GENERAL COMMENTS:
It's a good day to be a livestock enthusiast and the three contracts are all trading higher. The lean hog complex is gaining in confidence as support is seen from all angles. The live cattle complex is trading higher and praying feedlots can champion the week with higher cash cattle trade. Time will tell. March corn is up 7 cents per bushel and March soybean meal is up $9.70. The Dow Jones Industrial Average is down 215.41 points and NASDAQ is down 131.88 points.
LIVE CATTLE:
Waiting is the name of today's game and I tip my hat to feedlots as they dig their heels in and let time pass, knowing they'll have to play tough to get the prices they want. Asking prices are $143-plus in the South and $227 to $228 in the North. Packer interest hasn't been much as of yet, but it will likely get stronger as the day trades on. Helping feeders remain confident is the simple fact that it's a green day for the live cattle contracts as the entire futures market trades higher. February live cattle are up $1.00 at $143.90, April live cattle are up $0.72 at $147.60 and June live cattle are up $0.80 at $142.90. Bids of $142 have been passed up by some in Nebraska but some others are willing to take the offer, and some trade at $142 is beginning to develop in Kansas and Texas, which is $2.00 higher than last week's business.
The Fed Cattle Exchange Auction listed a total of 2,096 head, of which 1,496 actually sold, 220 were scratched from the auction and 380 head were listed as unsold, as they did not meet the reserve prices, which ranged from $142 to $145. Opening prices ranged from $139 to $140, high bids ranged from $139 to $142.50. The state-by-state breakdown looks like this: Texas 1,496 total head with 1,214 head sold at $142.00 to $142.50, 62 head went unsold and 220 head were scratched from the auction; Kansas 353 total head with 282 head sold at $141.25 to $142.25 and 71 head went unsold; Oklahoma 63 total head, all of which went unsold; California 69 total head, all of which went unsold; Iowa 115 total head, all of which went unsold.
Boxed beef prices are lower: choice down $0.92 ($269.45) and select down $2.11 ($265.71) with a movement of 74 loads (50.73 loads of choice, 9.45 loads of select, 7.44 loads of trim and 6.21 loads of ground beef).
FEEDER CATTLE:
You would think feeder cattle futures would be sweating over the corn and soybean rally, but the complex has its eyes locked on the upward trend that's developing in the live cattle contracts and continues to cling to the support that's being seen in sale barns. March feeders are down $0.60 at $168.12, April feeders are up $0.65 at $173.17 and May feeders are up $0.60 at $0.60 at $117.52. If the cash cattle market can pull off steady to higher trade this week, then the feeder cattle complex will likely keep its upward trajectory.
LEAN HOGS:
The lean hog complex is having a grandiose day with the futures market rallying $1.00 to $2.00 higher in its nearby contracts, the cash market jumping substantially and pork cutout prices higher at midday. April lean hogs are up $2.07 at $106.22, June lean hogs are up $1.75 at $115.45 and July lean hogs are up $1.70 at $114.62. The market is at the point where it's testing long-time resistance and the resistance levels last week's market backed away from. Seeing how Wednesday closes will be incredibly insightful.
The projected CME Lean Hog Index for 2/15/2022 is up $1.51 with a weighted average of $93.35, and the actual index for 2/14/2022 is up $1.33 at $91.84. Hog prices are higher on the National Direct Morning Hog Report up $11.20 with a weighted average of $89.94, ranging from $80.00 to $98.00 on 6,504 head and a five-day rolling average of $84.20. Pork cutouts total 146.97 loads with 118.39 loads of pork cuts and 28.58 loads of trim. Pork cutout values: up $3.65, $110.37.
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