GENERAL COMMENTS:
It's almost as if traders had to look at the cattle complex this morning and say, "Now, now, let's not get too greedy and overdo things," as they are now only mildly supporting the live cattle contracts but letting feeders trade lower. No new cash cattle trade has been reported and the week's business is likely done with. March corn is down 4 1/2 cents per bushel and March soybean meal is down $4. The Dow Jones Industrial Average is up 65.77 points.
LIVE CATTLE:
The live cattle market is trading split as Friday's noon hour approaches with the nearby contracts trading higher while the deferred contracts drift slightly lower. It's been an incredible week for the live cattle market as the Cattle Inventory report and strong cash cattle sales have all helped contribute to higher contract prices.
February live cattle are up $0.22 at $179.97, April live cattle are up $0.40 at $183.57 and June live cattle are up $0.22 at $181.35. No new cash cattle sales have been reported and it looks like the bulk of this week's trade is done. Throughout the week, Northern dressed sales have been mostly marked at $280, which is $3 higher than last week's weighted average. Trade in Texas has been marked at mostly $178, which is $3 higher than last week's weighted average. Kansas sales have ranged from $178 to $179, which is $4 to $5 higher.
Boxed beef prices are mixed: choice down $1.62 ($293.32) and select up $2.97 ($286.22) with a movement of 79 loads (58.26 loads of choice, 7.51 loads of select, 4.41 loads of trim and 8.88 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading lower following Thursday's aggressive gains. March feeders are down $0.35 at $244.50, April feeders are down $0.67 at $249.85 and May feeders are down $0.75 at $254.95. The market will likely close with this slightly lower tone as traders will approach next week's market with more willingness to support the complex so long as fundamental support (strong feeder cattle sales, strong fed cash cattle market and support live cattle prices) continues to thrive in the marketplace.
LEAN HOGS:
The lean hog complex continues to trade lower in its nearby contracts while some of the deferred months post mild gains. With pork cutout values being hit-or-miss this past week, traders are looking for more substantial fundamental support to justify keeping the market at these levels. Not to mention, the cash hog market has traded so thinly that it's hard for traders to gain an understanding of their needs given their limited market participation. February lean hogs are down $0.35 at $75.45, April lean hogs are down $0.17 at $83.57 and June lean hogs are up $0.12 at $97.32.
The projected lean hog index for Feb. 1, 2024, is up $0.41 at $73.12, and the actual index for Jan. 31, 2024, is up $0.33 at $72.71. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.59 with a weighted average price of $62.49, ranging from $60 to $67 on 728 head and a five-day rolling average of $62.20.
Pork cutouts total 173.27 loads with 154.83 loads of pork cuts and 18.45 loads of trim. Pork cutout values: Up $0.02, $88.61.
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