GENERAL COMMENTS:
The livestock complex closed mostly lower Wednesday afternoon as traders weren't as bold as they were earlier in the week. No substantial cash cattle trade developed throughout the day, but packer demand should improve on Thursday. March corn is up 11 3/4 cents per bushel and March soybean meal is up $8.20. The Dow Jones Industrial Average is down 136.83 points.
LIVE CATTLE:
The live cattle complex ended the day lower as traders were skeptical of advancing the contracts any higher without reassurance of what this week's cash cattle trade is going to do. February live cattle closed $1.52 lower at $207.02, April live cattle closed $2.32 lower at $204.95 and June live cattle closed $2.60 lower at $198.75. The fact that boxed beef prices closed lower isn't dramatically alarming as this is a seasonal trend for this time of year that we fully expect as consumer demand weakens slightly until the warmer spring weather comes and grilling is fully underway. No substantial cash cattle trade developed throughout the day, as feedlot managers and packers again go toe-to-toe. Packer demand should improve by Thursday, although it's possible that the week's trade could be delayed until Friday as both parties have different desires for the market's outcome. Asking prices are noted in the South at $210 but are still not established for the North.
Wednesday's slaughter is estimated at 124,000 head -- steady with a week and a year ago.
Boxed beef prices closed lower: choice down $1.91 ($330.54) and select down $1.29 ($320.67) with a movement of 160 loads (127.81 loads of choice, 16.26 loads of select, 4.41 loads of trim and 11.51 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. Given that feedlot managers are still holding out for higher prices, it's likely that cattle will indeed trade steady to somewhat higher this week when trade does develop.
FEEDER CATTLE:
With the live cattle contracts not lending technical support and the nearby corn contracts closing $0.10 to $0.11 higher -- the feeder cattle complex had little option but to close lower. March feeders closed $2.97 lower at $275.27, April feeders closed $3.20 lower at $274.60 and May feeders closed $3.30 lower at $272.97. Today's lower descent doesn't make me question the market's momentum, but rather instead believe that traders pulled the reigns back on the market until they see fundamental reassurance again. At Winter Livestock Auction in La Junta, Colorado compared to last week feeder steers sold $11.00 to $12.00 higher, and feeder heifers traded $5.00 to $9.00 higher with instances of sharply higher across all weight classes. Feeder cattle supply over 600 pounds was 49%. The CME feeder cattle index 1/28/2025: up $0.39, $279.45.
LEAN HOGS:
The lean hog complex had a mixed day, as the contracts were all trading higher ahead of the day's noon hour, but trader support fizzled out as the afternoon traded on. Thankfully, however, the spot April contract was able to maintain its higher position through the day's close, which is significant as traders kept that contract above the recently concurred resistance threshold at $91.00. February lean hogs closed steady at $83.90, April lean hogs closed $0.42 higher at $91.32 and June lean hogs closed $0.70 lower at $103.47. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.83 with a weighted average price of $83.49 on 5,769 head. Pork cutouts total 286.90 loads with 244.77 loads of pork cuts and 42.13 loads of trim. Pork cutout values: up $0.45, $93.31. Wednesday's slaughter is estimated at 483,000 head -- 39,000 head more than a week ago and 5,000 head less than a year ago. The CME lean hog index 1/27/2025: up $0.17, $82.11.
THURSDAY'S HOG CALL: Lower. Given that packers have been aggressive in the cash hog market now for two days in a row, it's likely that the vast majority of their buying is done for this week in the cash market.
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