GENERAL COMMENTS:
Thankfully the cattle complex has found better support in Wednesday's market as the vast majority of both the live cattle and feeder cattle contracts are trading higher. The cash cattle market currently has bids on the table in the North at $202 to $203 live and $320 dressed, but no sales have been reported just yet. March corn is up 4 cents per bushel and March soybean meal is down $2.70. The Dow Jones Industrial Average is down 164.44 points.
LIVE CATTLE:
Although Wednesday morning's Consumer Price Index showed that inflation for the month of January was up 0.5% -- the cattle complex is largely trading higher following Tuesday's continued downturn. A couple of the nearby contracts are trading mildly lower, but that's most likely because traders are holding their breath waiting to see what develops with this week's cash cattle market. February live cattle are down $0.25 at $199.42, April live cattle are down $0.17 at $195.82 and June live cattle are up $0.12 at $191.50. At this point, a few bids are currently being offered in the North at $202 to $203 live and dressed at $320, but no trade has developed just yet. Asking prices remain firm in the South at $204 plus, but are still not established in the North.
Boxed beef prices are lower: choice down $1.52 ($320.94) and select down $2.07 ($310.14) with a movement of 79 loads (52.68 loads of choice, 14.38 loads of select, 4.36 loads of trim and 7.25 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading fully higher into Wednesday's noon hour as the market is pleased to see a little more support from the live cattle complex. Overall, it's seeming as though traders agree that Tuesday's sharp decline was enough downward momentum for the time being. Feeder cattle demand has softened slightly in the countryside compared to the record high prices that were seen just weeks ago, but when you consider the prices of just last year or years past, prices are still utterly phenomenal. March feeders are up $0.55 at $265.32, April feeders are up $0.62 at $265.60 and May feeders are up $0.52 at $264.20.
LEAN HOGS:
The lean hog complex isn't holding back any more as the market shoots noticeably higher -- appearing to be thankful to have broken above the market's long-term resistance. April lean hogs are up $1.27 at $94.35, June live cattle are up $1.02 at $105.72 and July lean hogs are up $0.80 at $106.05. The biggest leading reason why Wednesday morning's carcass price is lower is due to the $3.12 decline in the loin. However, just like we saw on Tuesday, there's a chance that afternoon prices could improve and offer traders the reassurance that consumer demand is still sufficient.
The projected lean hog index for 2/11/2025 is up $0.89 at $87.08, and the actual index for 2/10/2025 is up $0.44 at $86.19. Hog prices are higher on the Daily Direct Morning Hog Report, up $2.04 with a weighted average price of $88.57, ranging from $82.00 to $91.50 on 3,121 head and a five-day rolling average of $87.05. Pork cutouts total 197.58 loads with 175.12 loads of pork cuts and 22.46 loads of trim. Pork cutout values: down $0.91, $98.81.
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