GENERAL COMMENTS:
Old man winter continues to cast snow and frigid temperatures across the U.S., but that isn't hindering the livestock contracts. Heading into the afternoon, the live cattle, feeder cattle and lean hog futures are all higher with ample support. But the market that needs the most support before the afternoon's close is the cash cattle market as its trade is still minimal for the week. March corn is down 2 1/4 cents per bushel and March soybean meal is down $2.60. The Dow Jones Industrial Average is down 14.94 points and NASDAQ is up 22.44 points.
LIVE CATTLE:
It's been a touch-and-go week for the live cattle contracts, especially the spot February futures. In the middle of the week there were some deliveries made against the February contract, which obviously sent the contract lower and worried cash sellers about this week's cash cattle outcome. As the week played on, the nearby live cattle contracts jumped to gains well over $1.00 stronger, but the entire complex is trading higher. February live cattle are up $1.75 at $117.07, April live cattle are up $1.45 at $124.57 and June live cattle are up $1.45 at $120.97. If the live cattle contracts can keep these gains through closing, next week is going to feel the market's pressure as traders wonder how much upside is left in the short term. Friday's cash cattle trade continues to be a stand-off between packers and feedlots. Feedlots are playing their cards wisely as they know packers need cattle and with the Dodge City plant back in production next week more cattle will be needed to help meet demand. Thus far bids of $180 to $182 have surfaced in Nebraska, but that's all the day has offered so far. More trade will need to develop before day's end.
Boxed beef prices are mixed: choice up $0.19 ($233.15) and select down $0.19 ($220.10) with a movement of 68 loads (27.62 loads of choice, 5.01 loads of select, 8.15 loads of trim and 27.17 loads of ground beef).
FEEDER CATTLE:
Friday morning the corn contracts are trading slightly lower, which is thankfully extending an opportunity to the feeder cattle contracts to trade higher. Externally the support that's flowing throughout the live cattle contracts is also helping amply the confidence throughout the feeder cattle market and could very easily carry through Friday's close, especially if Friday's cash cattle trade ends up gaining $1.00. March feeders are up $1.65 at $140.80, April feeders are up $1.45 at $144.82 and May feeders are up $0.70 at $146.15.
LEAN HOGS:
It's been an exceptional week for the lean hog contracts as the board continues to see ample support from traders, pork cutout values have been continuously supported and during the middle of the week packers pushed the cash market significantly higher. With the February lean hog contract expiring Friday, the nearby contracts of April and June are seeing plenty of interest. April lean hogs are up $1.52 at $85.77, June lean hogs are up $0.95 at $91.85 and July lean hogs are up $0.82 at $91.97.
The projected lean hog index for 2/11/2021 is up $0.79 at $73.15, and the actual index for 2/10/2021 is up $0.62 at $72.36. Hog prices are lower on the National Direct Morning Hog Report, down $1.82 with a weighted average of $63.18, ranging from $55.00 to $65.00 on 3,810 head and a five-day rolling average of $62.78. Pork cutouts total 178.88 load with 149.08 loads of pork cuts and 29.80 loads of trim. Pork cutout values: up $0.19, $89.06.
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