GENERAL COMMENTS:
It was a tremendous day for the livestock complex as all three markets were able to close higher and the cash cattle market traded $4.00 to $5.00 higher on top of last week's record-breaking prices. Southern live cattle traded for $200 (up $4.00) and Northern dressed cattle traded for $320 (up $5.00). March corn is up 2 cents per bushel and March soybean meal is down $1.50. The Dow Jones Industrial Average is up 106.84 points.
LIVE CATTLE:
Week after week the fed cash cattle market continues to astonish us all by its wild gains as feedlot managers are skillfully advancing the market for all that it has. Throughout the day Northern dressed cattle traded at mostly $320 which is $5.00 higher than last week's weighted average and again presses the market to new record-breaking prices. And some light live cattle sales were noted in the South at $200 which is $400 higher than last week's weighted average, and also a new all-time high for live cattle prices as well. Thankfully the unwavering fundamental support from the market helped entice traders into advancing the contracts again following Wednesday's minor setback. February live cattle closed $3.90 higher at $197.60, April live cattle closed $2.75 higher at $198.27 and June live cattle closed $2.25 higher at $192.72. Asking prices left for cattle to sell this week remain firm at $200 to $202 in the South and $320 plus in the North.
Thursday's slaughter is estimated at 122,000 head -- 3,000 head less than a week ago and 4,000 head more than a year ago.
Boxed beef prices closed higher: choice up $2.17 ($330.78) and select up $1.46 ($308.35) with a movement of 116 loads (74.05 loads of choice, 14.71 loads of select, 9.13 loads of trim and 18.23 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady with the week's trend. Given that sales have now been reported in both regions, it's likely that prices will remain steady with the week's trend.
FEEDER CATTLE:
What day, what day it was for the feeder cattle complex as the market posted lofty gains -- confidently advancing anywhere from $2.00 to $3.00 higher. I believe today's robust performance was mainly because traders were enthralled with the market's fundamental support upon seeing boxed beef prices trading higher amid another $5.00 advancement in the fed cash cattle sales in the North. Nevertheless, the feeder cattle complex shook the bearish attitude it possessed on Wednesday and closed fully higher Thursday afternoon. January feeders closed $3.65 higher at $269.22, March feeders closed $3.32 higher at $268.30 and April feeders closed $2.92 higher at $269.07. At Kist Livestock Auction in Mandan, North Dakota compared to their last sale three weeks ago feeder steers weighing 500 to 600 pounds sold $12.00 to $15.00 higher; steers weighing 600 to 700 pounds sold $21.00 higher, and steers weighing 700 to 750 pounds sold $9.00 higher. Feeder heifers weighing 500 to 550 pounds sold $17.00 higher, and heifers weighing 650 to 700 pounds traded $22.00 higher. Feeder cattle supply over 600 pounds was 69%. The CME feeder cattle index 1/8/2024: up $2.14, $275.00.
LEAN HOGS:
The lean hog complex successfully closed higher as the market may have finally found some footing in the futures complex after being pressured to trade lower for over a week. February lean hogs closed $2.30 higher at $81.77, April lean hogs closed $2.27 higher at $87.35 and June lean hogs closed $1.72 higher at $100.45. The afternoon carcass price closed slightly lower, which was mainly because of the $2.79 decline in the picnic, but today's movement was noteworthy at 412 loads. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.34 with a weighted average price of $78.85 in 2,087 head. Pork cutouts totaled 412.38 loads with 378.39 loads of pork cuts and 33.99 loads of trim. Pork cutout values: down $0.05, $90.48. Thursday's slaughter is estimated at 488,000 head -- 1,000 head less than a week ago and 9,000 head more than a year ago. The CME lean hog index 1/7/2024: down $0.54, $81.05.
FRIDAY'S HOG CALL: Lower. It's likely that packers have already bought the vast majority of their cash needs for the week.
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