GENERAL COMMENTS:
The cattle complex is having a tough go thus far in Wednesday's market as traders backpedal in response to the Consumer Price Index coming in at 3.1% -- which is the highest level the index has been at since mid-November. This unfortunately means that it's unlikely that any interest rate cuts will come any time soon. March corn is down 7 3/4 cents per bushel and March soybean meal is up $0.60. The Dow Jones Industrial Average is up 5.18 points.
LIVE CATTLE:
The live cattle complex is ducking and running its way lower through Wednesday's market as traders backpedal after seeing the Consumer Price Index report. February live cattle are down $1.00 at $182.75, April live cattle are down $1.60 at $183.55 and June live cattle are down $1.80 at $180.75. The market's downturn likely means that steady cash cattle prices are the absolute best that the market could see this week -- but still no trade has developed. Asking prices are noted in the South at $184 but remain elusive in the North. Trade will likely be delayed until sometime after Wednesday.
Boxed beef prices are mixed: choice up $0.18 ($292.45) and select down $1.18 ($284.12) with a movement of 53 loads (38.11 loads of choice, 6.29 loads of select, zero loads of choice, and 8.92 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is enduring the most pressure out of all the livestock contracts today. One would like to think that the corn market's $0.06 to $0.07 decrease would help offset the bearish news of the CPI being at 3.1% -- but unfortunately, that doesn't seem to be the case today. March feeders are down $3.20 at $244.80, April feeders are down $3.37 at $248.50 and May feeders are down $3.42 at $252.90. Buyers are already paying high prices for feeder cattle and calves, and the fact that interest rates won't likely be reduced any time soon doesn't sit well with cattlemen or traders this morning.
LEAN HOGS:
While the cattle complex melts lower, the lean hog complex is enjoying a refreshing rally as the market trades $2.00 to $3.00 higher in its nearby contracts. April lean hogs are up $3.25 at $84.32, June lean hogs are up $2.37 at $97.07 and July lean hogs are up $1.82 at $98.00. Sure, the market has built some support around the $81.00 threshold, but Wednesday's aggressive advancement seems a little over the top given that pork cutout values are lower at midday and that cash hog volumes are still thin. Maybe the market is anticipating a strong export report coming on Thursday? Or maybe the traders are just preparing for the February 2024 contract to expire later this afternoon – either way, thus far it's been a dynamite day for the hog complex.
The projected lean hog index for 2/13/2024 is up $0.48 at $74.60, and the actual index for 2/12/2024 is up $0.41 at $74.11. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.03 with a weighted average price of $66.03, ranging from $64.00 to $69.00 on 1,123 head and a five-day rolling average of $66.33. Pork cutouts total 195.35 loads with 155.18 loads of pork cuts and 40.17 loads of trim. Pork cutout values: down $1.36, $85.80.
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