GENERAL COMMENTS:
The livestock complex saw mixed interest from traders through Friday's end, but all in all, it was a strong, dynamic week for the market with plenty of fundamental support backing traders' decisions. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.59 with a weighted average price of $61.76 on 1,336 head. March corn is down 4 1/2 cents per bushel and March soybean meal is down $4.90. The Dow Jones Industrial Average is up 251.66 points
From Friday to Friday, livestock futures scored the following changes: February live cattle up $2.10, April live cattle up $2.07; March feeder cattle up $5.10, April feeder cattle up $4.60; February lean hogs up $0.53, April lean hogs up $0.58; March corn down $0.04, May corn down $0.02.
LIVE CATTLE:
The live cattle complex powered through the week as traders were encouraged by the market's relentless fundamental support. Between seeing Wednesday's Cattle Inventory report to the cash cattle market's $3 to $5 higher trade, to the aggressive slaughter speed in which packers ran -- the market had ample reason why it should have traded higher and it didn't squander this opportunity.
February live cattle closed $0.80 higher at $180.55, April live cattle closed $0.57 higher at $183.75 and June live cattle closed $0.65 higher at $181.77. A few bids were offered in the cash cattle market Friday but the day's trade was dismal. Throughout the week, Northern cattle sold for $280, which is $3 higher than last week's weighted average. Trade in Texas was mostly marked at $178, which is $3 higher, but in Kansas, cattle sold for $178 to $179, $4 to $5 higher than the previous week's weighted average.
Friday's slaughter is estimated at 124,000 head -- 3,000 head more than a week and a year ago. Saturday's slaughter is projected to be around 8,000 head. The week's total slaughter is estimated at 637,000 head -- 19,000 head more than a week ago and steady from a year ago.
Boxed beef prices closed mixed: Choice down $1.86 ($293.08) and select up $0.22 ($283.47) with a movement of 147 loads (106.91 loads of choice, 21.91 loads of select, 5.16 loads of trim and 13.48 loads of ground beef).
MONDAY'S CATTLE CALL: Higher. Given that packers are running faster chain speeds, they'll likely continue to support the cash market even if that means paying steady/somewhat higher cash prices again next week.
FEEDER CATTLE:
The feeder cattle complex may have closed slightly lower ahead of Friday's end, but the market still performed extremely well throughout the week. Friday's regression doesn't seem to be a move being made by traders as they rethink their decisions made earlier this week, but rather that traders ran the market substantially higher earlier this week and didn't want to over-do the upward trend ahead of the week's end.
March feeders closed $0.07 lower at $244.80, April feeders closed $0.32 lower at $250.20 and May feeders closed $0.42 lower at $255.27. The Oklahoma Weekly Cattle Auction Summary shared that compared to a week ago, and throughout the entire state, feeder steers traded $5 to $15 higher, with the biggest advancements seen on the steers weighing under 800 pounds.
Feeder heifers traded $2 to $8 stronger. Steer calves sold $15 to $25 higher, and heifer claves sold $10 to $20 higher. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 2/1/2024: Up $1.22, $239.17.
LEAN HOGS:
Even though cash prices and afternoon pork cutout values closed lower, the lean hog market was able to sneak through Friday's close with mostly higher prices. February lean hogs closed $0.35 lower at $75.45, April lean hogs closed $0.07 higher at $83.82 and June lean hogs closed $0.30 higher at $97.50. Carcass price closed lower as most of the cuts posted day-over-day losses, except belly which closed $7.09 higher. Pork cutouts totaled 318.53 loads with 280.26 loads of pork cuts and 38.27 loads of trim.
Pork cutout values: Down $0.19, $88.40. Friday's slaughter is estimated at 487,000 head -- 8,000 head more than a week ago and 5,000 head more than a year ago. Saturday's slaughter is projected to be around 249,000 head. The CME lean hog index 1/31/2024: Down $0.33, $72.71.
FRIDAY'S HOG CALL: Lower. Given that packers rarely show the cash market interest on Mondays, it's unlikely they'll decide to buy hogs later in the week.
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