GENERAL COMMENTS:
The livestock complex closed mostly higher Monday afternoon as the cattle contracts continued to rally throughout the day and the lean hog contracts seem to have found some technical footing after being challenged over the past week. No bids or asking prices have surfaced in the cash market. March corn is up 7 cents per bushel and March soybean meal is down $1.30. The Dow Jones Industrial Average is down 25.57 points.
LIVE CATTLE:
The live cattle complex showed its relentless rallying strength again through Monday's market as traders collectively moved the contracts higher through the day's close. Upon seeing the new record high prices that were scored last week in the cash market, traders couldn't seem but to help themselves in advancing the market as bullish tones have completely overtaken the marketplace. February live cattle closed $1.15 higher at $195.20, April live cattle closed $1.27 higher at $197.27 and June live cattle closed $1.55 higher at $192.22. No bids or asking prices have surfaced yet, but it's assumed that cattle will trade higher again this week as packers are still short bought. New showlists appear to be higher in all three major feeding areas. Monday's slaughter is estimated at 109,000 head -- 14,000 head less than a week ago and 6,000 head more than a year ago.
Last week Southern live cattle traded at mostly $196 to $197, which is $4.00 to $5.00 higher than the previous week, and Northern dressed cattle traded at mostly $312 to $315 which is $5.00 to $8.00 higher than the previous week's weighted average. Last week packers bought 85,514 head in the cash market. Of last week's purchase, 77% (65,944 head) were committed to the market's nearby delivery, while the remaining 23% (19,570 head) were committed to the market's deferred delivery.
Boxed beef prices closed higher: choice up $1.86 ($327.10) and select up $6.61 ($303.33) with a movement of 146 loads (82.83 loads of choice, 36.57 loads of select, 5.25 loads of trim and 21.27 loads of ground beef).
TUESDAY'S CATTLE CALL: Higher. It's assumed that cattle will again trade higher this week as feedlot managers will likely just roll over their showlists into the next upcoming week if prices aren't what they desire.
FEEDER CATTLE:
The feeder cattle complex rallied alongside the live cattle market as the industry's bullish outlook is helping to increase flame feeder cattle prices. Some sale barns noted challenges of snow and cold temperatures, but prices were still extremely high as internet action at the barns was strong. January feeders closed $1.47 higher at $266.30, March feeders closed $1.37 higher at $265.55 and April feeders closed $1.80 higher at $266.20. The CME feeder cattle index 1/3/2025: up $2.87, $268.63.
LEAN HOGS:
Believe it or not, the lean hog complex may have found some technical footing in Monday's market as most of the complex closed slightly higher Monday afternoon. The spot February contract was the only contract month to close lower, and that's likely because of the continued pressure that pork cutout values are seeing. February lean hogs closed $1.12 lower at $79.65, April lean hogs closed $0.10 higher at $85.87 and June lean hogs closed $0.70 higher at $99.20. The butt's $3.56 decline combined with the ham's $3.12 drop was enough to pull the carcass price lower, but the belly did close $5.81 higher. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.06 with a weighted average price of $79.65 on 2,701 head. Pork cutouts totaled 413.25 loads with 354.44 loads of pork cuts and 58.80 loads of trim. Pork cutout values: down $1.71, $87.83. Monday's slaughter is estimated at 447,000 head -- 34,000 head less than a week ago and 21,000 head less than a year ago. The CME lean hog index 1/2/2025: down $0.87, $83.12.
TUESDAY'S HOG CALL: Steady/somewhat higher. Packers will likely need to buy some inventory this week and although prices are hit and miss in terms of cutout values.
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