GENERAL COMMENTS:
Weakness is seen in all livestock futures trade Friday morning with light to moderate losses developing in all contract months. Lean hog futures are showing the most significant pressure, although any downward price moves are based more on position adjustments and short-term corrections, rather than liquidation efforts. Trade remains sluggish ahead of the long holiday weekend and winter storms are blowing through the Midwest the next few days. Late-day trade is expected to remain limited, although some additional late-session price shifts may continue to develop in both cattle and lean hog trade. March corn is down 3 1/2 at $4.543 and March soybean meal is up $0.60 at $362.8. The Dow Jones Industrial Average is down 210.77 at 37,500.25.
LIVE CATTLE
Live cattle futures have slowly pulled back from gains seen over the previous trading sessions as limited end of the week trade volume is seen Friday morning. With markets closed Monday, the focus across the entire livestock market, and especially in live cattle futures, is on end-of-week profit-taking following the firm gains the last couple of trading sessions. April through October futures are posting the most aggressive price pressure of 65 to 72 cents per cwt at midday, although given the sideways nature of the live cattle complex over the past two weeks, this shift is not expected to be viewed as significant. Cash cattle trade remains at a standstill despite limited trades reported in the North Thursday afternoon. Another round of winter weather is blowing through northern cattle country, dumping additional snow and bringing about extreme cold conditions. This has taken the emphasis off selling cattle in some areas and put more focus on maintaining animal health. Asking prices remain at $275 and higher dressed, and $174 and higher live basis. Deals done Thursday are reported at $272 to $275 per cwt, although some late Friday trade is still expected before the end of the week. February live cattle are $0.38 lower at $171.425, April live cattle are $0.65 lower at $173.925, June live cattle are $0.63 lower at $171.35
Boxed beef prices are higher: choice up $3.69 ($289.58) and select up $2.08 ($272.02) with a movement of 72.54 loads (53.59 loads of choice, 11.25 loads of select, zero loads of trim and 7.70 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have softened Friday morning with light to moderate pressure seen through morning trade. An attempt to rekindle buyer support in the last couple hours of trade has helped pull price levels away from session lows, but it is uncertain just how much additional support will be seen through the end of the day due to generally light trade. Markets will remain closed Monday, which is also keeping traders focused on position-squaring opportunities following the steady but supportive moves higher over the last few days. January feeders are $0.25 lower at $226.025, March feeders are $0.43 lower at $226.975 and April feeders are $0.23 lower at $232.50.
LEAN HOGS:
Lean hog futures are adjusting prices lower Friday morning with limited new information available to the futures complex that traders are willing to trade on. The majority of market pressure seen through the morning has been focused on position adjustments and profit-taking opportunities following the $7 per cwt rally in the last week. This has moved nearby lean hog futures from contract lows to nearly two-month highs in a swift directional change through the complex. Given the market moves over the last two trading sessions, it would not be surprising if late-day buyers move into the complex at the end of Friday, posting additional gains in nearby contracts. With markets being closed Monday, limited volume is already being seen Friday morning, and could limit overall trade activity through the rest of the session. February lean hogs are $0.13 lower at $72.475, April lean hogs are $0.40 lower at $78.65 and May lean hogs are $0.30 lower at $84.45. Hog prices are lower on the Daily Direct Morning Hog report, down $0.97 with a weighted average of $44.55, ranging from $44.00 to $45.00 on 360 head with a five-day rolling average of $45.13. Pork cutouts totaled 212.70 loads with 198.10 loads of pork cuts and 14.60 loads of trim. Pork cutout values are down $5.00 at $83.09.
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