GENERAL COMMENTS:
The livestock complex is off to a weaker start as traders seem skeptical of advancing the contracts much more unless fundamental support develops later in the week. With packers not able to get many cattle bought last week, it will be interesting to see if the cash cattle market can keep its upward trend again this week. March corn is up 3 cents per bushel and January soybean meal is up $2.00. The Dow Jones Industrial Average is down 39.60 points.
LIVE CATTLE:
The live cattle complex is cautiously tiptoeing into this new week as the market trails lower into Monday's noon hour. Last week the market saw tremendous support as the futures complex made lofty gains early in the week, and then later in the week, the cash cattle complex traded substantially higher. But as traders confront this week's market, they seem hesitant as they question how much more fundamental support will arise this week and if the futures complex has more immediate upside potential. December live cattle are down $1.65 at $192.00, February live cattle are down $2.00 at $190.00 and April live cattle are down $1.35 at $191.65. Just as a reminder, the monthly Cattle on Feed report will be released this upcoming Friday.
Last week Southern live cattle traded from mostly $191 to $192, which is steady to $2.00 higher than the previous week's weighted average. Northern dressed cattle traded anywhere from $295 to $311, but the majority of the business was done at $302 to $305 which is $5.00 to $8.00 higher than the previous week's weighted average.
Boxed beef prices are mixed: choice down $0.72 ($315.67) and select up $5.71 ($289.57) with a movement of 53 loads (30.25 loads of choice, 7.41 loads of select, 7.87 loads of trim and 7.41 loads of ground beef).
FEEDER CATTLE:
Without the help of the live cattle complex trading higher, the feeder cattle market is also trading modestly lower into Monday's noon hour. Yes, demand is still utterly incredible in the countryside for both feeders and calves, but the market is skeptical from a technical sense at the week's start. January feeders are down $2.10 at $255.57, March feeders are down $1.35 at $256.32 and April feeders are down $1.32 at $257.20.
LEAN HOGS:
The lean hog complex is trailing in the same downward direction that the cattle contracts are this morning as traders simply seem lethargic. February lean hogs are down $2.12 at $83.47, April lean hogs are down $1.42 at $88.32 and June lean hogs are down $0.82 at $100.10. And while pork demand may be supportive this morning as the carcass price is higher, traders are going to need to see more follow-through from buyers before they believe the change in price direction as last week's prices were mostly lower.
The projected lean hog index is delayed from the source. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.38 with a weighted average of price of $79.74, ranging from $77.00 to $80.00 on 1,122 head and a five-day rolling average of $80.21. Pork cutouts total 228.17 loads with 196.27 loads of pork cuts and 31.90 loads of trim. Pork cutout values: up $2.47, $97.08.
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