GENERAL COMMENTS:
What a week it was for the livestock complex! Gains were seen consistently throughout all three of the livestock contracts but the biggest contributing factor to the contracts' upward run was demand. Boxed beef prices were well supported this past week and pork cutout values traded higher too with the hope that more international demand picks up. Hog prices closed higher on the Daily Direct Afternoon Hog report, up $1.64 with a weighted average price of $56.27 on 3,058 head. March corn is down 5 1/2 cents per bushel and March soybean meal is down $9.20. The Dow Jones Industrial Average is up 60.30 points.
From Friday to Friday livestock futures scored the following changes: February live cattle up $4.08, April live cattle up $4.30; March feeder cattle up $7.75, April feeder cattle up $8.13; February lean hogs up $4.18, April lean hogs up $5.10; March corn up $0.01, May corn steady.
LIVE CATTLE:
This past week was an absolute victory for the live cattle market. There's the old saying, "the cattle market loves a storm," and even though the market is reacting on the backside of the storm's arrival, it's darn sure rallying. February live cattle closed $0.72 higher at $178.45, April live cattle closed $0.97 higher at $181.67 and Juen live cattle closed $1.25 higher at $178.85. The cash cattle market didn't see any more trade develop, although bids were offered up once again in the North. Throughout the week Southern live cattle sold for $174 to mostly $175 which is $2.00 higher than last week's weighted average, and Northern dressed cattle sold for $277 which is $3.00 higher than last week's weighted average.
Friday's slaughter is estimated at 121,000 head -- steady with a week ago but 1,000 head less than a year ago. Saturday's slaughter is expected to be around 5,000 head. The week's totaled slaughter is estimated at 618,000 head -- 1,000 head more than a week ago but 35,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.85 ($300.53) and select up $1.28 ($289.13) with a movement of 76 loads (50.73 loads of choice, 11.71 loads of select, 4.34 loads of trim and 9.00 loads of ground beef). Throughout the week choice cuts averaged 299.81 (up $4.48 from the previous week) and select cuts averaged $287.84 (up $7.36 from the previous week) and the week's total movement of cuts, grinds, and trim totaled 526 loads.
MONDAY'S CATTLE CALL: Higher. It's unlikely that trade will develop on Monday, but when cattle do trade next week prices will likely be higher.
FEEDER CATTLE:
The feeder cattle market rallied through Friday's end as traders were gifted support from nearly every segment of the industry. With both the live cattle and cash cattle markets trading higher, buyer interest strong throughout the countryside for both feeders and calves, and the corn market rounding out the week lower -- traders didn't feel the need to be cautious given that support was so widespread. March feeders closed $1.52 higher at $239.70, April feeders closed $1.67 higher at $245.60 and May feeders closed $1.92 higher at $251.17. The CME feeder cattle index 1/25/2023: not available at this time.
LEAN HOGS:
The lean hog complex kept with its ambitious nature through Friday's close thanks to the support of pork demand and the hopes that more export opportunities will arise in the near future. The spot April contract was able to close at the highest price-point in which it's traded at since last October. Pork cutout values closed evenly across the board with the only decline seen today being in the rib, and the biggest gain being in the butt. February lean hogs closed $0.62 higher at $74.92, April lean hogs closed $0.70 higher at $83.25 and June lean hogs closed $0.75 higher at $96.00. Pork cutouts totaled 269.79 loads with 234.03 loads of pork cuts and 35.76 loads of trim. Pork cutout values: up $0.60, $89.51. Friday's slaughter is estimated at 490,000 head -- 13,000 head more than a week ago and steady with a year ago. Saturday's slaughter is projected to be around 294,000 head. The CME lean hog index 1/24/2024: up $0.28, $69.67.
MONDAY'S HOG CALL: Steady. Packers barely supported the cash market this past week which likely means that they'll need to be more aggressive next week but they'll likely wait until the middle of the week to do so.
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