GENERAL COMMENTS:
The livestock complex is off to a strong start for the new week as all three of the livestock markets are trading higher into Tuesday's afternoon. For both the pork and beef markets, phenomenal demand has helped keep the live cattle and lean hog contracts trading higher as demand has been more robust than anyone assumed. March corn is up 1 cent per bushel and March soybean meal is up $5.10. The Dow Jones Industrial Average is down 565.60 points.
LIVE CATTLE:
The live cattle complex is keeping with its upward trend as the market trades $0.25 to $0.60 higher into Tuesday's noon hour. The sheer demand from consumers has been incredible thus far through 2023, and so long as consumer demand holds, packers will likely remain active participants in the cash market, which continues to give traders the confidence they need to progress the contracts higher. April live cattle are up $0.27 at $164.92, June live cattle are up $0.60 at $160.72 and August live cattle are up $0.40 at $159.45. Cash cattle prices will likely be higher again this week as supplies are thin and packers need cattle. A few early asking prices are noted in the South at $164 plus but are still not established in the North.
Last week's negotiated cash cattle trade totaled 76,616 head. Of that 77% (59,190 head) were committed for the nearby delivery, while the remaining 23% (17,426 head) were committed for the deferred delivery.
Boxed beef prices are higher: choice up $3.83 ($286.72) and select is up $2.57 ($270.62) with a movement of 51 loads (31.26 loads of choice, 11.18 loads of select, zero loads of trim and 8.78 loads of ground beef).
FEEDER CATTLE:
As the corn complex has tamed its momentum rolling into Tuesday's market, the feeder cattle contracts have gained strength as the market looks to its cattle counterpart (the live cattle contracts) and notes its higher trend. Heading into Tuesday's noon hour, the corn contracts are trading mostly steady, which isn't putting too much pressure on the feeder cattle contracts. So long as feeders can continue to see demand in the countryside and support from the live cattle/cash cattle market, higher prices across the board are attainable. Some sales in South Dakota have canceled their weekly feeder cattle auction for the week as they prepare for a blistery snowstorm. March feeders are up $0.45 at $186.97, April feeders are up $0.52 at $190.92 and May feeders are up $0.75 at $195.10.
LEAN HOGS:
The lean hog complex hasn't tiptoed gingerly into Tuesday's market as the complex has boldly run higher right from the day's start. April lean hogs are up $3.65 at $88.92, June lean hogs are up $2.35 at $105.07 and July lean hogs are up $2.50 at $107.10. The interest from traders, combined with the steady support of consumers, has allowed the hog market to gain stability and turn its trading trend higher. So long as consumer support remains vibrant in this week's market, the complex shouldn't struggle to keep its upward trend.
The projected lean hog index for Feb. 18 is up $0.35 at $76.76, and the actual index for Feb. 17 is up $0.32 at $76.41. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.88 with a weighted average of $77.76, ranging from $75.00 to $80.00 on 7,889 head and a five-day rolling average of $76.99. Pork cutouts total 158.75 loads with 146.75 loads of pork cuts and 12.01 loads of trim. Pork cutout values: up $0.27, $87.99.
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