GENERAL COMMENTS:
Sharp losses in feeder cattle futures are leading the entire live cattle market lower. Initial market weakness seen Thursday across the cattle market led to additional concerns in both live cattle and feeder cattle futures. The overall lack of buyer support seems to be focused not only on outside market moves, but technical and fundamental pressure in both live cattle and feeder cattle markets seems to be building through the end of the week, leaving room for additional end-of-month weakness as traders look to close the books on February. May corn is up 3 at $4.465 and May soybean meal is down $2.00 at $318.9. The Dow Jones Industrial Average is down 579.61 at 48,919.59.
LIVE CATTLE:
Live cattle futures have posted active pressure across all futures contracts, with spot month February contracts trading $2 per cwt lower, while other nearby contracts are trading $3 to $3.60 per cwt lower. Continued strong pressure in outside markets is adding additional pressure to the entire live cattle complex. Cash cattle markets are starting to improve with light trade reported in parts of Kansas at $244, $5 lower than last week's weighted averages. A few live deals are also being reported in parts of Nebraska. Some bids are now on the table in Texas, but so far, they are being passed. Packer inquiries will continue to improve as the day progresses. February live cattle are $2.00 lower at $244.00, April live cattle are $4.30 lower at $232.60 and June live cattle are $4.10 lower at $229.30.
Boxed beef prices are Higher: choice up $1.08 ($378.97) and select up $3.44 ($374.23) with a movement of 48.35 loads (38.87 loads of choice, 2.46 loads of select, no loads of trim and 7.02 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are leading the market lower Friday morning as buyer support seemed to crack during the Thursday trading session. The overall lack of buying interest stepping into the market during initial trade Friday in outside markets seemed to leave even more pressure flooding into the complex. Spot month contracts are holding the best at this point with prices over $5 per cwt lower at midday, while other nearby contracts are holding $7 to $7.50 per cwt losses as traders have not only focusing on outside market pressure, but also a lack of market stability through the entire beef complex at the end of the month. March feeders are $6.28 lower at $355.37, April feeders are $7.78 lower at $350.975 and May feeders are $8.53 lower at $346.775.
LEAN HOGS:
Lean hog futures once again are the quiet and more stable livestock market of the complex, with prices mixed within a very narrow trading range despite the aggressive selling pressure flooding into both the cattle trade and outside financial markets. April futures continue to trade higher through the morning and heading into midday, with a 30-cent gain developing. The rest of the complex remains slightly under pressure with losses of 5 to 15 cents per cwt holding in most nearby contracts. The overall lack of direction in both pork market technical trade as well as stability in market fundamental direction through late February seems to be a welcome relief compared to the market pressure across other markets. April lean hogs are $0.35 higher at $96.075, May lean hogs are $0.05 lower at $100.3 and June lean hogs closed steady. Hog Prices are lower on the Daily Direct Morning Hog report, down $0.88 with a weighted average of $90.97, ranging from $86.50 to $91.00 on 2,438 head with a five-day rolling average of $91.03. Pork Cutouts totaled 178.30 loads with 163.99 loads of pork cuts and 14.31 loads of trim. Pork cutout values are down $1.19 at $97.55.
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