GENERAL COMMENTS:
The livestock complex is starting this week out on a strong note as most of the contracts are trading higher. It's only the spot live cattle contract that's lower and that's likely because packers have ratcheted back processing speeds. March corn is up 2 1/2 cents per bushel and March soybean meal is up $3.50. The Dow Jones Industrial Average is down 137.34 points.
LIVE CATTLE:
Besides the spot February 2024 and April 2024 contracts, the live cattle market is trading higher like the lean hog and feeder cattle contracts. The nearby contracts could be worried about slaughter speeds as packers have reduced throughput as a way to hopefully keep the cash cattle market from advancing uncontrollably. February live cattle are down $0.57 at $184.20, April live cattle are down $0.37 at $187.17 and June live cattle are up $0.22 at $183.00. The cash cattle market hasn't seen any interest yet and it's likely trade could be delayed until after Wednesday.
Last week's negotiated cash cattle trade totaled 88,336 head. Of that 78% (68,700 head) were committed to the nearby delivery, while the remaining 22% (19,636 head) were committed to the deferred delivery.
Boxed beef prices are mixed: choice down $0.21 ($296.88) and select up $2.76 ($290.16) with a movement of 61 loads (35.42 loads of choice, 6.55 loads of select, 7.62 loads of trim and 11.07 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading higher as the market continues to be encouraged by its strong fundamental position. With supplies of feeder cattle and calves incredibly low, 2024 has a bright outlook ahead as demand should keep prices record high. March feeders are up $0.10 at $251.12, April feeders are up $1.42 at $254.87 and May feeders are up$1.95 at $257.57.
LEAN HOGS:
The lean hog market is keeping with its upward trend as the market comfortably pushes a moderate rally despite pork cutout values being lower and there being no cash hog market to talk about yet. April lean hogs are up $0.67 at $85.90, June lean hogs are up $0.50 at $98.25 and July lean hogs are up $0.42 at $99.05. So long as midweek pork demand picks up, the market may be able to sustain these levels, but follow-through support will be essential.
The projected CME Lean Hog Index for 2/19/2024 is up $1.05 at $76.80, and the actual index for 2/16/2024 is up $0.46 at $75.75. Hog prices are unavailable on the Daily Direct Morning Hog report because no hogs have traded yet. Yup, you read that correctly, this morning's report plainly displayed that zero hogs have traded in the cash market Tuesday morning. It makes it pretty hard to report on the market when there aren't hogs traded in the open cash market. We can see, however, that the market's five-day rolling average now sits at $68.22. Pork cutouts total 162.66 loads with 142.08 loads of pork cuts and 20.59 loads of trim. Pork cutout values: down $1.46, $92.32.
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