Tuesday Midday Livestock Market Update - Traders Continue to Push Contracts Higher

GENERAL COMMENTS:

The livestock complex is trading mostly higher into Tuesday's noon hour as traders remain actively supportive of the livestock contracts. Still no cash cattle trade has developed but asking prices are noted at $233 plus in the South. March corn is down 3 3/4 cents per bushel and January soybean meal is down $1.00. The Dow Jones Industrial Average is down 220.83 points and NASDAQ is down 8.02 points.

LIVE CATTLE:

The live cattle complex is trading higher into Tuesday's noon hour as the market is pleased with the continued support of strong beef demand. February live cattle are down $0.07 at $230.47, April live cattle are up $0.17 at $230.20 and June live cattle are up $0.32 at $223.75. The market's 100-day moving average remains a stiff resistance threshold for the market and even with the support from higher boxed beef prices, traders don't firmly believe that they have enough support to currently trade above that threshold. No cash cattle trade has developed yet, but asking prices are noted in the South at $233 plus but still remain elusive in the North.

Boxed beef prices are higher: choice up $0.78 ($360.24) and select up $1.73 ($349.03) with a movement of 48 loads (33.79 loads of choice, 8.30 loads of select, zero loads of trim and 5.98 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is off to a bold start this morning as the market is currently trading above its 100-day moving average in most of the nearby contracts. Fueled by strong buyer demand in the countryside and by the continued support of traders, the market is tiptoeing into territory that hasn't been traded at since late October. January feeders are up $4.00 at $343.92, March feeders are up $3.20 at $338.07 and April feeders are up $3.00 at $336.77.

LEAN HOGS:

And even with midday pork cutout values a tick lower, the lean hog complex is continuing to trade higher as traders remain committed to supporting the lean hog market. February lean hogs are up $0.67 at $82.52, April lean hogs are up $0.75 at $89.67 and June lean hogs are up $0.67 at $101.75. The market could soften later this afternoon if fundamental support doesn't arise.

The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.09 with a weighted average price of $69.91, ranging from $64.00 to $72.00 on 2,149 head with a five-day rolling average of $71.55. Pork cutouts total 180.49 loads with 157.11 loads of pork cuts and 23.38 loads of trim. Pork cutout values: down $0.47, $98.42.