Maybe the old time saying of, "high corn, high cattle," hit in a nerve in the cattle contracts Tuesday morning and has since led both the live cattle and feeder cattle contracts higher. While the corn market jumps $0.10 higher per bushel in nearby contracts, the live cattle contracts are confidently trying to regain what Monday lost with gains as much of $2.52 higher, while the feeder cattle and lean hog contracts trade moderately higher. March corn is up 10 1/2 cents per bushel and March soybean meal is up $11.80. The Dow Jones Industrial Average is up 95.70 points and NASDAQ is up 51.99 points.
The live cattle contracts may have traded sharply lower throughout Monday's trade but come Tuesday the contracts are looking for a chance at redemption and are trying to regain what Monday lost. February live cattle are up $2.65 at $114.95, April live cattle are up $2.40 at $118.65 and June live cattle are up $1.42 at $114.00. There's an old wise saying that says, "high corn leads to high cattle," and right now the cattle contracts would like to focus on exactly that. With so many feedlots growing and raising corn, it would really be advantageous for feedlots to see both markets scale higher, but not just the corn market and cattle prices have a lot of catching up to do if that's going to be achieved. The cash cattle market is still quiet without any bids surfacing. Asking prices in the South at noted at $114, but the North has yet to note what they'll be asking this week.
Boxed beef prices are lower: choice down $3.84 ($206.03) and select down $0.77 ($195.76) with a movement of 112 loads (78.42 loads of choice, 14.26 loads of select, 6.55 loads of trim and 13.04 loads of ground beef).
Feeder cattle contracts are enjoying a moderate rally heading into Tuesday's afternoon trade as the market has regained some confidence and traders are willing to invest. January feeders are up $0.95 at $135.90, March feeders are up $0.82 at $136.85 and April feeders are up $0.82 at $138.87. As this week is expecting a large movement of feeder cattle throughout sales, sellers are praying that the market's surge in confidence continues and consequently trickles into the countryside.
The rally throughout the lean hog market is nothing to overlook as the market has been slowly adding more and more positioning to the contracts and these slow, constant gains are adding up. The spot February contracts is facing some slight pressure but other than that the market is continuing to trade modestly higher. February lean hogs are down $0.37 at $70.85, April lean hogs are up $0.40 at $74.02 and June lean hogs are up $0.17 at $84.05.
The projected lean hog index for 1/4/2020 is up $0.85 at $61.47, and the actual index for 12/31/2020 is up $0.55 at $60.62. Hog prices are lower on the National Direct Moring Hog Report, down $0.01 with a weighted average of $55.27, ranging from $43.00 to $55.27 on 7,070 head and a five-day rolling average of $52.20. Pork cutouts total 292.40 loads with 263.40 loads of pork cuts and 29.00 loads of trim. Pork cutout values: up $0.28, $78.05.