Finally, cattle contracts are seeing a little bit of support and interest build as the midweek point arrived. Both live cattle contracts and feeder cattle contracts seem to be steadily progressing into the noon hour and could quite easily keep the gains through closing. March corn is up 2 3/4 cents per bushel and March soybean meal is up $0.40. The Dow Jones Industrial Average is up 203.96 points and NASDAQ is up 68.59 points.
LIVE CATTLE
It's a good day for the live cattle market as contracts cautiously trade higher but have been able to keep the morning's ambition and contracts seem confident in their current trading. February live cattle are up $0.15 at $119.22, April live cattle are up $0.47 at $117.65 and June live cattle are up $0.47 at $109.60. Most cumulative volume is trading in the April and June contracts. Some light trade has developed in parts of Texas and Kansas at $119, $2.00 lower than last week's weighted average. In other parts of the country bids are being renewed but are lower than current asking prices of $122 in the South and $194 in the North. It may seem contradicting that the board is trading higher when cash prices are trading lower but as we talked about yesterday, feeders are capitalizing on the basis right now and clearing space for more cattle.
The Fed Cattle Exchange Auction reported a total of 413 head, consisting of 4 lots (two lots in Kansas, and one lot each in Texas and Nebraska). Asking prices were $119 on all lots. Both lots in Kansas sold at $119, and the Texas lot also sold at $119, these were all set for 1-to-9 day delivery. The Nebraska lot did not sell.
Boxed beef prices are mixed: choice down $1.15 ($206.68) and select up $0.85 ($205.38) with a movement of 88 loads (62.65 loads of choice, 9.86 loads of select, zero loads of trim and 15.22 loads of ground beef).
FEEDER CATTLE
The feeder cattle market is responding well to Wednesday's midweek market as nearby contracts gain moderately and some deferred contracts rally over $1.00 gains. March feeders are up $0.32 at $135.00, April feeders are up $0.50 at $137.22 and May feeders are up $0.50 at $138.97. The feeder cattle market seems to be breaking the way for live cattle contracts to follow despite cash trade developing for lower money yet again.
LEAN HOGS
The lean hog complex is split going into the noon hour as deferred contracts are mildly higher and nearby contracts are weaker. April lean hogs are down $0.52 at $63.72, May lean hogs are down $0.77 at $73.02 and June lean hogs are down $0.10 at $80.87. Seeing that the cattle contracts are pulling the support and trader interest for the time being, with morning cash hog prices being lower it wouldn't be unlikely to see the lean hog market's prices fade in the afternoon.
The projected lean hog index for 2/11/2020 is down $0.61 at $57.32 and the actual index for 2/10/2020 is down $0.53 at $57.93. Hog prices are lower on the National Direct Morning Hog Report, down $1.91 with a weighted average of $47.96 ranging from $42.00 to $51.64 on 5,410 head sold and five-day rolling average of $50.27. Pork cutouts total 167.59 loads with 147.96 loads of pork cuts and 19.63 loads of trim. Pork cutout values are steady at $63.65.
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