GENERAL COMMENTS:
This week is the first full week of trade in the last two weeks, creating more interest in the market following the New Year's Day holiday. Price support over the last couple of weeks in both cattle and hog futures has helped to move the focus away from bearish market intentions and current production levels to possible demand support developing through the upcoming weeks and months.
Mixed trade is seen across livestock trade Monday morning, but prices have moved away from session lows as the session has continued with firm gains seen in feeder cattle futures and light to moderate buying trickling into the lean hog complex.
Outside market pressure is also helping to put more technical support into livestock trade as the grain and stock markets are showing early week uncertainty. March corn is down 6 1/2 at $4.543 and March soybean meal is down $0.70 at $368.7. The Dow Jones Industrial Average is down 65.11 at 37,401.00.
LIVE CATTLE:
Live cattle futures are mixed Monday morning with a midday trading range from 40 cents lower to 40 cents higher. The overall lack of aggressive direction in the futures market is not surprising, despite firmer gains holding in feeder cattle futures. Traders in the live cattle complex continue to be still searching for longer-term answers surrounding consistent support in cash values as well as the ability to steadily move beef values higher. Nearby live cattle futures remain well rooted above support levels, which may limit additional active market growth with a lot of questions and uncertainty surrounding the long-term production levels over the next six months as well as beef demand growth during 2024.
Cash cattle activity remains at a standstill with show list distribution and inventory taking seen in all areas.
Winter storms moving through much of the Northern cattle country over the next couple of days could limit overall movement from feedlots, but feeders still are focusing on the potential for steady to higher cash cattle trade by the end of the week.
February live cattle are $0.53 higher at $171.1, April live cattle are $0.15 higher at $173.55, June live cattle are $0.18 higher at $170.725.
Boxed beef prices are mixed: choice up $1.18 ($278.34) and select down $0.10 ($259.43) with a movement of 55.03 loads (35.48 loads of choice, 9.09 loads of select, zero loads of trim and 10.46 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have been the bright spot of livestock trade Monday morning with triple-digit gains seen in nearby contracts during much of the morning. The combination of firming cash cattle trade over the last two weeks as well as a strong pullback in grain prices and overall production costs, feeder cattle buyers are taking advantage of outside market moves while they can.
All feeder cattle contracts are trading higher at midday, which is the only livestock market posting solid gains through the entire complex Monday morning.
January feeders are $1.38 higher at $224.5, March feeders are $1.48 higher at $225.625 and April feeders are $0.98 higher at $230.75.
LEAN HOGS:
Lean hog futures have posted moderate to firm gains in nearby contract months, although deferred futures have become much more hesitant to move in a positive direction. The mixed trade direction seen in early week activity is still focusing on lack of market consistency. Although nearby contracts are willing to extend last week's gains, the opportunity for position taking in the last half of 2024 while overall pork demand uncertainty continues is allowing for the mixed movement in price levels.
February lean hogs are $0.55 higher at $70.55, April lean hogs are $1.00 higher at $77.375 and May lean hogs are $0.45 higher at $83.60. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 183.26 loads with 147.05 loads of pork cuts and 36.21 loads of trim. Pork cutout values are down $0.25 at $83.12.
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