GENERAL COMMENTS:
It was a positive day for the livestock complex as all three markets closed mostly higher. No cash cattle trade developed and trade is likely delayed until Thursday or Friday. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.82 with a weighted average price of $70.25 on 1,953 head. March corn is up 2 1/4 cents per bushel and March soybean meal is up $2.00. The Dow Jones Industrial Average is down 64.19 points.
LIVE CATTLE:
The live cattle complex closed mostly higher, although a couple of its nearby contracts rounded out the day lower. The market is likely pulling back slightly as traders note that packers have pulled back processing speeds. Friday's Cattle on Feed report is expected to be extremely supportive given that placements are expected to be 13% lower than a year ago. The real question of the report is whether bullishness/optimism is already built in the market or not.
No cash cattle trade developed and trade is likely delayed until Thursday or Friday. April live cattle closed $0.22 lower at $187.32, June live cattle closed $0.12 higher at $182.95 and August live cattle closed $0.37 higher at $181.95.
Tuesday's slaughter is estimated at 125,000 head -- steady from a week ago and 1,000 head less than a year ago. Monday's slaughter is estimated at 104,000 head -- 11,000 head less than a week ago and 3,000 head more than a year ago.
Boxed beef prices closed higher: Choice up $0.28 ($297.37) and select up $0.42 ($287.82) with a movement of 110 loads (65.84 loads of choice, 17.01 loads of select, 11.06 loads of trim and 15.85 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Packers are going to fight to keep the cash market steady as they try to pull back the reins on the market's strong fundamentals, which is quite difficult when demand is this strong and supplies are this tight.
FEEDER CATTLE:
The feeder cattle complex didn't bat an eye at trading higher through Tuesday's close. From strong feeder cattle demand in the countryside to the strong fundamental footing the market possesses to the expectation that Friday's Cattle on Feed report will be extremely bullish -- feeders have nothing but optimism and demand surrounding their market.
March feeders closed $0.35 higher at $251.37, April feeders closed $1.80 higher at $255.35 and May feeders closed $2.50 higher at $258.12. At Oklahoma National Stockyards in Oklahoma City, compared to last week, feeder steers and heifers sold fully steady but steer and heifer calves weaned with multiple rounds of shots sold $2 to $5 higher. Cattle suitable for grazing sold extremely well. Feeder cattle supply over 600 pounds was 67%. The CME feeder cattle index Feb. 19: Up $0.38, $242.65.
LEAN HOGS:
The lean hog complex ran through Tuesday's end without any hesitation as the market continued to find comfort in its strong export outlook. April lean hogs closed $0.45 higher at $85.67, June lean hogs closed $0.42 higher at $98.17 and July lean hogs closed $0.40 higher at $99.02. The belly was the biggest reason why the carcass price rounded out the day lower (down $8.21) although the picnic closed $3.14 lower, too. Pork cutouts totaled 268.48 loads with 233.79 loads of pork cuts and 34.69 loads of trim. Pork cutout values: Down $1.34, $92.44. Tuesday's slaughter is estimated at 490,000 head -- 4,000 head more than a week ago and 8,000 head more than a year ago. Monday's slaughter is estimated at 490,000 head -- 1,000 head less than a week ago and 13,000 head more than a year ago. The CME lean hog index Feb. 16: Up $0.46, $75.75.
WEDNESDAY'S HOG CALL: Higher. To keep up with these slaughter speeds, packers may have to buy more aggressively in the cash market.
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