GENERAL COMMENTS:
Tuesday has been a prosperous day for the livestock complex as all three livestock markets are trading higher into Tuesday's noon hour. But the lean hog market is thus far seeing the biggest gains as its nearby contracts are rallying $1 to $2 higher. No cash cattle trade has been reported yet and the week's trade is likely delayed until after Wednesday. March corn is up 1/4 cent per bushel and March soybean meal is up $3.10. The Dow Jones Industrial Average is down 174.27 points.
LIVE CATTLE
It's a strong day for the live cattle complex as traders continue to advance the contracts even though they're near resistance levels. So long as beef demand continues to print higher prices and show ample demand interest, the market could break out of its current trading range and etch higher. February live cattle are up $1 a $174.77, April live cattle are up $1.12 at $178.02 and June live cattle are up $0.85 at $175.12. No cash cattle trade has been reported and trade will likely be delayed until the later in the week. Seeing what today's slaughter amounts to will be insightful as packers bought very few cattle last week and could need to be more aggressive in this week's cash market if they're going to amp up chain speeds.
Boxed beef prices are higher: Choice up $2.34 ($301.01) and select up $2.87 ($289.45) with a movement of 56 loads (31.39 loads of choice, 7.32 loads of select, 6.11 loads of trim and 10.95 loads of ground beef).
FEEDER CATTLE
With the live cattle complex sporting higher prices amid stronger boxed beef values, the feeder cattle complex hasn't batted an eye at trading higher -- especially alongside these weaker corn prices. January feeders are up $1.17 at $231, March feeders are up $1.40 at $232.67 and April feeders are up $1.40 at $238.50. The spot march contract is nearing resistance at which point traders are going to be posed with the decision to advancing the market or trading at these levels. Thankfully, feeder cattle interest has been stellar this week as sales have been slow thus far through January thanks to weather conditions.
LEAN HOGS
Annie, bar the door -- the lean hog market is determined to soar! Unexpectedly the lean hog market has seen the biggest gains throughout the day as there's seeming to be better pork demand overall. February lean hogs are up $2.30 at $73.22, April lean hogs are up $2.85 at $80.47 and June lean hogs are up $1.67 at $93.47. If the market closes with this much momentum, the trend in pork prices will undoubtedly turn higher and could lay the foundation for a rally if demand remains active both here domestically and internationally. Monitoring slaughter speeds, cutout values and Thursday's export data will help confirm whether the market is going to keep with its current ambitious tone.
The projected lean hog index for Jan. 22 is up $0.35 at $68.75, and the actual index for Jan. 19 is up $0.34 at $68.40. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.18 with a weighted average price of $47.41, ranging from $44 to $52 on 3,225 head and a five-day rolling average of $46.63. Pork cutouts total 164.81 loads with 152.51 loads of pork cuts and 12.30 loads of trim. Pork cutout values: down $0.42, $89.75.
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