GENERAL COMMENTS:
The livestock complex is trading mostly lower into midday on Friday, as traders remain skeptical of advancing the contracts further ahead of Friday's close. No new cash cattle trade has developed, but some more trade should develop this afternoon, especially in the South. March corn is up 1 1/4 cents per bushel and March soybean meal is up $0.40. The Dow Jones Industrial Average is up 286.48 points and the NASDAQ is up 187.77 points.
LIVE CATTLE:
Although the fed cash cattle market has shown traders that the market's trend is most likely going to be higher this week, the live cattle contracts are slowly trading lower into Friday's noon hour. February live cattle are down $1.37 at $233.90, April live cattle are down $1.40 at $234.82 and June live cattle are down $1.32 at $229.95. Bids are on the table for the fed cash cattle market, with offers of $232 live being offered in Texas, Kansas and Nebraska. So far, feedlot managers appear firm in their asking price of $235 to $237 for live cattle, and $367 or more in the North. No new trade has developed today following the light business that developed on Thursday in the North, where dressed cattle traded at mostly $365, which is $5.00 higher than the previous week's weighted average.
Boxed beef prices are lower: choice down $1.55 ($355.24) and select down $0.62 ($351.44) with a movement of 86 loads (67.09 loads of choice, 4.94 loads of select, 3.90 loads of trim and 10.36 loads of ground beef).
FEEDER CATTLE:
And once again, in keeping with the same trend as the live cattle complex, the feeder cattle contracts are also trading lower into midday Friday. January feeders are down $2.30 at $360.30, March feeders are down $3.15 at $354.57 and April feeders are down $3.47 at $353.15. And unless the live cattle complex turns higher ahead of the week's end, the feeder cattle contracts will likely round out the day lower, too.
LEAN HOGS:
The lean hog complex is trading mixed into midday Friday, as the nearby contracts dip lower, while the deferred contracts trade slightly higher. February lean hogs are down $0.35 at $85.52, April lean hogs are down $0.20 at $91.72 and June lean hogs are down $0.05 at $104.60. Absorbing the behavior of the lean hog complex takes a mixed approach this morning, as one could logically point to the uptick in pork cutout values and say that prices should be trading higher. However, when you look at the futures complex and note the resistance pressure the market is facing, we see there hasn't been enough widespread, stable fundamental support this week to encourage traders to challenge that technical barrier.
The projected lean hog index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $68.56, ranging from $66.00 to $73.00 on 833 head and a five-day rolling average of $68.56. Pork cutouts total 193.25 loads with 169.16 loads of pork cuts and 24.08 loads of trim. Pork cutout values: up $4.94, $95.73.
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