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DTN Midday Livestock Comments 01/13 11:35
Mixed Tones Summarize the Livestock Complex Early in the Week
The lean hog complex is continuing to trade higher as the market is thankful
for the uptick is demand.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mixed at Monday's noon hour as the cattle
contracts are leery of trading higher until they see what develops
fundamentally this week, but the lean hog contracts are trading higher upon the
arrival of better pork demand. Higher corn prices are also deterring the feeder
cattle complex from trading higher. March corn is up 5 1/2 cents per bushel and
March soybean meal is up $6.80. The Dow Jones Industrial Average is up 156.47
points.
LIVE CATTLE:
Following last week's incredible rally, traders are leery of overly
supporting the live cattle complex this week until tried-and-true market
fundamentals show that they're going to be supportive again this week. February
live cattle are down $042 at $198.35, April live cattle are down $0.40 at
$199.07 and June live cattle are down $0.70 at $193.45. It's obviously too
early in the week for any developments to have surfaced in the cash cattle
market, but undoubtedly, feedlot managers are going to price their showlists
higher again this week.
Last week Northern dressed cattle traded anywhere from $315 to $330, but
mostly at $320, which is $5.00 higher than the previous week's weighted
average. And Southern live cattle traded anywhere from $200 to $202, which is
$4.00 to $6.00 higher than the previous week's weighted average. Both the live
and dressed prices mark yet another new all-time high for both regions.
Boxed beef prices are mixed: choice down $0.52 ($332.32) and select up $2.96
($317.10) with a movement of 62 loads (41.29 loads of choice, 7.53 loads of
select, 5.81 loads of trim and 7.29 loads of ground beef).
FEEDER CATTLE:
Between the corn complex trading $0.04 to $0.05 higher Monday morning and
upon seeing the fact that the live cattle complex is a little gun shy of
trading higher -- it comes as no real surprise that the feeder cattle complex
is also trading lower. January feeders are up $0.35 at $272.70, March feeders
are down $0.37 at $269.02 and April feeders are down $0.62 at $269.55. But once
again Monday's lower move in the futures complex isn't a representation of
what's playing out in the countryside as feeder cattle continue to trade
strong. Monday's move is traders' technical reaction to where prices are.
LEAN HOGS:
While the cattle complex is tiptoeing around, the lean hog contracts are
trading higher as they're pleased with the uptick in demand as of late.
February lean hogs are up $0.90 at $83.45, April lean hogs are up $1.27 at
$89.95 and June lean hogs are up $0.75 at $103.32. This morning the biggest
driving factors for the carcass's ability to be higher is because of the ham's
$4.74 gain, and the rib's $4.73 gain. Meanwhile the cash hog market is silent
with only 345 head having traded thus far.
The projected lean hog index for 1/10/2025 is up $0.34 at $80.77, and the
actual index for 1/9/2025 is down $0.16 at $80.43. Hog prices are lower on the
Daily Direct Morning Hog Report, down $0.36 with a weighted average price of
$77.62, ranging from $70.50 to $79.00 on 345 head and a five-day rolling
average of $78.68. Pork cutouts total 153.65 loads with 129.25 loads of pork
cuts and 24.40 loads of trim. Pork cutout values: up $1.47, $92.83.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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