6-1/4 cents. Cash fed cattle prices were $1 to $2 higher last week at $117.55/cwt. The weekly composite cutout moved 8 cents lower last week to $211.79/cwt. The 90% lean trimmings market increased $1.29 last week to $193.74/cwt., the third week above the $190 support. The 50s market averaged $67.14/cwt., decreasing $1.06 last week.

Futures Market Summary

Nearby Elec. Contract Close Change High Low
Live Cattle $116.875 ($0.050) $117.750 $116.750
Feeder Cattle $144.500 ($0.725) $146.300 $144.300
Lean Hogs $58.025 $0.150 $58.875 $57.125
Class III Milk $14.46 $0.00 $14.47 $14.45
Corn $3.7125 $0.0475 $3.7400 $3.6950
Soybean $9.0575 $0.1100 $9.2375 $9.0450

USDA Beef Complex

Item Price Change
Choice $213.08 $0.47
Select $199.18 $0.77
Drop Credit $9.06 $0.00

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