GENERAL COMMENTS:
Cattle futures have turned higher as the corn and soybean contracts traipse lower. As feedlots aspire to capture higher prices in this week's cash cattle market, the timing of the futures market's modest rally is nearly perfect. March corn is down 7 1/4 cents per bushel and March soybean meal is down $1.00. The Dow Jones Industrial Average is up 299.33 points and NASDAQ is up 131.20 points.
LIVE CATTLE:
Live cattle futures are rallying on the heels of Tuesday's bullish feeder cattle market. While grain prices shouldn't really affect the live cattle market (given that the cattle are at the end of their rope) they do, and so the wane in corn and soybean prices give the market an opportunity to rally modestly. February live cattle are up $0.60 at $142.42, April live cattle are steady at $146.40 and June live cattle are up $0.32 at $141.42. The big kicker of this week will be throughput and cash cattle trade. The more aggressive throughput is the better chance feedlots stand at pushing the cash cattle market higher in the weeks to come. The cash cattle market hasn't seen any interest and it's not likely trade develops until Wednesday or later. Asking prices at $142 to $143 in the South; prices have yet to be disclosed in the North. The board's positive display of live cattle prices is only helping feedlots grow more and more confident in their quest for higher cash prices this week.
Boxed beef prices are mixed: choice up $0.29 ($279.25) and select down $0.21 ($274.83) with a movement of 71 loads (49.34 loads of choice, 5.36 loads of select, zero loads of trim and 16.05 loads of ground beef).
FEEDER CATTLE:
The regression in corn and soybean prices came as a pleasant sigh of relief for the feeder cattle contracts. While feed prices are still much higher than what feedlots have become accustomed to paying, any break in input prices is a good sign for feeders. March feeders are up $2.15 at $161.17, April feeders are up $1.67 at $171.97 and May feeders are up $1.42 at $176.15. The feeder cattle contracts are posting a strong rally, and if cash cattle can manage to trade cattle steady to somewhat higher this week, the market really stands of chance at keeping its steam. Receipts are expected to be light throughout sale barns as producers have largely already marketed their calves and feeders, and most of the country is thinking about getting cows ready for calving.
LEAN HOGS:
After crumbling lower throughout Monday, cash hog prices have found some support and, amid a higher midday pork cutout value, the lean hog contracts are back to take on new highs. April lean hogs are up $2.15 at $103.45, June lean hogs are up $2.10 at $112.47 and July lean hogs are up $1.47 at $111.17. The market knows supplies of market-ready hogs are thin, but Wednesday's WASDE report could give a more specific look as to how thin supplies are anticipated to get. If that is the case, then the hog market will be able to tuck another bullish factor into its already optimistic hat.
The projected CME Lean Hog Index for 2/7/2022 is up $0.75 at $86.62, and the actual index for 2/4/2022 is up $1.57 at $85.87. Hog prices are higher on the National Direct Morning Hog Report, up $4.75 with a weighted average of $76.58, ranging from $71.00 to $91.00 on 3,610 head and a five-day rolling average of $80.74. Pork cutouts total 174.76 loads with 157.86 loads of pork cuts and 16.90 loads of trim. Pork cutout values: up $1.81, $100.00.
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