GENERAL COMMENTS:
The livestock complex closed mixed with the cattle contracts able to maintain their rally through the day's end, but the nearby lean hog contracts are still desperate for demand. No trade developed throughout the cash cattle market. March corn is up 1/4 cent per bushel and March soybean meal is down $3.80. The Dow Jones Industrial Average is down 178.20 points.
LIVE CATTLE:
It was another powerful day for the live cattle complex as the market was well supported by traders' continued efforts as rallying, bullish fundamental tones continue to encourage the market to trade higher and higher. It's too early in the week for any cash cattle trade to have developed, but it's assumed that again this week prices will trade higher as feedlot managers are in a position where if they don't get the prices they yearn for, they can simply roll over their showlists to a new week. February live cattle closed $0.37 higher at $195.57, April live cattle closed $0.50 higher at $197.77 and June live cattle closed $0.55 higher at $192.77. Beef demand has been incredibly strong, but the choice cut did close lower this afternoon which will need to be something we monitor in the upcoming days to see if consumers are waving their white flag saying prices are getting too high, or if today's lower end was just a blip.
Tuesday's slaughter is estimated at 126,000 head -- incomparable to the previous week but 42,000 more than a year ago.
Boxed beef prices closed mixed: choice down $1.31 ($325.79) and select up $2.10 ($305.43) with a movement of 156 loads (97.07 loads of choice, 35.47 loads of select, zero loads of trim and 23.50 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. Given that feedlot managers can simply roll over their showlists is prices aren't what they desire, it's likely that prices will be at least steady again this week if not higher.
FEEDER CATTLE:
The feeder cattle complex continued to trudge higher throughout the entire day as the market is emboldened thanks to the strong buy-in from traders and cattlemen alike that the market's trajectory is undoubtedly higher thanks to this unique situation where supplies are tight, and demand is unwavering. January feeders closed $2.10 higher at $268.40, March feeders closed $2.37 higher at $267.92 and April feeders closed $2.27 higher at $268.47. Even though pockets of the US are facing colder temperatures and more moisture this week, feeder cattle demand in sale barns across the nation hasn't wavered whatsoever -- as evidenced by the CME feeder cattle index. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers and steer calves traded $2.00 to $6.00 higher, feeder heifers sold $3.00 to $4.00 higher and heifer vales sold $2.00 to $7.00 stronger. There were times throughout the sale that feeders and calves brought as much as $15.00 higher. Feeder cattle supply over 600 pounds was 54%. The CME feeder cattle index 1/6/2025: up $3.66, $272.29.
LEAN HOGS:
The lean hog complex rounded out the day mixed as the nearby contracts closed slightly lower but the deferred contracts were able to close mildly higher. February lean hogs closed $0.47 lower at $79.17, April lean hogs closed $0.15 lower at $85.72 and June lean hogs closed $0.15 higher at $99.35. And while it's positive for the day that pork cutout values closed noticeably higher, traders are going to need to see consistent buyer support before they'll feel confident in the demand facet of the market and begin to advance the nearby contracts. Hog prices closed $0.76 lower on the Daily Direct Afternoon Hog Report, with a weighted average price of $78.89 on 2,965 head. Pork cutouts totaled 435.57 loads with 388.04 loads of pork cuts and 47.52 loads of trim. Pork cutout values: up $0.57, $88.40. Tuesday's slaughter is estimated at 487,000 head -- incomparable to the previous week but 112,000 head more than a year ago. The CME feeder cattle index 1/3/2025: down $1.11, $82.01.
WEDNESDAY'S HOG CALL: Steady. It's likely that packers still need to buy some more hogs in the cash market, but they won't likely do so to the degree in which prices would trade substantially higher.
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