GENERAL COMMENTS:
The livestock complex again walked away with higher prices through the day's end. Wednesday is an important day for the market as the highly awaited Cattle Inventory report will be released. Hog prices averaged $59.40 on the Daily Direct Afternoon Hog Report, with 6,793 head selling and the five-day rolling average now sitting at $56.61. March corn is up 7 1/2 cents per bushel and March soybean meal is up $8.70. The Dow Jones Industrial Average is up 133.86 points.
LIVE CATTLE:
The live cattle complex wasn't as aggressive as the feeder cattle contracts were but its market still was able to close higher which is always a win in cattlemen's eyes. February live cattle closed $0.65 higher at $178.02, April live cattle closed $0.52 higher at $181.75 and June live cattle closed $0.75 higher at $179.22. No cash cattle trade developed throughout the day as everyone seems to be waiting to see what Wednesday's Cattle Inventory report amounts to before they do much business.
Tuesday's slaughter is estimated at 127,000 head -- 2,000 head more than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed lower: Choice down $3.35 ($296.07) and select down $1.77 ($287.05) with a movement of 134 loads (82.01 loads of choice, 32.00 loads of select, 2.89 loads of trim and 17.28 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. It's unlikely that trade will develop much before the afternoon's Cattle Inventory report is released but afterward trade could begin to pick up and once it does, prices are expected to be higher.
FEEDER CATTLE:
Even though nearby corn prices closed $0.06 to $0.08 higher, the feeder cattle complex ran $1 to $2 higher through the day's end. March feeders closed $2.70 higher at $241.32, April feeders closed $2.40 higher at $247.00 and May feeders closed $2.17 higher at $252.22. The market's big rally likely came as traders are anxious to see Wednesday's Cattle Inventory report as it's fully expected to be supportive of the cattle market given that inventories are anticipated to be lighter than a year ago.
At Oklahoma National Stockyard in Oklahoma City, Oklahoma, compared to last week feeder steers and heifers sold $5 to $10 higher and steer and heifer calves traded $10 to $20 higher. Demand was noted to be extremely good for all classes of cattle with very active bidding. Feeder cattle supply over 600 pounds was 61%. The CME feeder cattle index Jan. 29, 2024: up $2.13, $236.28.
LEAN HOGS:
The lean hog complex continues to run higher as the hope of better demand in the months to come is a saving grace to the industry. February lean hogs closed $0.57 higher at $75.85, April lean hogs closed $1.47 higher at $84.90 and June lean hogs closed $1.47 higher at $97.75. The cash hog market finally saw a little better interest as over 6,000 head were sold this afternoon. Unfortunately, the same good news can't be noted about pork cutout prices as the sharp $9.35 decline in the belly pulled carcass prices lower. Pork cutouts totaled 389.58 loads with 338.17 loads of pork cuts and 51.41 loads of trim.
Pork cutout values: Down $0.52, $88.55. Tuesday's slaughter is estimated at 492,000 head -- 13,000 head more than a week ago and 10,000 head more than a year ago. The CME lean hog index Jan. 26, 2024: Up $0.70, $70.60.
WEDNESDAY'S HOG CALL: Steady/somewhat higher. Pork cutout values were slightly lower Tuesday afternoon but at some point, packers are going to have to get more aggressive and procure some hogs.
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