It was an exceptional week for the live cattle market as the cash trade jumped higher and the futures supported that move. Meanwhile, the lean hog market rallied on limited supplies and robust demand, which is likely to continue in the months ahead. Hog prices closed lower on the National Direct Afternoon Hog Report, down $3.62 with a weighted average of $83.87 on 2,267 head. March corn is up 3 3/4 cents per bushel and March soybean meal is up $6.80. The Dow Jones Industrial Average is down 21.42 points and NASDAQ is up 219.19 points.
From Friday to Friday livestock futures scored the following changes:
February live cattle up $3.35, April live cattle up $3.78; March feeder cattle up $6.47, April feeder cattle up $6.13; February lean hogs down $0.90, April lean hogs up $5.15.
LIVE CATTLE:Live cattle futures rounded out the day fully higher, championing the week with significant gains both technically and fundamentally. February live cattle closed $0.45 higher at $142.05, April live cattle closed $0.12 higher at $146.87 and June live cattle closed $0.15 lower at $141.37. The market rallied into the week's end as feedlots regained some market positioning as the cash cattle market traded higher. This week's production bobbled a little with the snowstorm hindering efficiency, but next week feedlots hope processing speeds run at full capacity as the market now needs front-end supplies to regain currentness. This week Southern live trade was at mostly $140, $3 to $4 higher than last week's weighted averages. Northern dressed trade was at mostly $222, $4 higher than last week's weighted averages basis Nebraska.
Friday's slaughter is estimated at 114,000 head -- 3,000 head less than a week ago and steady with a year ago. Saturday's slaughter is projected to be around 46,000 head -- 11,000 head less than a week ago and 23,000 head less than a year ago. This week's slaughter is estimated at 639,000 head -- 4,000 head less than a week ago and 13,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.65 ($279.81) and select down $0.42 ($276.05) with a movement of 87 loads (65.58 loads of choice, 5.41 loads of select, zero loads of trim and 16.12 loads of ground beef). Throughout the week choice cuts averaged 284.05 (down $6.92 from last week) and select cuts averaged $279.11 (down $2.95 from las week) and the week's total movement of cuts, grinds and trim totaled 565 loads.
MONDAY'S CASH CATTLE CALL: $1.00 to $2.00 higher. Feedlots know that packers have some cattle committed with time, but by and large they know supplies favor their position and packers will need to pull on the cash market to keep production elevated.
FEEDER CATTLE:The snowstorm that moved across the Midwest and parts of the south hindered feeder cattle sales late this week. From a technical sense, the feeder cattle futures fought some pressure as corn traded higher throughout Friday's close. Overall, it was a strong week for the feeder cattle market and buyers are still hopeful for the opportunity that lays ahead, but monitoring input prices will continue to be the gamble. March feeders closed $0.62 lower at $166.10, April feeders closed $0.37 lower at $171.42 and May feeders closed $0.27 lower at $175.35. At Lexington Livestock Market in Lexington, Nebraska, compared to last week, on a run of 2,247 head, steers weighing 600 to 750 pounds sold steady to $2.00 higher and steers over 750 pounds traded steady to $7.00 higher. Heifers weighing 600 to 800 pounds traded $2.00 to $5.00 higher. The CME Feeder Cattle Index for 2/3/2022: up $0.92, $160.17.
LEAN HOGS:It took some guts, but the April lean hog contract stuck its neck out and closed slightly above $100.00. Sure, the cash market may be lower, and slaughter lagged a little this week, but with the snowstorm affecting production, one can only expect those type of market reactions. Excellent demand both domestically and internationally continues to spur bullish morale throughout the lean hog market. The February contract is set to expire in a short 10 days, at which point the nearby contracts of April 2022 through August 2022 all are trading above $100.00 as supplies of market-ready hogs are expected to be hard to come by. February lean hogs closed $0.57 higher at $87.02, April lean hogs closed $1.70 higher at $100.07 and June lean hogs closed $1.22 higher at $109.42. Pork cutouts totaled 200.95 loads with 170.46 loads of pork cuts and 30.49 loads of trim. Pork cutout values: up $0.20, $97.41. The CME Lean Hog Index 2/2/2022: up $0.04, $83.33.
MONDAY'S CASH HOG CALL: Higher. With the lull in production this week because of weather, I'd suspect that packers are eager to get back to full capacity next week.
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