Friday, January 5, 2024

Friday Midday Livestock Market Update - Markets Mixed

GENERAL COMMENTS:

Livestock futures markets Friday morning have essentially become a continuation of Thursday's market moves with moderate to firm losses redeveloping in live cattle and feeder cattle trade, while lean hog futures have continued to advance higher. The intensity of the market has slowed at midday Friday, although given early morning market moves, it appears that markets will remain moving in this mixed price direction through the end of the session without a significant shift in outside market factors.

March corn is down 5 1/2 at $4.61 and March soybean meal is down $4.70 at $371.5. The Dow Jones Industrial Average is down 77.25 at 37,363.09.

LIVE CATTLE:

Live cattle futures continued to move moderately lower Friday morning as traders still are trying to find a market equilibrium following strong gains early in the week and only limited cash and beef value support through the last couple of weeks. Front month futures are posting less significant losses than late spring and summer contracts based on the underlying concern that the still moderate to strong supplies over the summer months could limit active price support through much of the year.

Cash cattle markets are still quiet Friday morning, although packer inquiry should improve as the day continues. Bids of $273 per cwt are seen in the North as the softness in futures trade has limited packer offerings at the end of the week. Asking prices remain at $174 and higher live basis in the South and $275 and higher in the North on a dressed basis.

February live cattle are $0.30 lower at $170.825, April live cattle are $0.55 lower at $173.75, June live cattle are $0.80 lower at $170.75. 

Boxed beef prices are higher: choice up $1.98 ($277.88) and select up $0.29 ($259.11) with a movement of 63.43 loads (39.58 loads of choice, 10.74 loads of select, 5.32 loads of trim and 7.79 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures are once again leading the cattle market lower Friday morning. The pressure in nearby futures trade over the past three days has not totally eroded early week gains, but the week is ending on much more of a neutral status than many had hoped and most had expected following the long holiday weekend. Wide variability in outside markets and shifts in grain prices are not only affecting technical buyer activity, but also market fundamentals and cost of production are taking a larger focus than seen over the past few weeks. Triple-digit losses in nearby contracts may hold through the end of the week, which could limit market support early next week.

January feeders are $1.53 lower at $223.15, March feeders are $1.23 lower at $224.425 and April feeders are $1.38 lower at $229.90.

LEAN HOGS:

Lean hog futures are continuing to move higher through Friday morning, but have backed away from session highs at midday. The underlying buyer interest which has started to actively move into what has long been considered an oversold market, is still very evident. But buy orders seem to be thinning at the end of the week, allowing early gains to erode slightly. The ability to continue to build market momentum into the weekend may quickly bring about renewed market interest early next week.

February lean hogs are $0.40 higher at $69.45, April lean hogs are $0.85 higher at $75.80 and May lean hogs are $0.95 higher at $82.75. Hog Prices are lower on the Daily Direct Morning Hog report, down $1.16 with a weighted average of $44.38, ranging from $41.00 to $47.00 on 1,731 head with a five-day rolling average of $44.98. Pork Cutouts totaled 199.34 loads with 183.91 loads of pork cuts and 15.43 loads of trim. Pork cutout values are up $1.30 at $83.37.




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