GENERAL COMMENTS:
With both the live cattle and feeder cattle markets breaking past resistance, monitoring this afternoon's close will be insightful as it could indicate how serious traders are on advancing the contracts. Bids are currently on the table in Texas and Kansas, but thus far no cattle have traded hands. March corn is up 5 cents per bushel and March soybean meal is up $2.50. The Dow Jones Industrial Average is up 117.10 points.
LIVE CATTLE
The cattle complex is leaning into Wednesday's trade and continues to trade higher even though the market is fully aware that midday boxed beef prices are lower and that corn prices are posting a subtle $0.03 to $0.04 rally. A couple bids are on the table in the South at $174, but with Southern feedlots asking $176 this week, no cattle have traded yet. Asking prices in the North are posted at $276, but no bids are currently on the table in the North. It will be interesting to see how packers play their cards this week given that boxed beef prices have added more of an incentive for packers to increase processing speeds – which means that they'll need to be more aggressive in their cattle procurement. Today's slight regression in boxed beef prices could be seen as worrisome, but with choice prices still above $300.00, there is still plenty of money for packers to have at that price point. February live cattle are up $0.65 at $175.30, April live cattle are up $0.37 at $178.17 and June live cattle are up $0.32 at $175.27.
Boxed beef prices are lower: choice down $1.12 ($300.54) and select down $1.54 ($286.84) with a movement of 80 loads (49.42 loads of choice, 13.83 loads of select, 4.83 loads of trim and 12.20 loads of ground beef).
FEEDER CATTLE
Seeing that it still has the support of the live cattle market, the feeder cattle contracts continue to trade higher despite corn prices being up slightly. Demand continues to remain strong this week in the countryside for feeder cattle as sales have been tough to get to thus far in 2024 and buyers know that there aren't many calves/feeders left to be had, and the closer time gets to turn out and green grass, the more expensive these cattle are likely to become. March feeders are up $0.82 at $234.47, April feeders are up $0.67 at $240.22 and May feeders are up $0.65 at $245.40.
LEAN HOGS
The lean hog complex is keeping with its ambitious nature as the contracts again trade higher today. Fueled by strong demand and the hopes that there will be more pork demand in the future with China culling down on its sows, the market has much to be excited about. February lean hogs are up $0.25 at $73.52, April lean hogs are up $1.27 at $81.60 and June lean hogs are up $1.15 at $94.50.
The projected lean hog index for 1/23/2024 is up $0.63 at $69.39, and the actual index for 1/22/2024 is up $0.35 at $68.75. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.94 with a weighted average price of $51.35, ranging from $43.00 to $55.00 on 944 head and a five-day rolling average of $47.40. Pork cutouts total 142.67 loads with 119.58 loads of pork cuts and 23.09 loads of trim. Pork cutout values: up $2.19, $90.22.
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