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

Live cattle futures posted strong gains ahead of cash trade and Friday's modestly bearish on feed report.  Cash did end up stronger for the week, in spite of the higher than expected December placement number of 99%. The $135 cash trade should support the front two months, while higher than expected placements could weigh on the June and August contracts. We would use any additional strength in the deferred contracts as a hedging opportunity. Cold storage numbers were moderately supportive in our opinion.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: 20-50 Lower

eeder cattle futures gapped higher in the March contract on Friday, closing up 3.67 for the day and 7.62 for the week. The 99% placement number, along with continued new lows for the move in the cash index could keep feeders from following the fats higher on Mondays' opening. Corn prices were up 7 cents for the week but are slightly lower overnight. We do expect some higher cash trade on Friday to surface in the cash index today.

Bret Crotts
Schwieterman Marketing, LLC