GENERAL COMMENTS:
It was another mixed day for the livestock complex as the lean hog and feeder cattle contracts closed lower, but the live cattle complex found mild support. No cash cattle trade has developed yet, but packer interest should improve on Thursday. March corn is down 4 1/2 cents per bushel and March soybean meal is up $0.90. The Dow Jones Industrial Average is up 71.25 points.
LIVE CATTLE:
The live cattle complex was able to round out the day higher following Tuesday's lower end. But today's close isn't enough of a change in direction to make anyone think that the market's downturn has seized -- it will take more than a mere steady close to help market participants believe that a near-term bottom has been formed. April live cattle closed $0.75 higher at $194.77, June live cattle closed $0.52 higher at $190.92 and August live cattle closed $0.35 higher at $189.17. No cash cattle trade developed throughout the day, but asking prices continue to be noted in the South at $202 to $204 -- but are still not established in the North.
Wednesday's slaughter is estimated at 117,000 head -- 3,000 head less than a week ago and 2,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $1.88 ($313.89) and select up $0.05 ($303.76) with a movement of 121 loads (78.86 loads of choice, 14.45 loads of select, 8.27 loads of trim and 19.37 loads of ground beef).
THURSDAY'S CATTLE CALL: Lower. Given that last week packers were able to buy cattle cheaper and procure supply, it's likely that they'll be able to do so again this week.
FEEDER CATTLE:
Following Tuesday's sharp ascent, it was disappointing to see the feeder cattle contracts trade lower, especially given the fact that the live cattle contracts traded higher throughout the day and lent some mild support. Thankfully, the spot March contract didn't fall severely enough to again close below its 40-day moving average, but that will be a threshold the market continues to monitor closely. March feeders closed $0.70 lower at $269.02, April feeders closed $0.50 lower at $268.60 and May feeders closed $0.27 lower at $267.05. The CME feeder cattle index 2/18/2025: up $0.52, $278.51.
LEAN HOGS:
It was a grim, painstaking day for the lean hog complex as domestic demand has seemed to fall out of bed for the pork sector. With pork cutout values crashing more than $3.00 lower day after day, traders have taken note of the change in demand. But what's especially frustrating is that it's the sharp decline in the belly that's pulling the carcass price lower, as it alone closed $16.75 lower today. April lean hogs closed $3.45 lower at $89.75, June lean hogs closed $3.57 lower at $101.67 and July lean hogs closed $3.10 lower at $102.60. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.19 with a weighted average price of $91.98 on 7,283 head. Pork cutouts totaled 245.80 loads, with 218.62 loads of pork cuts and 27.18 loads of trim. Pork cutout values: down $3.95, $95.52. Wednesday's slaughter is estimated at 489,000 head -- 1,000 head less than a week ago and 3,000 head less than a year ago. The CME lean hog index 2/17/2025: up $0.70, $90.19.
THURSDAY'S HOG CALL: Lower. Today's cash movement was again surprising following Tuesday's movement, which also saw 7,000 head sold. But at this point, packers have likely secured the majority of their needs for the week.
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