GENERAL COMMENTS:
Cattle contracts are continuing to trade higher as traders aren't too concerned with Friday's bearish Cattle on Feed report. The lean hog market is trading mixed but if pork demand remains strong, the market could turn fully higher. March corn is steady and May soybean meal is steady. The Dow Jones Industrial Average is up 28.27 points.
LIVE CATTLE:
The live cattle market is trading fully higher into Monday's noon hour as the complex has elected to shake Friday's Cattle on Feed report and rather focus on the $3 to $4 gain seen last week in the cash market. April live cattle are up $0.67 at $188.57, June live cattle are up $0.22 at $184.10 and August live cattle are up $0.10 at $183.07. It's powerful to see that choice cuts are continuing to trade above $300 as that's been a price point the market has struggled to maintain. The increased price in boxed beef values could incentivize packers to run faster chain speeds, too.
Last week Southern live cattle traded at $183, $3 higher than last week's weighted average, while Northern dressed cattle traded for mostly $292, $4 higher than last week's weighted average. Last week's negotiated cash cattle trade totaled 72,872 head. Of that, 90% (65,774 head) were committed to nearby delivery while the remaining 10% (7,098 head) were committed for deferred delivery.
Boxed beef prices are higher: Choice up $1.45 ($302.06) and select up $1.81 ($288.12) with a movement of 48 loads (28.57 loads of choice, 4.38 loads of select, 8.67 loads of trim and 5.96 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex started the day out slightly lower as traders noted the findings of Friday's Cattle on Feed report, but given the strong fundamental footing of the market, traders have elected to ignore the report's bearish take and move on. March feeders are down $0.42 at $254.15, April feeders are up $0.12 at $260.10 and May feeders are up $0.55 at $262.62. With the strength seen last week in the fat cattle market, feeders are expected to maintain these prices, if not trade even a little higher, as demand continues to be an unwavering force in this year's cattle complex.
LEAN HOGS:
The lean hog complex is trading mixed as the market sees some pushback in its nearby contracts while most of the deferred months are trading slightly higher. April lean hogs are down $0.55 at $86.65, June lean hogs are up $0.55 at $99.92 and July lean hogs are up $0.30 at 100.57. The most encouraging factor that's surfaced in Monday's trade is that pork cutout values are higher to start the week but that is stemming from a $18.99 jump in the belly, which could be an unreliable source given that the cut saw a lot of pressure just last week.
The projected lean hog index for Feb. 23 is up $0.36 at $79.46, and the actual index for Feb. 22 is up $0.32 at $79.10. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.50 with a weighted average price of $70.09, ranging from $69 to $72 on 679 head and a five-day rolling average of $72.56. Pork cutouts total 171.09 loads with 154.24 loads of pork cuts and 16.85 loads of trim. Pork cutout values: Up $2.32, $93.48.
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