GENERAL COMMENTS:
The livestock complex is trading mostly higher as the live cattle complex is elated to see the strong nature of today's USDA Outlook Forum report. The lean hog market could hardly believe the 71,900 metric tons (mt) reported in this morning's export report. March corn is down 1/4 cent per bushel and March soybean meal is down $3.10. The Dow Jones Industrial Average is up 189.03 points.
Thursday's exports shared that beef net sales of 16,600 mt for 2024 were down 19% from the previous week and 18% from the prior four-week average. The three primary buyers were Japan (4,100 mt), China (3,700 mt) and South Korea (3,200 mt). Pork net sales of 71,900 mt for 2024 were up 83% from the previous week and up noticeably from the prior four-week average. The three primary buyers were Mexico (25,000 mt), China (19,500 mt) and Japan (9,100 mt).
LIVE CATTLE:
The live cattle complex is trading higher as the market received bullish support from today's USDA Outlook for the 2024 markets and found technical support as traders may be finding comfort in the current trading range. February live cattle are up $0.80 at $183.20, April live cattle are up $1.15 at $185.22 and June live cattle are up $0.75 at $181.87. The cash cattle market currently has a bid of $287 to $289 on the table in Nebraska, but following Wednesday's trade, no new sales have been reported. There was a light movement on Wednesday where Southern live cattle traded for $180, $2 lower than last week's weighted average, and a few sales were reported in the North at $180 to $181, which is steady to $1 lower than last week's weighted average in that region.
Boxed beef prices are higher: Choice up $1.19 ($295.19) and select up $3.84 ($287.86) with a movement of 66 loads (37.95 loads of choice, 10.76 loads of select, 10.40 loads of trim and 6.55 loads of ground beef).
FEEDER CATTLE:
Feeder cattle contracts have gained some strength as the day has traded onward, thanks to the spillover optimism coming from the live cattle complex and the continued buying support in sales across the countryside. March feeders are up $0.47 at $246.70, April feeders are up $0.40 at $249.97 and May feeders are up $0.05 at $253.00. In today's USDA 2024 Outlook report, it was positive for feeders to note that feeder cattle prices in 2024 are expected to be roughly $30.00/cwt more in 2024 than they were in 2023.
LEAN HOGS:
If today's export report wasn't enough to jolt the lean hog contracts into a stronger position, I don't know what will. Thankfully, traders also noted the strong export sales report and gapped the contracts higher which is extremely supportive following the massive gains seen in Wednesday's market. April lean hogs closed $1.02 higher at $85.52, June lean hogs closed $1.37 higher at $98.15 and July lean hogs closed $1.02 higher at $98.85.
The projected lean hog index for Feb. 14 is up $0.52 at $75.12, and the actual index for Feb. 13 is up $0.48 at $74.60. Hog prices are higher in the Daily Direct Morning Hog Report, up $2.29 with a weighted average price of $68.32, ranging from $61.50 to $70 on 800 loads and a five-day rolling average of $67.18.
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