GENERAL COMMENTS:
The livestock complex has seen a bit of change in morale as Wednesday's trade plays out as the cattle contracts are now trading lower while the hogs trade higher. The lower dip in the cattle complex is likely stemming from the fact that traders want to hold up the market's powerful roll until they're reassured that this week's cash cattle market is indeed going to trade higher. March corn is down 3 1/4 cents per bushel and March soybean meal is down $0.90. The Dow Jones Industrial Average is down 100.45 points.
LIVE CATTLE:
The live cattle complex is trading gingerly into Wednesday's noon hour as the market is seeming to hold its breath until developments surface for the week's cash cattle trade. It's believed that again this week cash cattle prices will trade higher -- but traders want to see that assumption come to fruition before they advance the contracts much more. Asking prices are noted in Kansas at $200, but otherwise, there are no other asking prices listed, and no bids have surfaced. Trade will likely be delayed until Thursday or Friday as feedlot managers aren't in any rush to trade cattle. Tuesday afternoon the choice cut did close lower, and so it's comforting to note that prices are again higher this morning, but prices will need to continue to be monitored in this afternoon's close. February live cattle are up $0.07 at $195.62, April live cattle are down $0.12 at $197.70 and June live cattle are down $0.90 at $191.87.
Boxed beef prices are higher: choice up $1.59 ($327.38) and select up $0.97 ($306.40) with a movement of 87 loads (54.47 loads of choice, 10.94 loads of select, 9.07 loads of trim and 12.26 loads of ground beef).
FEEDER CATTLE:
Without the technical support of the live cattle complex, the feeder cattle contracts are also trading lower. But todays lower descend is solely a technical decision as demand is the countryside remains red-hot and is continuing to be evidenced by the CME feeder cattle index which closed $3.66 higher Tuesday afternoon at $272.29. January feeders are down $2.35 at $266.05, March feeders are down $2.57 at $265.27 and April feeders are down $2.30 at $266.17.
LEAN HOGS:
The lean hog complex is now trading higher as the market may have potentially found some technical footing after nearly trading lower all of this past week. February lean hogs are up $0.42 at $79.60, April lean hogs are up $0.60 at $86.32 and June lean hogs are up $0.50 at $99.85. It is helping matters that this morning the carcass is up $3.43, but that's mainly because of the $5.52 jump in the ham and the $5.41 gain in the belly.
Hog prices on the Daily Direct Morning Hog Report are unavailable because of confidentiality. However, we can see that 5,516 head have traded, and that the market's five-day rolling average now sits at $79.56. Prices are noted in Iowa/Minnesota, and in the Western Corn Belt, so packer demand/activity is lagging in the Eastern Corn Belt. Pork cutouts total 243.88 loads with 216.32 loads of pork cuts and 27.56 loads of trim. Pork cutout values: up $3.43, $91.83.
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