GENERAL COMMENTS:
It was a tremendous day again for livestock contracts as all three markets closed higher. Cattle contracts closed sharply higher as strong advancements in the cash market grabbed traders' attention. Hog prices closed higher on the Daily Direct Afternoon Hog report, up $1.53 with a weighted average price of $54.63 on 2,538 head. March corn is down 1/2 cent per bushel and March soybean meal is down $5.10. The Dow Jones Industrial Average is up 242.74 points.
Thursday's export report shared that beef net sales of 22,400 metric tons (mt) for 2024 were primarily for South Korea (9,600 mt), China (3,100 mt) and Japan (2,800 mt). Pork net sales of 24,100 mt were primarily for Mexico (9,700 mt), Japan (3,100 mt) Australia (2,200 mt).
LIVE CATTLE:
What a day for the live cattle market! There are times when I believe true price discovery is all but dead and a thing of the past in the live cattle/fat cattle market, but it's days like today I'm thankfully proven wrong.
Feedlot managers deserve a pat on the back for waiting the week out and being disciplined enough to wait for higher prices that eventually came their way. Trade was scarce this morning, but as time passed, packers got more and more anxious and eventually ended up upping their bids. Throughout the day, Southern live cattle traded for $74 to mostly $175 which is $2 higher than last week's weighted average. Northern dressed cattle sold for $277, which is $3 higher than last week's weighted average. Asking prices for cattle left to sell remain firm at $278 in the North and $176 in the South.
The cash cattle market's exhilarating trade sparked the interest of traders, and this is what drove the contracts higher ahead of today's close. February live cattle closed $2.37 higher at $177.72, April live cattle closed $2.35 higher at $180.70 and June live cattle closed $2.15 higher at $177.60.
Thursday's slaughter is estimated at 126,000 head -- 5,000 head more than a week ago and 2,000 head more than a year ago. Thursday's actual slaughter data shared that for the week ending Jan. 13, 2024. Steers averaged 927 pounds, which is 10 pounds less than the previous week but 13 pounds more than a year ago. For the same week, heifers averaged 849 pounds, which is two pounds less than last week but 16 pounds more than a year ago.
Boxed beef prices closed mixed: Choice down $0.82 ($298.68) and select up $0.61 ($287.85) with a movement of 146 loads (116.05 loads of choice, 12.36 loads of select, 9.62 loads of trim and 8.07 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady with the week's trend. Given that cattle have sold in both regions now, it's likely that any more sales will be steady with the week's trend.
FEEDER CATTLE:
The feeder cattle complex caught wind of the exciting trading in today's cash cattle market, and all but looked at one another and said, "It's time to let 'er rip boys," before sending the contracts $3 to $4 higher. The stronger the cash cattle market, the more excitement and opportunity grow and expand throughout the feeder cattle complex. March feeders closed $4.40 higher at $238.17, April feeders closed $4.12 higher at $243.92 and May feeders closed $4.15 higher at $249.25.
At the Winter Livestock Auction in Pratt, Kansas, and at the midsession point, compared to last week, feeder steers were selling $2 to $6 higher, and although an accurate test wasn't established, heifers were noted to be selling with a stronger undertone, too. Feeder cattle supply over 600 pounds was 91%. The CME feeder cattle index 1/24/2024: Up $0.47, $230.68.
LEAN HOGS:
The lean hog market kept with its rallying nature through Thursday's end as once again contracts closed higher. The cash hog market has been lousy this week, but that hasn't seemed to worry traders. Pork cutout values closed slightly higher again Thursday afternoon with the rib and belly doing most of the heavy lifting to keep the carcass price trending higher.
February lean hogs closed $0.40 higher at $74.30, April lean hogs closed $0.52 higher at $82.55 and June lean hogs closed $0.40 higher at $95.25. Pork cutouts totaled 336.65 loads with 279.12 loads of pork cuts and 57.53 loads of trim.
Pork cutout values: Up $0.05, $88.91.
Thursday's slaughter is estimated at 480,000 head -- 4,000 head less than a week ago and 7,000 head less than a year ago. The CME lean hog index Jan. 23, 2024: Up $0.64, $69.39.
FRIDAY'S HOG CALL: Steady. Given that packers have shown this week's market virtually no interest, it's likely that Friday will be no different.
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