Tuesday, February 13, 2024

Tuesday Midday Livestock Market Update - Mixed Trade Dominates Complex

GENERAL COMMENTS:

It's a quiet day in livestock land as the contracts are trading lower and not much has developed thus far through Tuesday's market. No cash cattle trade has developed and trade is likely delayed until after Wednesday sometime. March corn is up 3/4 cent per bushel and March soybean meal is down $3.10. The Dow Jones Industrial Average is down 477.03 points.

LIVE CATTLE:

With midday boxed beef prices lower, the live cattle complex is trading lower and will most likely round out the day that way. It's too early in the week for any cash cattle trade to have developed and bids and asking price remain elusive at this point. Cash cattle prices are likely to be steady this week as last week's surge was significantly higher. February live cattle are down $0.35 at $183.90, April live cattle are down $0.47 at $185.45 and June live cattle are down $0.70 at $182.82.

Boxed beef prices are lower: Choice down $0.83 ($293.25) and select down $0.07 ($286.95) with a movement of 64 loads (34.24 loads of choice, 14.02 loads of select, 4.05 loads of trim and 11.25 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is trading mildly lower as the market looks for support but hasn't found much interest in the morning's futures complex. The market's fundamentals remain extremely strong and feeder cattle demand in the countryside continues to show strong buyer interest as sale reports again this week are reporting gains. Traders have yet to find stable footing in this week's market and it could be they remain cautious until they see what the cash cattle market trade at. March feeders are down $0.32 at $248.50, April feeders are down $0.95 at $252.27 and May feeders are down $0.82 at $0.82 at $256.02.

LEAN HOGS:

Hog prices were trading fully higher at Tuesday's start, but given the hesitant nature of the cattle complex, traders are letting the lean hog contracts trade slightly lower, too. April lean hogs are down $0.22 at $80.90, June lean hogs are down $0.47 at $94.40 and July lean hogs are down $0.25 at $95.90. The market will likely continue to trade mostly steady through the day's afternoon as the market struggles to find substantial support to justify trading higher. Thankfully, the market has established a support plane at $81, which will hopefully hold true and keep the market from trading much lower.

The projected lean hog index for Feb. 12 is up $0.41 at $74.11 and the actual index for Feb. 9 is up $0.10 at $73.70. Hog prices on the Daily Direct Morning Hog Report average $68.06, ranging from $67 to $69 on 1,345 head and a five-day rolling average of $66.21. Pork cutouts total 211.33 loads with 186.84 loads of pork cuts and 24.49 loads of trim. Pork cutout values: Down $1.29, $87.25.




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