GENERAL COMMENTS:
Positive tones are the face of the livestock complex as the market heads into Friday's noon hour. The cash cattle market could see a little more clean-up trade develop ahead of the week's end, but largely prices are set and feedlots aren't seeming too worried about getting any more cattle moved. March corn is down 1/4 cent per bushel and January soybean meal is up $13.70. The Dow Jones Industrial Average is down 458.38 points.
LIVE CATTLE:
The live cattle complex is trending slightly higher into Friday afternoon as the market is proud of the accomplishments in this week's cash cattle arena and hopes to even see a little more clean-up trade ahead of the day's end. December live cattle are up $0.65 at $154.70, February live cattle are up $0.47 at $155.32 and April live cattle are up $0.55 at $159.47. There's a sole bid being offered in Texas for $155, but thus far no one has accepted its offer. It's likely that some more clean-up trade could develop ahead of the day's end, but for cattle left on showlists Southern feedlots are asking $156 to $157 and Northern feedlots are asking $250 plus. The spot February contract is teetering with its 40-day moving average, signaling that the market sees that there's more upside to be had so long as the market's fundamentals continue to push the futures complex in that direction.
A light to moderate trade took place yesterday with dressed deals in Nebraska and Iowa marked at mostly $248, $1 higher than last week's weighted averages, live business in Kansas and Texas was at mostly $155, steady to $0.50 lower than the prior week's weighted average.
Boxed beef prices are higher: choice up $6.58 ($260.88) and select up $5.99 ($234.50) with a movement of 49 loads (35.68 loads of choice, 4.59 loads of select, 3.99 loads of trim and 4.59 loads of ground beef).
FEEDER CATTLE:
With corn trading steady to a penny lower into Friday afternoon, the feeder cattle contracts are fronting a modest rally ahead of the noon hour. With the positive support from yesterday's higher close in boxed beef prices, and steady to slightly higher trade in the cash cattle market -- feeders deemed that there was enough support in the market to justify trading higher. January feeders are up $0.97 at $184.05, March feeders are up $0.42 at $185.10 and April feeders are up $0.35 at $188.60. So long as the corn complex doesn't strengthen ahead of Friday's end and the live cattle contracts keep trading in this positive manner -- a higher close shouldn't be an issue for the feeder cattle market.
LEAN HOGS:
The lean hog complex has found technical support around the threshold of $82.00 and combined with the market's higher trade in the cash sector and stronger pork cutout value close Thursday afternoon -- the market is now able to front an impressive rally into Friday's afternoon. February lean hogs are up $2.97 at $84.62, April lean hogs are up $2.47 at $91.65 and June lean hogs are up $1.77 at $105.80. If pork cutout values can indeed close higher again this afternoon, then the market stands a strong chance at keeping this momentum into next week as it's a long way from any resistance in the futures market.
The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.64 with a weighted average of $79.94 ranging from $74.00 to $85.00 on 4,917 head and a five-day rolling average of $81.04. Pork cutouts total 132.64 loads with 121.95 loads of pork cuts and 10.69 loads of trim. Pork cutout values: up $2.50, $87.99.
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