GENERAL COMMENTS:
The livestock complex is entering the new week mixed as traders want to advance the cattle contracts again but are somewhat skeptical of doing so without knowing what this week's cash cattle market will do. Meanwhile, the lean hog complex is rallying as it's thankful to see the continued support of strong consumer demand. March corn is down 5 3/4 cents per bushel and March soybean meal is down $4.20. The Dow Jones Industrial Average is up 123.86 points.
LIVE CATTLE:
The live cattle complex is trading mostly mixed into Monday's noon hour as the market wants to continue to thrive and embrace its rallying momentum. Still, on the other hand, traders aren't naive to the fact that the contracts and the cash market are currently trading at price points some never believed they ever would. February live cattle are up $0.87 at $205.65, April live cattle are up $0.05 at $203.10 and June live cattle are up $0.12 at $197.50. This week will be a big one for the cattle complex as later this week the Cattle Inventory report is set to be released which will help market participants determine whether or not any cowherd rebuild build has begun. I don't believe that we will see any signs of that just yet, and if I'm wrong and there has been a small percentage of heifers kept back for breeding -- I still don't believe it will be to a large enough effect to add a significant number of calves into the marketplace. New showlists appear to be mixed, slightly higher in Texas and Nebraska, but lower in Kansas.
Last week Southern live cattle traded at mostly $201 to $202 which is steady to $1.00 higher than the previous week's weighted average, and Northern dressed cattle traded anywhere from $328 to $330 which is $6.00 to $8.00 higher than the previous week's weighted average.
Boxed beef prices are higher: choice up $0.35 ($328.27) and select up $1.73 ($318.02) with a movement of 86 loads (55.40 loads of choice, 23.09 loads of select, zero loads of trim and 7.18 loads of ground beef).
FEEDER CATTLE:
Although the nearby live cattle contracts are trading higher, and it's widely accepted that Friday's Cattle on Feed Report was indeed bullish -- the feeder cattle contracts are trading steady/somewhat lower as the market seems to be apprehensive about trading any higher given that the contracts are already trading at contract high price points. March feeders are down $0.67 at $275.90, April feeders are down $0.20 at $275.90 and May feeders are down $0.30 at $273.10. The complex could regain some strength later this week -- but much of the market's fate is going to rely on the live cattle market's direction, how this week's fed cash cattle market pans out as well as the overall sediment and moral of traders this week.
LEAN HOGS:
The lean hog complex is rallying aggressively this morning as traders have run the contracts back up to resistance levels, most likely because of the continued support in which they're seeing from consumer demand. February lean hogs are up $0.55 at $82.85, April lean hogs are up $2.02 at $90.22 and June lean hogs are up $1.90 at $103.37. And so long as the market continues to see support from consumers, it's likely that traders could attempt to surpass that resistance threshold at $91.00.
The projected lean hog index for 1/24/2025 is up $0.02 at $81.94, and the actual index for 1/23/205 is up $0.01 at $81.92. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.12 with a weighted average price of $78.00, ranging from $77.00 to $79.00 on 471 head and a five-day rolling average of $80.53. Pork cutouts total 172.03 loads with 151.42 loads of pork cuts and 20.61 loads of trim. Pork cutout values: up $1.64, $93.33.
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