Tuesday Midday Livestock Market Update - Strong Fundamental Support Continues to Push Contracts Higher

GENERAL COMMENTS:

The livestock complex is higher into Tuesday's noon hour as traders remain encouraged by the outpour of fundamental support the market has seen in recent days. Still no cash cattle trade has developed and it's likely trade will be delayed until Thursday or Friday this week. March corn is up 2 1/4 cents per bushel and March soybean meal is down $1.70. The Dow Jones Industrial Average is down 126.17 points and NASDAQ is down 306.56 points.

LIVE CATTLE:

The live cattle complex continues to move higher as traders have gained another level of confidence following last Friday's bullish Cattle Inventory report. February live cattle are up $0.20 at $238.37, April live cattle are up $0.05 at $239.57 and June live cattle are up $0.80 at $235.05. The market is pressuring its technical barriers as this is currently the highest price point traded at since last October. As long as fundamental support continues to remain robust, traders will likely remain supportive and push the contracts higher. But it's undeniable traders will need to see continued fundamental support. Following last week's strong trade in the fed cash cattle market, there's been no new business develop yet and it's most likely trade will be delayed until Thursday or Friday of this week. It is assumed prices will be higher again this week as supplies of market-ready cattle remain thin.

Boxed beef prices are higher: choice up $2.66 ($370.87) and select up $2.85 ($367.76) with a movement of 56 loads (40.98 loads of choice, 3.08 loads of select, 4.94 loads of trim and 6.53 loads of ground beef).

FEEDER CATTLE:

With encouragement from last week's bullish Cattle Inventory report, the stronger trade in the fed cash cattle market last week, and the live cattle contracts now trading higher, the feeder cattle complex is trading higher thanks to these support factors. March feeders are up $0.27 at $366.62, April feeders are up $0.47 at $364.65 and May feeders are $1.35 at $361.70. If the live cattle contracts happen to weaken, there's a strong chance the feeder cattle contracts will too.

LEAN HOGS:

The projected CME Lean Hog Index is delayed from the source. Hog prices average $86.27 on the Daily Direct Morning Hog Report, with prices ranging from $80.00 to $88.00 on 2,461 head and a five-day rolling average of $85.12. Pork cutouts total 191.65 loads with 176.52 loads of pork cuts and 15.13 loads of trim. Pork cutout values: up $0.35, $96.05.