It's a strong day for the livestock complex as the cattle contracts are anxious to rally after absorbing Monday's Cattle Inventory report. It's likely the cash cattle market trades higher this week as throughput is improving and feedlots saw the market's fundamentals favor their position in the inventory report. March corn is up 12 cents per bushel and March soybean meal is up $16.90. The Dow Jones Industrial Average is down 17.66 points and NASDAQ is down 7.87 points.
LIVE CATTLE:Live cattle futures are rallying after seeing Monday's bullish Cattle Inventory report. The market saw somewhat of a perfect storm throughout Monday's trade as 120,000 head were processed, the futures complex traded higher and the Cattle Inventory report was completely bullish. With that being on the forefront of the market's mind, higher is the beat of Tuesday's drum. February live cattle are up $1.27 at $140.85, April live cattle are up $1.40 at $145.92 and June live cattle are up $1.37 at $140.42. The cash cattle market has yet to see any trade and trade could wait until Wednesday or later to develop. Early asking prices have been noted at $139 to $140 in the South, but the North has yet to disclose their asking prices. With the market back up to full capacity in packing plants, it is likely cash cattle trade higher this week.
Boxed beef prices closed lower: choice down $3.99 ($286.41) and select down $1.76 ($281.51) with a movement of 67 loads (43.97 loads of choice, 10.34 loads of select, 5.42 loads trim and 7.56 loads of ground beef).
FEEDER CATTLE:Corn futures are back to trading fully higher and are coming close to trading at $6.40 per bushel in nearby contracts. But feeder cattle futures are fixated on fact that there will be fewer cattle to market this year and are continuing to trend upward. March feeders are up $0.62 at $163.65, April feeders are up $0.45 at $168.90 and May feeders are up $0.25 at $173.20. It wouldn't be unlikely to see excellent demand for calves in sale barns this week as the Cattle Inventory Report bodes in favor of feedlots and cow-calf producers. The heavier feeders (weighing 800 pounds or more) will likely continue to see steady to minimal interest as most of the market's opportunity lies in the later half of 2022 at this point.
LEAN HOGS:The lean hog complex is trending higher despite the market's fundamentals still needing to iron out some specifics for the short term. The cash market is slightly higher at midday, but the week's volume of cash hogs sold is extremely thin and midday pork cutout values are lower. February is posting modest gains while the April 2022 contract through August of 2022 all trend significantly higher. The further the market makes its way into 2022, the thinner supplies are expected to get, which is helping boost prices in the marketplace. February lean hogs are up $0.35 at $88.82, April lean hogs are up $3.22 at $98.95 and June lean hogs are up $3.00 at $108.50.
The projected CME Lean Hog Index for 1/28/2022 is up $1.54 at $82.15, and the actual index for 1/27/2022 is up $0.86 at $80.61. Hog prices are higher on the National Direct Morning Hog Report, up $0.31 with a weighted average of $67.00 ranging from $65.00 to $88.00 on 2,020 head and a five-day rolling average of $66.04. Pork cutouts total 168.99 loads with 150.88 loads of pork cuts and 18.11 loads of trim. Pork cutout values: down $0.79, $93.72.
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