GENERAL COMMENTS:
The lean hog complex continues to rally while the cattle complex pumps the brakes on its rally as traders wait to see what happens in the cash cattle market. At this point still no bids have surfaced. March corn is up 9 1/2 cents per bushel and March soybean meal is up $7.20. The Dow Jones Industrial Average is up 23.93 points.
LIVE CATTLE:
The live cattle complex has rallied aggressively all week, but at Wednesday's start, cautiousness poured into the marketplace and has remained the theme ever since. One could point to the day's downturn in boxed beef prices as part of the catalyst for today's weakness, and while that might be adding some pressure to the day, we also seasonally expect boxed beef prices to turn lower during this time as we are a long way away from prime grilling weather. February live cattle are down $0.90 at $207.65, April live cattle are down $1.75 at $205.52 and June live cattle are down $1.77 at $199.57. The cash cattle market is still silent with no bids having surfaced just yet. Asking prices are firm in the South at $210 but are still not established for Northern feedlots. Packer demand should begin to improve at any time now, but at this point, it's looking like trade will be delayed until Thursday or Friday.
Boxed beef prices are lower: choice down $1.68 ($330.77) and select down $1.61 ($320.35) with a movement of 101 loads (78.68 loads of choice, 13.93 loads of select, zero loads of trim and 8.82 loads of ground beef).
FEEDER CATTLE:
Upon seeing the swift $0.08 to $0.09 rally in the corn complex, and the cautiousness that arose in the live cattle complex -- it comes as no surprise that the feeder cattle contracts are also trading lower into Wednesday's noon hour. March feeders are down $1.52 at $276.72, April feeders are down $1.65 at $276.62 and April feeders are down $1.85 at $275.95. Unless the fed cash cattle market begins to note some trade at higher prices, it's unlikely that the feeder cattle contracts will change their direction ahead of the day's end.
LEAN HOGS:
Higher cash prices, higher pork cutout values, and yes, the lean hog contracts are also trading higher as traders have taken out the resistance at $91.00. With support flowing bountifully to the lean hog complex, traders collectively decided to advance the contracts again this morning. This not only helped prices surpass the resistance at $91.00, but now the nearby contracts are nearly the market's long-term resistance at $92.00. February lean hogs are up $0.45 at $84.35, April lean hogs are up $1.35 at $92.25 and June lean hogs are up $0.20 at $104.37.
The projected lean hog index for 1/28/2025 is up $0.48 at $82.59 and the actual index for 1/27/2025 is up $0.17 at $82.11. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.53 with a weighted average price of $83.87, ranging from $78.00 to $85.50 on 4,603 head and a five-day rolling average of $83.00. Pork cutouts total 179.25 loads with 157.38 loads of pork cuts and 21.87 loads of trim. Pork cutout values: up $1.50, $94.36.
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