Live Cattle
Short Term: Up
Long Term: Down
Opening Calls: 20-40 Higher

Live cattle futures finally saw follow through buying, extending Monday's gains and closing above the 40 day moving average. The February contract has now recovered 10.00 off of last Thursdays' contract lows. The continued strength in the afternoon trade suggests some higher openings this morning. Equity markets continue to recover as well and some cash trade on Tuesday was reported as much as $6.00 higher than week ago levels. Southern trade as higher as $124 is a long ways from what cattle feeders need to see, but certainly a relief from the steady downward momentum. Beef prices were mostly steady to higher on Tuesday, with choice cuts leading the advance.

Feeder Cattle
Short Term: Up
Long Term: Down
Opening Call: 20-40 Higher

Feeder cattle futures closed sharply higher on the January board, with deferred contract seeing moderate to strong gains. Corn prices posted their second lowest close of the year, giving additional reason for the feeder recovery. Overnight corn prices are flat and cash feeder sales will remain thin into the 1st full week of January. Tuesday's close is above the 40 day moving average.

Bret Crotts
Schwieterman Marketing, LLC