GENERAL COMMENTS:
Lean hog and feeder cattle contracts are seeing mild support while the live cattle complex hangs back to see what the week's cash cattle trade amounts to. There's a dressed bid offered in the North, but at this point, no feedlots have elected to sell cattle yet. March corn is down 4 cents per bushel and March soybean meal is down $8.50. The Dow Jones Industrial Average is up 154.88 points.
LIVE CATTLE:
After witnessing Tuesday's brisk upward run, the live cattle market has paused its rally as it waits to see what develops in this week's cash market. The nearby contracts are only trading mildly lower with midday boxed beef prices being supportive. The market could trade higher later this week but, in the meantime, it's waiting to see what else develops from the market's fundamentals. There is a bid offered in Nebraska at $280 dressed, but feedlots have yet to jump on the offer. Asking prices in the South are noted at $182-plus and remain unestablished still in the North. February live cattle are down $0.60 at $182.40, April live cattle are down $0.72 at $185.35 and June live cattle are down $0.42 at $182.70.
Boxed beef prices are higher: Choice up $1.39 ($295.46) and select up $0.35 ($284.95) with a movement of 94 loads (54.84 loads of choice, 20.82 loads of select, 6.89 loads of select, 11.03 loads of ground beef).
FEEDER CATTLE:
With midday corn prices tipping $0.03 to $0.04 lower and the cash cattle market expected to trade at least steady with last week's weighted averages if not higher, it's not surprising to find feeder cattle contracts trading mostly higher. March feeders are down $0.17 at $246.50, April feeders are up $0.12 at $251.82 and May feeders are up $0.30 at $256.62. The market isn't blazing full-steam ahead higher as it's somewhat cautious given that the live cattle complex is trading lower. If cash prices do indeed trade higher this week, it's expected the live cattle market will turn and trade higher as well.
LEAN HOGS:
After trading lower throughout the earlier part of the week, the lean hog complex has again found support as it's now trading higher. Given that the cash hog market has only seen a thin volume traded this week and pork cutout values are down again, one has to wonder if today's support establishes a new plane in the market as the market's fundamentals aren't necessarily helping boost prices higher. February lean hogs are up $0.25 at $73.72, April lean hogs are up $0.47 at $81.72 and June lean hogs are up $0.70 at $95.90.
The projected lean hog index for Feb. 6 is up $0.16 at $74.02, and the actual index for Feb. 5 is up $0.30 at $73.86. Hog prices on the Daily Direct Morning Hog Report average $65.88, ranging from $69 to $68.50 on 1,922 head and a five-day rolling average of $64.18. Pork cutouts total 175.72 loads with 144.95 loads of pork cuts and 30.78 loads of trim. Pork cutout values: Down $2.67, $83.56.
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