GENERAL COMMENTS:
The livestock complex is again trading mixed as the marketplace lacks consensus from traders who are quick to back away and let the contracts turn lower. No cash cattle trade has developed yet and it's likely that trade will be delayed for another day or two. March corn is down 4 cents per bushel and March soybean meal is up $1.10. The Dow Jones Industrial Average is down 168.41 points.
LIVE CATTLE:
The back and forth nature of the live cattle market's game of cat and mouse, where one day the market closes lower to then be followed by mild technical support the next day, is shaping up to play true again in Wednesday's market. Besides the soon-to-expire February live cattle contracts, the rest of the live cattle contracts are trading mostly from $0.50 to $0.77 higher as traders seem to be looking around for one another's consensus as to whether or not enough immediate downside pressure has been inflicted upon the market. In the spot April contract, the market is within only $2.00 of its 100-day moving average, which remains a critical threshold to continue to monitor. April live cattle are up $0.75 at $194.77, June live cattle are up $0.57 at $190.97 and August live cattle are up $0.50 at $189.32. No cash cattle trade has developed yet, but asking prices are noted in the South at $202 to $204, and the North has yet to list their asking prices. Trade will likely be delayed another day or two.
Boxed beef prices are mixed: choice down $1.76 ($314.01) and select up $0.64 ($304.35) with a movement of 77 loads (54.67 loads of choice, 9.21 loads of select, zero loads of trim and 13.21 loads of ground beef).
FEEDER CATTLE:
Unfortunately, the momentum that pushed the feeder cattle complex sharply higher throughout all of Tuesday's market seems to have dissipated as the complex is now trading lower. The market is currently nearing a resistance level (at $270), which is imposing some technical pressure, but otherwise, traders seem to be waiting to see if any fundamental support develops and helps encourage higher trade. March feeders are down $1.12 at $268.60, April feeders are down $0.92 at $268.17 and May feeders are down $0.52 at $266.80.
LEAN HOGS:
With morning pork cutout values lower, and pressure noted in Tuesday's closing cutout price as well -- immense downward pressure has overtaken the lean hog complex. April lean hogs are down $3.00 at $90.20, June lean hogs are down $2.97 at $102.27 and July lean hogs are down $2.50 at $103.20. With the recent change in direction, the market has come under pressure and once again fallen below the resistance level at $92.00 in the spot April contract. In terms of what's driving the carcass price's decline on a per-individual cut basis, the tremendous $10.25 fall of the belly is to blame.
The projected lean hog index for 2/14/2025 is up $0.98 at $89.75, and the actual index for 2/13/2025 is up $0.71 at $88.77. Hog prices on the Daily Direct Morning Hog Report average $92.77, ranging from $87.50 to $94.00 on 5,649 head and a five-day rolling average of $91.33. Pork cutouts total 147.24 loads with 131.54 loads of pork cuts and 15.70 loads of trim. Pork cutout values: down $3.10, $96.37.
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