GENERAL COMMENTS:
It's another prosperous rallying day for the livestock complex as all three markets are trading higher into Tuesday's noon hour. Still no substantial cash cattle trade has developed but asking prices are now noted in the South at $208 to $210. March corn is up 5 1/2 cents per bushel and March soybean meal is up $0.20. The Dow Jones Industrial Average is up 109.53 points.
LIVE CATTLE:
The live cattle complex is continuing to rally aggressively as traders' support is simply unwavering at this point. Even though the contracts continue to press into new, life of the contract high price points, traders are actively advancing the market without question as they continue to see the validity and merit of the market's long-term bullish trajectory. February live cattle are up $2.72 at $208.40, April live cattle are up $3.45 at $207.32 and June live cattle are up $3.02 at $201.22. Asking prices are noted at $208 to $210 in the South but are still not established in the North. It's assumed that cattle will trade steady/somewhat higher again this week, but trade will likely be delayed until Wednesday or later.
Boxed beef prices are higher: choice up $2.46 ($322.54) and select up $2.36 ($322.91) with a movement of 86 loads (48.97 loads of choice, 13.36 loads of select, 14.14 loads of trim and 9.51 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex was leery of being too overly ambitious through Monday's market, but low and behold, once traders saw the aggressive surge of the live cattle contracts, the feeder cattle market began to rally as well. March feeders are up $2.65 at $277.95, April feeders are up $3.05 at $277.47 and May feeders are up $3.20 at $276.00. With the expectation that fed cattle prices will trade steady to somewhat higher again this week, the feeder cattle market could likely see all the support it needs throughout the rest of the week so long as the market's fundamentals prevail.
LEAN HOGS:
Traders are again up against resistance levels as they continue to see the fundamental support of stronger pork cutout values and are eager to advance the contracts. But now that the nearby contracts are at resistance levels, traders are going to have to decide if the market's momentum and support are strong enough to justify trading above the resistance at $91.00 in the spot April contract. Traders will continue to closely monitor pork demand in the days ahead as demand is crucial right now as they weigh their technical options.
The projected lean hog index for 1/27/2025 is up $0.17 at $82.11, and the actual index for 1/24/2025 is up $0.02 at $81.94. Hog prices are higher on the Daily Direct Morning Hog Report, up $5.34 with a weighted average price of $83.34, ranging from $77.00 to $85.00 on 1,095 head and a five-day rolling average of $81.23. Pork cutouts total 205.05 loads with 170.55 loads of pork cuts and 34.50 loads of trim. Pork cutout values: up $0.49, $93.65.
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