Calm Report Day Expected

The December crop report is commonly the calmest report of the 12 we see in a given year which is

expected again today. The largest report of all 12 is the January report which is more likely where we

will see changes to both supply and demand.

Cattle – BB lower again, cash trade still $3 lower, feeder index lower, cattle weights higher

↓ Yesterday’s PM BB was choice -0.72 select -1.07 packer BE at 174.32, packer cushion $0.00

↓ BB continues lower and continues the #1 guide for this market

↔ Cash trades are mostly $3 lower this week, futures have a $12 discount pre factored in

↓ Feeder index was -1.07 yesterday continuing that trend lower

↓ Cattle weights were higher making the 2nd week in a row they moved beyond seasonal expectations

↓ Beef exports were disappointing yesterday, not nearly as much of a factor as those listed above but

another factor to pile on the bearish side

↔ Let’s not try to guess a low in this market, let’s allow BB to show us when the low will be, once BB

recovers for 3 days we can start to suggest a low might be in