GENERAL COMMENTS:
After enduring immense pressure earlier in the week, the livestock contracts have finally found some stability in the futures complex this week. A handful of cattle have sold in the North at $328, but with only a handful having been sold at this point, no trend has been established yet for the week. March corn is down 3 1/4 cents per bushel and March soybean meal is down $4.80. The Dow Jones Industrial Average is up 105.99 points.
LIVE CATTLE:
After facing some stiff opposition earlier in the week as traders had to sort through the long list of news headlines that broke over the weekend, the complex finally seems to be finding stable ground again in technical sphere of the market. February live cattle are up $1.95 at $203.82, April live cattle are up $2.60 at $201.22 and June live cattle are up $2.60 at $195.82. Amid the market's recent decline, there's ample room for the market to trade higher again without concerns of resistance pressures looming. But again, fundamental support will be necessary as traders have faced hurdles already this week. Packer interest should continue to improve throughout the day, and it's likely that trade could break loose at any point in time now. Some light cash cattle trade has been reported in Nebraska at $328, which is $1.00 lower than last week's weighted average. But with only a few cattle having been traded, the week hasn't established a trend just yet. Asking prices are still noted in the South at $208, and $329 plus in the North.
Boxed beef prices are lower: choice down $4.59 ($326.14) and select down $2.21 ($315.20) with a movement of 87 loads (50.47 loads of choice, 24.96 loads of select, 3.98 loads of trim and 7.36 loads of ground beef).
FEEDER CATTLE:
Wednesday has come with a sigh of relief as the live cattle contacts are back to trading higher and the feeder cattle complex is also thankful to see corn prices now trending lower. March feeders are up $2.02 at $270.35, April feeders are up $2.37 at $270.00 and May feeders are up $2.60 at $268.40. Thankfully demand in the countryside remains plentiful as buyers are aware that supplies of feeder cattle are going to remain thin this year, and the closer time gets to turn out season and green grass in the spring, the more likely it is that feeders are going to be more expensive.
LEAN HOGS:
The lean hog complex is also trading higher as traders are relieved to see that President Trump and Mexico's President Claudia Sheinbaum have found some middle ground, which is vital to the lean hog market's wellbeing. Mexico is the biggest export market for U.S. pork. February lean hogs are up $0.87 at $85.95, April lean hogs are up $0.75 at $90.50 and June lean hogs are up $1.05 at $103.00. Midday pork cutout values are slightly lower, but traders are hopeful that domestic demand will prevail this week as it has in recent weeks and continue to show strong consumer confidence.
The projected lean hog index for 2/4/2025 is up $0.52 at $84.60, and the actual index for 2/3/2025 is up $0.31 at $84.08. Hog prices on the Daily Direct Morning Hog Report average 86.45, ranging from $81.50 to $87.00 on 2,175 head and a five-day rolling average of $85.21 on 2,175 head. Pork cutouts total 204.84 loads with 190.90 loads of pork cuts and 13.95 loads of trim. Pork cutout values: down $0.47, $94.29.
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