GENERAL COMMENTS: Strong losses in lean hog futures Thursday put bearish pressure on the entire complex. Live cattle trade remained mixed in limited volume despite strong gains in feeder cattle futures. Cash market direction was limited even though a few cattle were sold in Iowa at $195 to $196 per cwt. At this point, Thursday's trade is not enough to establish a trend. However, bids have been seen in the $195- to $196-per-cwt range dressed and $122 live. Packer interest is expected to improve on Friday. Asking prices are holding at $126 and higher live and $200 dressed. According to the closing report, the national hog base is $0.68 lower ($47-$53, weighted average $51.58). Corn futures are mixed in light activity. March futures were 1/4 cent lower. Dow Jones Index is 171 points higher with Nasdaq up 5 points.
LIVE CATTLE: The live cattle market stabilized Thursday with futures closing mixed, $0.20 lower to $0.35 higher. Nearby contracts trickled lower following widespread losses in hog trade as well as outside market pressure that may affect short-term movement of beef products. Deferred futures were heavily influenced by renewed support moving into feeder cattle trade. More late-week support could surface Friday. Beef cut-outs: higher, up $0.10 (select, $212.14) to up $0.54 (choice, $217.75) with light demand and moderate offerings on a total of 124 loads (74 loads of choice cuts, 16 loads of select cuts, 12 load of trimmings, 22 loads of coarse grinds).
FRIDAY'S CASH CATTLE CALL: Steady. Both sides seem resigned to another late-Friday trade schedule. Bids are expected to redevelop near $122 live and $196 dressed, but packer interest should improve through the morning. Asking prices will likely remain firm during most of the day.
FEEDER CATTLE: Feeder cattle futures were $0.15 to $0.75 higher on increased buyer activity. Feeder cattle futures, which have been severely beaten down during the first three weeks of 2019, have regained some life with prices rallying over $3 per cwt as traders try to focus on longer-term support and continued firmness in the live cattle trade. CME cash feeder index for 1/23 is $142.24, up $0.66.
LEAN HOGS: Lean hog futures were $0.40 to $1.35 lower as market pressure continued the last half of the week. Futures have broken through both short- and long-term support levels the last two trading sessions. Even though cash values seem to have held up generally well through January, concerns about pork demand have led to increased liquidation through the complex. Pork values have continued to erode with losses in all primal cuts except ribs. Pork cutout values fell $1.43 per cwt, moving to $67.27 per cwt, on 343 loads. CME cash lean index for 1/22 is $58.58, up $0.25. DTN Projected lean index for 1/23: $58.50, down $0.08.
FRIDAY'S CASH HOG CALL: Steady to $1 lower. Firm pressure is expected to continue to trickle into cash hog values through the end of the week. Most bids are expected steady to 50 cents lower. Slaughter Friday is expected to hit 463,000 head, with a Saturday scheduled run of 212,000 head.
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