GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts are trading lower while the lean hog complex keeps with Monday's aggressive momentum. So long as pork cutout values close higher, the lean hog complex could keep this rallying market well into Wednesday. April live cattle are down $0.48 at $164.625, March feeder cattle are down $0.45 at $186.75, April lean hogs are up $0.90 at $87.25, March corn is down 2 cents per bushel and March soybean meal is down $3.50. The Dow Jones Industrial Average is down 262.81 points.
LIVE CATTLE:
The live cattle complex isn't feeling the Valentine's Day love that's supposed to come with today's arrival, as all of its contracts are currently trading lower. But after the market ran to a new contract high Monday afternoon, traders are simply withdrawing from their rallying nature as they look to see how fundamentally the market shapes up before they move higher again. Boxed beef prices continue to print higher, which could make packers easier to work with in the cash market later this week. The cash cattle market hasn't seen any interest develop and it's not likely that trade happens until Thursday or Friday of this week. April live cattle are down $0.47 at $164.62, June live cattle are down $0.17 at $160.25 and August live cattle are down $0.12 at $159.27.
Boxed beef prices are higher: choice up $2.24 ($272.19) and select up $2.87 ($259.08) with a movement of 72 loads (35.28 loads of choice, 16.36 loads of select, 13.32 loads of trim and 7.09 loads of ground beef).
FEEDER CATTLE:
Even with the corn contracts trading lower, the feeder cattle contracts are merely chopping sideways through Tuesday's market as traders long for support again from both the live cattle/cash cattle markets. Demand has been strong in sales across the countryside as buyers know that the availability of both calves and feeders is only going to become thinner and thinner as time passes by. Monday afternoon's CME Feeder Cattle Index closed at $183.33. March feeders are down $0.50 at $186.70, April feeders are down $0.40 at $191.20 and May feeders are down $0.32 at $195.25.
LEAN HOGS:
The lean hog complex is keeping with Monday's energized theme as the market again charges higher into the day's noon hour. April lean hogs are up $0.90 at $87.25, June lean hogs are up $0.87 at $105.12 and July lean hogs are up $0.90 at $106.70. Midday pork cutout values are up modestly which could be a good sign for Tuesday's afternoon cutout values. So long as demand continues to support the market, trades will likely support the lean hog complex and continue to trade its contracts higher.
The projected lean hog index for Feb. 13 is up $0.54 at $75.18, and the actual index for Feb. 10 is up $0.63 at $74.64. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.21 with a weighted average of $75.26, ranging from $67.00 to $80.00 on 6,911 head and a five-day rolling average of $75.66. Pork cutouts total 168.83 loads with 156.65 loads of pork cuts and 12.18 loads of trim. Pork cutout values: up $1.74, $83.48.
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