GENERAL COMMENTS:
The livestock complex is again trading mixed as the cattle contracts continue to etch higher and higher, and everyone is collectively seeing the same writing on the wall -- a bullish cattle market trajectory for 2025 as supplies are low and demand is high. Meanwhile the lean hog complex is enduring a disappointing day as once again the contracts are trading lower. March corn is down 2 1/4 cents per bushel and March soybean meal is down $6.10. The Dow Jones Industrial Average is down 56.62 points.
LIVE CATTLE:
The momentum behind the live cattle complex's rally is unwavering as the market continues to grind higher, day in and day out. With the help of stronger boxed beef prices, the live cattle complex is confidently charging higher even though the market has yet to see what cash cattle prices are going to do this week. It's assumed that with packers still being short bought prices will again be higher this week, but as always, time will tell. No bids or asking prices are noted yet, and trade will likely be delayed until Thursday or Friday again this week as feedlot managers are content to wait as long as they need until packers pay the prices they seek. February live cattle are up $0.57 at $195.77, April live cattle are up $0.52 at $197.80 and June live cattle are up $0.35 at $192.55.
Boxed beef prices are higher: choice up $2.56 ($329.66) and select up $0.74 ($304.07) with a movement of 71 loads (40.50 loads of choice, 16.50 loads of select, zero loads of trim and 14.43 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is leading the cattle complex's charge this morning as the market initially gapped higher at Tuesday's start and hasn't looked back since. January feeders are up $1.25 at $267.55, March feeders are up $1.55 at $267.05 and April feeders are up $1.37 at $267.57. Demand has been incredible already this week in the countryside as buyers know that while it may cost them some money to feed grass calves until this spring, the closer we get to turn-out season the more expensive those types of cattle will become.
LEAN HOGS:
The lean hog complex has unfortunately had another disappointing day thus far as the market hasn't been able to sustain Monday's close. As the market continues to dwindle lower, traders and hog producers alike are hoping that demand will surface at some point and put another bottom in the market for the near term, but at this point that hope hasn't come to fruition as market enthusiasts need higher prices and long for consistency. February lean hogs are down $0.80 at $78.85, April lean hogs are down $0.55 at $85.32 and June lean hogs are down $0.30 at $98.90.
The projected lean hog index for 1/6/2025 is down $0.42 at $81.59, and the actual index for 1/3/2025 is down $1.11 at $82.01. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 190 head have traded and that the market's five-day rolling average now sits at $79.56. Pork cutouts total 253.22 loads with 227.40 loads of pork cuts and 25.82 loads of trim. Pork cutout values: up $1.40, $89.23.
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