GENERAL COMMENTS:
All three livestock markets were able to round out the day higher as the market was flooded with ample fundamental support. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.11 with a weighted average price of $69.45 on 2,988 head. March corn is down 1 1/4 cents per bushel and March soybean meal is up $6.10. The Dow Jones Industrial Average is down 166.25 points.
From Friday-to-Friday livestock futures scored the following changes: February live cattle up $0.15, April live cattle up $0.83; March feeder cattle up $3.88, April feeder cattle up $1.78; April lean hogs up $4.08, June lean hogs up $2.75; March corn down $0.13, May corn down $0.12.
LIVE CATTLE:
The live cattle complex ran with the strength that its fundamentals continue to support. Between limited supplies of cattle and excellent beef demand, the market powered through Friday's end nearly effortlessly. February live cattle closed $1.37 higher at $184.77, April live cattle closed $1.95 higher at $187.55 and June live cattle closed $0.95 higher at $182.82. Throughout the week, Northern cattle have sold for $287 to $288 dressed, which is steady to $1 lower than last week's weighted average, and Southern live cattle have traded for mostly $180, $2 lower than last week's weighted average.
Friday's slaughter is estimated at 120,000 head -- 3,000 head more than a week ago and 1,000 head less than a year ago. Saturday's slaughter is projected to estimate 2,000 head. The week's total slaughter is estimated at 608,000 head -- 14,000 head less than a week ago and 21,000 head less than a year ago.
Boxed beef prices closed mixed: Choice up $0.90 ($296.20) and select down $1.33 ($286.66) with a movement of 108 loads (75.67 loads of choice, 9.29 loads of select, 7.04 loads of trim and 16.29 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Packers will have to participate in next week's cash market to avoid becoming short-bought, but they'll likely keep the market as close to steady as possible.
FEEDER CATTLE:
The stars aligned again for the feeder cattle complex to trade higher and traders didn't sleep on the day's opportunity. March feeders closed $3.92 higher at $251.02, April feeders closed $3.32 higher at $253.55 and May feeders closed $2.72 higher at $255.62.
Now that the spot March contract has blown past current resistance levels, the next market will be challenged with supporting that move or falling back below resistance levels. The Weekly Oklahoma Cattle Auction Summary shared that compared to last week and throughout the entire state, feeder steers and heifers traded mostly steady, but steer calves traded steady to $4 higher and heifer calves traded $2 to $4 higher. Feeder cattle supply over 600 pounds was 63%. The CME feeder cattle index Feb. 15: Down $0.35, $244.58.
LEAN HOGS:
The lean hog complex kept its rallying nature through Friday's end as the market simply came into too much good news in the last half of the week and ended on a softer note. Between Thursday's jaw-dropping export report to USDA's supportive 2024 outlook, traders ran with the support they were given and didn't look back. April lean hogs closed $0.22 higher at $85.22, June lean hogs closed $0.05 higher at $97.75 and July lean hogs closed $0.05 higher at $98.62.
Between the $7 jump in the rib and the $5.17 jump in the belly, the afternoon's carcass price had no issue closing higher. Pork cutouts totaled 333.92 loads with 293.38 loads of pork cuts and 40.55 loads of trim.
Pork cutout values: Up $0.78, $90.57. Friday's slaughter is estimated at 482,000 head -- 2,000 head less than a week ago and 11,000 head more than a year ago. Saturday's slaughter is projected at 122,000 head. The CME lean hog index Feb. 14: Up $0.52, $75.12.
TUESDAY'S HOG CALL: Steady. Packers showed more cash interest late in the week, indicating they'll need to procure some more supplies in the near term.
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