GENERAL COMMENTS:
It was a mixed day for the livestock complex as traders were apprehensive to overly support the livestock contracts, which ultimately led to the market's mostly lower close. A small movement of cattle was noted in the South where live cattle traded for $201, which is steady with last week's weighted average. March corn is up 5 3/4 cents per bushel and March soybean meal is up $13.80. The Dow Jones Industrial Average is up 537.98 points.
LIVE CATTLE:
The live cattle complex was mixed as the nearby contracts closed mostly higher, but the deferred months closed mostly lower. More than anything, uncertainty seemed to take hold of the live cattle complex throughout Tuesday's trade as the market remains teetering as to which way the week's prices will trend. It's not helpful to see choice cuts closing slightly lower, and to have seen little movement in this week's cash trade already. Some live cattle sales were reported in the South this afternoon at $201, which is fully steady with last week's weighted average. February live cattle closed $0.30 higher, at $197.05; April live cattle closed $0.17 lower at $197.32; and June live cattle closed $0.45 higher at $192.65. Last, but not least, the market's technical pressure at $199 remains too daunting for traders to wrestle with for the time being. Packer interest should again improve on Wednesday and it's likely that prices will at least trend steady, as we've already seen some trade develop at that price point -- but Northern feedlot managers may still be able to push the envelope and get cattle sold for more money.
Tuesday's slaughter is estimated at 124,000 head -- 1,000 head fewer than a week ago and steady with a year ago.
Boxed beef prices closed mixed: choice was down $1.11 ($332.05) and select up $0.11 ($319.55), with a movement of 152 loads (100.45 loads of choice, 29.33 loads of select, 7.82 loads of trim and 14.79 loads of ground beef).
WEDNEDSAY'S CATTLE CALL: Steady to $1 higher. Although some light trade has already developed in the South, the North may still be able to move dressed prices higher.
FEEDER CATTLE:
With the nearby corn contracts closing $0.05 to $0.06 higher, and the live cattle complex seeming uncertain of its direction, it comes as no surprise that the feeder cattle contracts rounded out the day mostly lower. March feeders closed $0.80 lower at $267.25, April feeders closed $1.65 lower at $266.47, and May feeders closed $2.20 lower at $265.05. It's likely that the feeder cattle complex could trade in a steady or somewhat lower trend as the market's resistance at $270 is significant. Some early sales already having been noted in the fed cash cattle complex at steady money -- it's unlikely that fundamental support from the live cattle/cash cattle market is momentous. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers over 700 pounds sold $2 to $4 lower, and steers under 700 pounds traded $1 to $4 higher. Feeder heifers traded steady to $5 lower. Steer and heifer calves sold steady to $4 higher. The sale report did note that both quality and condition contributed to a very up-and-down market trend. Feeder cattle supply over 600 pounds was 57%. The CME feeder cattle index 1/20/2025: down $0.90, $278.02.
LEAN HOGS:
It was another plummeting day for the vast majority of the lean hog contracts. Most of the nearby contracts closed more than $1 lower, but some of the furthest deferred months were able to maintain a slightly higher position through the day's close. Aside from the technical pressure, which seems the biggest reason why the contracts traded lower, it was also disappointing for traders to see another drop in pork cutout values. Today's lower end in the carcass price isn't a sharp drop in any one single cut, as every major cut closed lower other than the belly, which closed higher this afternoon. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.58 with a weighted average price of $79.75 on 3,966 head. Pork cutouts totaled 381.20 loads with 322.54 loads of pork cuts and 58.66 loads of trim. Pork cutout values: down $1.49, $90.82. Tuesday's slaughter is estimated at 489,000 head -- 12,000 head more than a week ago and 10,000 head more than a year ago. The CME lean hog index 1/17/2025: down $0.12, $81.40.
WEDNEDSAY'S HOG CALL: Steady/somewhat higher. Packers end up paying slightly more in Tuesday's cash hog market, but they only bought 3,966 head, which won't fill their needs for the entire week.
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