GENERAL COMMENTS:
Aside from the live cattle complex, both the feeder cattle and lean hog markets are trading lower into Friday's noon hour. No new cash cattle trade has developed, and it looks like the bulk of this week's trade is essentially done with. March corn is up 7 1/2 cents per bushel and March soybean meal is up $3.20. The Dow Jones Industrial Average is up 470.79 points.
LIVE CATTLE:
After enduring some pressure through Thursday's end, the live cattle complex is back to trading higher. The market is relieved not to be up against resistance pressure today and is thankful to see the continued support of stronger boxed beef prices. February live cattle are up $0.42 at $197.02, April live cattle closed $0.17 higher at $197.85 and June live cattle are up $0.62 at $192.60. No more cash cattle sales have been noted and although it's likely that some light movement may happen here or there in terms of clean-up sales, it's looking like the vast majority of the trade is done for this week. Asking prices for cattle left to sell are $202 plus in the South and $323 plus in the North. So far this week Southern live cattle have traded at mostly $201 which is steady to $1.00 higher than last week's weighted average, and Northern dressed cattle have sold at mostly $322 which is $2.00 higher than last week's weighted average.
Boxed beef prices are higher: choice up $0.41 ($333.82) and select up $2.07 ($321.45) with a movement of 83 loads (57.66 loads of choice, 15.25 loads of select, 3.02 loads of trim and 7.47 loads of ground beef).
FEEDER CATTLE:
Although you'd think that the support stemming from the live cattle complex in terms of higher trade on the futures board, stronger boxed beef prices and higher trends in this week's fed cash cattle market would be enough to encourage the feeder cattle complex to trade higher all the while demand in the countryside remains red-hot for feeder cattle -- the market seems to be gawking at the corn market's rally which is likely why most of the feeder cattle contracts are trading lower. January feeders are down $0.25 at $273.20, March feeders are up $0.35 at $268.07 and April feeders are mostly steady at $268.20. And given that traders are skeptical at this point in the day, it's unlikely that they'll grow much more supportive of the feeder cattle complex ahead of the day's close.
LEAN HOGS:
Even the lean hog complex is trading lower as traders have seemed to take on a skeptical approach to Friday's market in the entire livestock complex. It is positive however to still see pork cutout values trading higher as demand has partially been credited to the market's recent rally. February lean hogs are down $1.05 at $81.25, April lean hogs are down $2.00 at $88.55 and June lean hogs are down $1.52 at $102.40.
The projected lean hog index for 1/16/2025 is up $0.09 at $81.28, and the actual index for 1/15/2025 is up $0.09 at $81.19. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.36 with a weighted average price of $78.08, ranging from $77.00 to $81.00 on 661 head and a five-day rolling average of $79.63. Pork cutouts total 188.37 loads with 169.45 loads of pork cuts and 18.93 loads of trim. Pork cutout values: up $1.30, $91.69.
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