GENERAL COMMENTS:
The livestock complex has seen better interest flow into its marketplace Friday as traders are driving most of the contracts higher into the noon hour. The cash cattle market still hasn't seen much trade develop in the South, and it looks like today's trade could hold out until the week's bitter end. March corn is up 1 3/4 cents per bushel and March soybean meal is up $0.20. The Dow Jones Industrial Average is up 26.31 points.
LIVE CATTLE:
With emboldened feedlot managers driving the live cattle complex higher, both cash prices and the futures complex is higher at Friday's midday point. There's been a little more trade reported in the Nebraska and Iowa for $257, which is fully steady with the week's business and $2.00 to $3.00 higher than last week's weighted average. Asking prices remain firm in the South at $163-plus and $260 in the North. The market desperately needs to see some more trade develop in the South before the week's end, as only a handful of cattle have traded thus far in the South for $161, which is $1.00 higher than last week's weighted average. With both the futures contracts higher and midday boxed beef prices higher, feedlots should be able to drive the market to their full asking price if they remain patient. April live cattle are up $1.07 at $165.15, June live cattle are $0.70 at $160.42 and August live cattle are up $0.40 at $159.17.
Boxed beef prices are higher: choice up $1.34 ($280.89) and select up $4.01 ($266.65) with a movement of 42 loads (26.94 loads of choice, 5.88 loads of select, zero loads of trim and 9.00 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is in limbo as the market posts modest gains in its nearby contracts, but the deferred months are regressing as they anxiously note the mild gains in the corn complex. March feeders are up $0.57 at $186.80, April feeders are up $0.27 at $190.87 and May feeders are up $0.10 at $194.72. Helping the feeder cattle market more than anything right now is the fact that, once again this week, cash cattle prices are trending higher. In order for feedlots to justifiably pay the incredibly high input prices that come with Friday's cattle feeding industry, they need to see higher fat cattle prices and higher prices becoming the market's norm.
LEAN HOGS:
The lean hog complex has had a back-and-forth week as the market saw tremendous support early on but struggled through the week's midpoint. Come Friday, the market is again trading higher as traders see opportunity in the livestock market today. April lean hogs are up $0.70 at $86.47, June lean hogs are up $0.55 at $103.62 and July lean hogs are up $0.67 at $105.55. Not that it means that the afternoon's pork cutout value will close lower, but Friday's midday cutout carcass is lower with significant day over day declines seen in the ham (down $4.48) and the picnic (down $1.48).
The projected lean hog index for Feb. 16 is up $0.24 at $76.09, and the actual index for Feb. 15 is up $0.23 at $75.85. Hog prices on the Daily Direct National Hog Report average $76.19 ranging from $69.00 to $78.00 on 4,185 head and a five-day rolling average of $75.35. Pork cutouts total 122.93 loads with 113.92 loads of pork cuts and 9.00 loads of trim. Pork cutout values: down $1.08, $81.98.
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