GENERAL COMMENTS:
The livestock complex closed mixed, with the cattle contracts keeping their rally through the end of the day, but the lean hog complex ran out of momentum and closed lower. Still no cash cattle trade has developed. March corn is up 3 1/2 cents per bushel and March soybean meal is up $3.80. The Dow Jones Industrial Average is up 12.19 points and the NASDAQ is up 40.35 points.
LIVE CATTLE:
The live cattle complex was brave throughout Wednesday's trade as traders elected to push the spot April contract up to the market's resistance at $239, but weren't willing just yet to attempt to conquer that threshold. I call the complex brave simply because traders didn't have to push the market higher, as there's been little fundamental support develop this week, as boxed beef prices are mixed, and there's been no sizeable trade yet in the fed cash cattle market. Now it is fully assumed that later this week fed cash cattle will trade higher, but time will tell. February live cattle closed $1.22 higher at $236.82, April live cattle closed $1.32 higher at $238.72 and June live cattle closed $1.20 higher at $234.45. A few bids were offered throughout the day in Nebraska at $236, but still no cattle traded.
Wednesday's slaughter is estimated at 112,000 head, 2,000 head less than a week ago but 12,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $1.63 ($369.74) and select down $1.62 (363.57) with a movement of 86 loads (61.53 loads of choice, 7.94 loads of select, 5.55 loads of trim and 10.84 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. With fed cash cattle supplies thin, prices will likely be higher when cattle trade later this week.
FEEDER CATTLE:
The feeder cattle complex was also brave throughout the day, as although the market seemed to mostly follow the direction of the live cattle complex, it also threatened its resistance level in the spot March contract. March feeders closed $3.85 higher at $365.85, April feeders closed $3.65 higher at $364.30 and May feeders closed $3.40 higher at $361.35. At the Winter Livestock Auction in Dodge City, Kansas, compared to last week, steers over 600 pounds were well tested to establish a definite market trend, but steers under 600 pounds sold unevenly steady, with black steers selling $15.00 higher while red lots were too fleshy and unweaned. The sale had minimal receipts compared to last week, as the winter snowstorm affected most in the area. The CME feeder cattle index 1/27/2026: down $0.74, $363.99.
LEAN HOGS:
The lean hog complex simply ran out of steam by the time Wednesday rolled around. February lean hogs closed $1.10 lower at $87.95, April lean hogs closed $1.67 lower at $95.15 and June lean hogs closed $1.45 lower at $107.92. Pork cutout values were a tick lower, which doesn't help the market's lower tone, but it was refreshing to see a larger volume traded in the cash hog market. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.46 with a weighted average price of $85.31 on 7,300 head. Pork cutouts totaled 296.78 loads with 263.21 loads of pork cuts and 33.56 loads of trim. Pork cutout values: down $0.64, $95.05. Wednesday's slaughter is estimated at 493,000 head, 6,000 head more than a week ago and 11,000 head more than a year ago. The CME lean hog index 1/26/2026: up $0.42, $84.43.
THURSDAY'S HOG CALL: Lower. Given that packers bought somewhat aggressively today, it's likely that they'll be less aggressive later in the week.
No comments:
Post a Comment