GENERAL COMMENTS:
The livestock complex is again trading mixed as the cattle sector is met with ample support, but the lean hog market continues to venture lower and lower. It will be especially interesting to see what the cash cattle market pans out this week as packers will be reluctant to pay more money on top of last week's steep advancement, but if they're still short bought, they could be forced into paying whatever feedlot managers ask. March corn is up 7 1/4 cents per bushel and March soybean meal is up $0.50. The Dow Jones Industrial Average is up 290.43 points.
LIVE CATTLE:
The live cattle complex is continuing to grind higher and higher as the market is flooded with ample support. Between last week's higher charge in the cash cattle market, combined with the continued support of strong beef, demand already this week -- the market is seeming confident in its continuation of a higher trend. February live cattle are up $1.15 at $195.20, April live cattle are up $1.10 at $197.10 and June live cattle are up $1.10 at $191.77. It will be especially interesting to see how the dynamics of this week's cash cattle market pan out as packers will loathe the idea of paying more money for cattle yet again, but on the same hand, it seems as though they're short bought which would somewhat force them into paying up again this week.
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.
Boxed beef prices are higher: choice up $2.00 ($327.24) and select up $4.40 ($301.12) with a movement of 57 loads (21.36 loads of choice, 21.95 loads of select, 3.41 loads of trim and 10.13 loads of ground beef).
FEEDER CATTLE:
Although the feeder cattle complex may have closed mostly lower Friday afternoon, the market has jumped back into gear Monday morning as higher tones summarize the market's theme Monday morning. January feeders are up $1.60 at $266.42, March feeders are up $1.60 at $265.77 and April feeders are up $1.75 at $266.15. It's likely that strong feeder cattle demand is again the market's tone this week in sale barns across the country as buyers have order to fill following the long holiday break.
LEAN HOGS:
The cattle complex may be frolicking higher as support is ample, but the lean hog complex can't seem to gain footing in the marketplace no matter where it looks. With traders skeptical of consumer demand, and again Monday morning seeing lower pork cutout values, it's no wonder why the market is yet again trailing lower. February lean hogs are down $1.12 at $79.67, April lean hogs are down $0.37 at $85.42 and June lean hogs are down $0.07 at $98.42.
The projected lean hog index for 1/3/2024 is down $1.11 at $82.01 and the actual index for 1/2/2024 is down $0.87 at $83.12. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.37 with a weighted average price of $78.32, ranging from $68.00 to $79.00 on 433 head and a five-day rolling average of $79.57. Pork cutouts total 244.61 loads with 207.57 loads of pork cuts and 37.04 loads of trim. Pork cutout values: down $1.57, $87.97.
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