GENERAL COMMENTS:
The cattle complex is trading higher again today as traders are pleased to see the continued uptick in boxed beef prices. Still no cash cattle trade has developed but asking prices are noted at $225 plus in the South. March corn is down 6 3/4 cents per bushel and January soybean meal is down $0.40. The Dow Jones Industrial Average is up 375.78 points and NASDAQ is up 44.34 points.
LIVE CATTLE:
The live cattle complex is trading higher into Wednesday's noon hour, thankful to again see stronger boxed beef prices. The market initially opened lower at Wednesday's start, but upon seeing improved fundamentals, traders felt as though there was enough support in the market to justify trading the contracts higher. December live cattle are up $1.37 at $219.85, February live cattle are up $1.67 at $222.57 and April live cattle are up $1.52 at $223.95. Still no cash cattle trade has developed, but asking prices are noted in the South at $225, and are still not established in the North. It is assumed that cash prices will be higher this week with the uptick in boxed beef prices and with the board's support.
The other factor that could be helping drive the cattle contracts higher is the announcement from Texas Agriculture Commissioner Sid Miller that another detection of New World screwworm (NWS) was found in Montemorelos, Nuevo Leon, Mexico, which is approximately 120 miles south of the Texas border. This development could mean that the border will stay closed longer than assumed.
Boxed beef prices are higher: choice up $0.68 ($365.40) and select up $2.31 ($353.09) with a movement of 79 loads (53.75 loads of choice, 9.28 loads of select, 4.12 loads of trim and 11.50 loads of ground beef).
FEEDER CATTLE:
With the live cattle market's support, the feeder cattle complex is trading over $3.00 higher into Wednesday's noon hour. It was rather impressive to note some of the sales made Tuesday afternoon at sale barns across the country as some were trading $20.00 to $30.00 higher, with instances as much as $50.00 higher than the week before. That obviously showed up in the CME feeder cattle index as well, which jumped $12.66 to $332.36. Today's support of the futures contracts should only encourage more buying in sale barns this afternoon. January feeders are up $3.12 at $333.00, March feeders are up $3.25 at $327.17 and April feeders are up $2.90 at $326.20.
LEAN HOGS:
After enduring a couple days of weaker trade, the lean hog complex is back to trading higher as the market is no longer up against immediate resistance pressure. December lean hogs are up $0.20 at $80.70, February lean hogs are up $0.97 at $81.15 and April lean hogs are up $0.90 at $84.72. Helping encourage traders to send the contracts higher is also the fact that pork cutout values are a tick stronger.
The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.05 with a weighted average price of $69.01, ranging from $65.00 to $74.00 on 3,063 head and a five-day rolling average of $69.36. Pork cutouts totaled 172.37 loads with 148.58 loads of pork cuts and 23.79 loads of trim. Pork cutout values: up $0.47, $94.69.
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