GENERAL COMMENTS:
The livestock complex was able to see better technical success throughout the day as all three of the markets closed higher. Meanwhile, the cash cattle market wasn't as lucky as the few cattle that were traded throughout the day were sold for $1.00 to $3.00 lower compared to last week's weighted average. March corn is down 1 1/4 cents per bushel and March soybean meal is down $5.70. The Dow Jones Industrial Average is up 317.24 points.
LIVE CATTLE:
Wednesday's market brought a change of direction for the live cattle complex as the contracts were finally able to regain some technical footing in the marketplace following Monday and Tuesday's lower ascend. February live cattle closed $1.72 higher at $203.60, April live cattle closed $2.65 higher at $201.30 and June live cattle closed $2.67 higher at $195.90. But while the futures complex found some support and mild success throughout the day, the few sales that did develop in the cash cattle market weren't as fortunate. Only a handful of cattle were sold in both regions, but prices were lower than compared to last week's weighted average as Northern dressed cattle were marked at $328 ($1.00 lower than last week's weighted average) and Southern live cattle sold for $205 ($3.00 lower than last week's weighted average. Packers are desperate to keep the cash cattle market from trading higher as their margins have suffered immensely -- but until more cattle sell, I'm not confident in saying that the week's weighted averages are set as feedlot managers still possess the lion's share of the market's leverage.
Wednesday's slaughter is estimated at 121,000 head -- 3,000 head less than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed lower: choice down $5.39 ($325.34) and select down $3.08 ($314.33) with a movement of 161 loads (85.77 loads of choice, 40.64 loads of select, 22.74 loads of trim and 11.38 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady/somewhat lower. Prices are likely going to trade steady to somewhat lower this week as we've seen a few cattle already sell for cheaper money -- but not enough cattle have traded yet to say that any sort of a trend has been established.
FEEDER CATTLE:
At last, the feeder cattle complex was able to find some technical stability this week as earlier the market was hard-pressed to find any support at all. But between seeing the live cattle contracts trend higher and seeing the corn complex close mostly steady, feeders felt as though advancing the feeder cattle contracts higher was a solid move. March feeders closed $2.47 higher at $270.72, April feeders closed $2.85 higher at $270.47 and May feeders closed $3.00 higher at $268.80. Meanwhile, prices in the countryside bobbled slightly compared to the prices of recent weeks. At the Winter Livestock Auction in La Junta, Colorado, compared to last week, feeder steers sold mostly $3.00 to $5.00 lower, with instances of sharply lower across all weight groups. Feeder heifers traded $2.00 to $5.00 lower with instances of sharply lower across all weight groups. Feeder cattle supply over 600 pounds was 49%. The CME feeder cattle index 2/4/2025: down $0.42, $279.03.
LEAN HOGS:
Although pork cutout values closed slightly lower, the lean hog complex was thrilled to see technical support alive and well in its market again today. It's been a bumpy week for the hog sector as Monday's trade was pressured by the news headlines that overwhelmed the marketplace, but on Tuesday, traders again supported the complex and thankfully did so again today. Heading into Thursday's trade, the week's export report will be a big line item for the market, and hog enthusiasts are hopeful that demand will be plentiful and encourage the contracts to continue with their higher trend. But with the spot April contract nearing $92.00 -- the market again is going to be feeling some resistance pressure, which could pull some of the steam out of its sail. February lean hogs closed $1.57 higher at $86.65, April lean hogs closed $1.80 higher at $91.55 and June lean hogs closed $1.90 higher at $103.85. Hog prices closed higher on the Daily Direct Morning Hog Report, up $1.31 with a weighted average price of $86.31 on 6,934 head. Pork cutouts totaled 366.82 loads, with 335.43 loads of pork cuts and 31.39 loads of trim. Pork cutout values: down $0.93, 93.83. Wednesday's slaughter is estimated at 489,000 head -- 6,000 head more than a week ago and 1,000 head more than a year ago. The CME lean hog index 2/5/2025: up $0.31, $84.08.
THURSDAY'S HOG CALL: Lower. It's likely that packers have fulfilled the vast majority of their needs for the week and that they'll be less active in the cash market on Thursday and Friday.
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