DTN Midday Livestock Comments          01/23 11:46

   Traders Continue to Propel the Cattle Contracts Higher

   Although the contracts are rallying, the cash cattle market is still silent 
with no new trade having been reported just yet. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   It's been another prosperous day for the livestock complex as all three of 
the markets are trading higher again today -- even though contract highs were 
reached for many of the live cattle and feeder cattle contracts on Wednesday. 
The added market support of the Dow Jones continued rally is helping matters, 
as well as economic strength always bodes well for the commodity markets. March 
corn is up 8 1/2 cents per bushel and March soybean meal is up $2.20. The Dow 
Jones Industrial Average is up 266.65 points.

LIVE CATTLE:

   As if Wednesday's ambitious action wasn't enough, the live cattle complex is 
continuing to trade higher into Thursday's noon hour. February live cattle are 
up $1.07 at $201.12, April live cattle are up $0.87 at $200.65 and June live 
cattle are up $0.92 at $195.82. And once again, Thursday's advancement scores 
new contract highs for most of the nearby contracts. Thursday's momentum is 
especially exhilarating as traders are largely making this move on their own as 
midday boxed beef prices are lower, and the cash cattle market still hasn't 
seen any significant trade development. There was a little bit of movement in 
the cash market on Tuesday at $201 in Kansas, which is fully steady with the 
previous week's weighted average but given that no more cattle have sold since 
then, it seems as though feedlot managers are content waiting for packers to 
get more aggressive in the market. Asking prices in the South are noted at $203 
plus but are still not established yet for the North. But packer interest could 
begin to pop up and improve any moment now. It is unsettling to see boxed beef 
prices lower at today's noon hour -- which needs to remain a top priority in 
monitoring in the days to come because if demand weakens, some of the market's 
momentum will inevitability dissipate.

   Boxed beef prices are lower: choice down $0.50 ($331.52) and select down 
$0.06 ($317.93) with a movement of 91 loads (47.33 loads of choice, 23.11 loads 
of select, 9.45 loads of trim and 11.03 loads of ground beef).

FEEDER CATTLE:

   With the technical support of the higher trend in the live cattle complex, 
the feeder cattle market is currently looking past the corn market's $0.07 to 
$0.08 rally, and it too is rallying into Thursday's noon hour. March feeders 
are up $1.27 at $274.37, April feeders are up $1.22 at $272.52 and May feeders 
are up $1.07 at $270.55. Aside from the technical support which the market is 
currently receiving, it's also helpful that feeder cattle demand remains 
incredible in the countryside as just Wednesday afternoon, the CME feeder 
cattle index closed at $278.18. Although much of the Midwest and Southern part 
of the United States is receiving extremely cold weather this week -- buyer 
demand hasn't weakened whatsoever.

LEAN HOGS:

   With midday pork cutout values up almost $3.00 higher -- it's no wonder why 
the lean hog complex is rallying! February lean hogs are up $0.62 at $82.10, 
April lean hogs are up $0.10 at $87.35 and June lean hogs are up $0.35 at 
$101.02. Thursday's big jump in the carcass price is mainly because of the 
$5.74 gain in the butt and the $5.18 jump in the loin, but the belly isn't far 
behind with its $4.23 rally.

   The projected lean hog index for 1/22/2025 is up $0.21 at $81.93, and the 
actual index for 1/21/2025 is up $0.26 at $81.72. Hog prices are unavailable on 
the Daily Direct Morning Hog Report because of confidentiality. However, we can 
see that only 495 head have traded this morning, and that the market's five-day 
rolling average now sits at $80.20. Pork cutouts total 162.89 loads with 151.99 
loads of pork cuts and 10.90 loads of trim. Pork cutout values: up $2.93, 
$93.10.

   ShayLe Stewart can be reached shayle.stewart@dtn.com




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