GENERAL COMMENTS:
Following the last week of lackluster trade surrounding the Christmas and New Year's Day holiday, traders have quickly moved into the market Tuesday morning as traders are focusing on a new year as well as much more usual volume levels on the first trading session of January. Active gains have flooded into nearby cattle futures with traders focusing on the oversold status of the cattle market. This has helped to push spot month contracts $3 to $4 per cwt higher.
Hog futures are once again actively traded, but moving in the opposite direction of cattle prices. Firm triple digit losses are scattered through the lean hog complex Tuesday morning. The active weakness in grain markets and most other commodity markets is allowing for even more interest to develop in the cattle trade this week.
March corn is down 8 1/4 at $4.63 and March soybean meal is down $8.50 at $377.5. The Dow Jones Industrial Average is up 71.29 at 37,760.83.
LIVE CATTLE:
Live cattle futures have finally once again come alive after the last couple weeks of holiday subdued trade activity at the end of the year. The lack of overall volume and trade interest in the market in the last couple of weeks has been a challenge as fundamental and technical trade indicators were not being focused upon and markets shifted back and forth in a much less consistent pattern.
Following the holiday breaks, renewed buyer support has once again flooded into live cattle futures with spot February futures leading the market higher with gains above $3 per cwt through most of the morning.
Cash cattle activity is quiet Tuesday morning with asking prices and bids still unavailable. With the holiday Monday, activity will be moderately delayed with show list distribution and inventory taking being done Tuesday this week. It is likely that more interest will develop over the next couple of days, but significant activity could easily be delayed until Thursday or Friday.
February live cattle are $3.30 higher at $171.8, April live cattle are $2.08 higher at $174.325, June live cattle are $1.50 higher at $171.55.
Boxed beef prices are mixed: choice down $4.99 ($284.72) and select up $0.07 ($260.40) with a movement of 43.42 loads (29.88 loads of choice, 7.52 loads of select, zero loads of trim and 6.02 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are quickly leading the cattle complex higher Tuesday morning. Although underlying support has started to develop over the last week, the light trade and volume interest in the complex over the holidays has limited overall buyer support and price movements.
With trader interest getting back to normal levels during the first trading day of January and after the holiday break, sharp triple-digit gains are seen in all nearby contracts. Spring contracts are leading the upward shift with gains of $3 to $4 per cwt through the morning, although prices have pulled away from session highs at midday. The strong pressure in grain trade during the morning is also adding to the underlying short-term support in feeder cattle trade, but it is still uncertain if this optimism will hold through the rest of the week.
January feeders are $3.13 higher at $225.425, March feeders are $3.55 higher at $226.65 and April feeders are $3.10 higher at $232.00.
LEAN HOGS:
Lean hog futures have posted moderate to firm losses through Tuesday morning with most commodity markets besides the cattle futures posting moderate to strong losses on the first trading session of January. Given the lack of overall trade volume and sluggish holiday activity over the last week, the hog complex has not totally accounted for the lack of contraction in hog herd sizes seen in the quarterly hogs and pigs report. This may cause some additional early week market softness, as pork values and cash markets continue to remain weak starting out 2024. It is uncertain just how much pressure may be seen, as traders attempt to create support price levels in the coming days.
February lean hogs are $2.58 lower at $65.4, April lean hogs are $2.38 lower at $72.475 and May lean hogs are $1.73 lower at $79.775. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 113.27 loads with 87.98 loads of pork cuts and 25.29 loads of trim. Pork cutout values are up $3.59 at $84.87.
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