DTN Midday Livestock Comments 01/25 11:31

DTN Midday Livestock Comments 01/25 11:31 Hogs Continue to Trek Higher Heading into Thursday's afternoon, be on the lookout for more cash cattle trade as the market hasn't seen much interest yet. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is seeing mixed interest from traders as the hog and live cattle contracts trade mostly higher, but the feeder cattle contracts are reverting backward. The cash cattle market remains mostly quiet as only a few more cattle have traded in the South. March corn is down 1 3/4 cents per bushel and March soybean meal is down $3.50. The Dow Jones Industrial Average is up 48.30 points. Thursday's export report shared that beef net sales of 22,400 mt for 2024 were primarily for South Korea (9,600 mt), China (3,100 mt) and Japan (2,800 mt). Pork net sales of 24,100 mt were primarily for Mexico (9,700 mt), Japan (3,100 mt) Australia (2,200 mt). LIVE CATTLE The live cattle complex is trading mixed as traders continue to support the nearby contracts but are letting the later 2024/early 2025 contracts drift lower. Traders are hopeful that the cash cattle market will stand firm and add another $1.00 or $2.00 to its current market and given that only a handful more of cattle have traded this morning in the South, that wish could come true. A few more cattle have sold this morning in Kansas at $174 which is fully steady with yesterday's trade but $1.00 higher than last week's weighted average. Bids are being offered in the North at $275, but with asking prices firm at $276 to $278, Northern cattle have yet to trade. Choice boxed beef prices are seeing some resistance as the market quickly scampered back from $300.00. This doesn't come as much of a surprise given that consumers are financially strained, and that strong beef demand doesn't usually spark the market until late in the Spring when grilling season perks up. The recent uptick in boxed beef prices has largely stemmed from the fact that packers were short supply after having reduced kill speeds during the January storms. February live cattle are up $0.22 at $175.57, April live cattle are up $0.37 at $178.72 and June live cattle are up $0.40 at $175.85. Boxed beef prices are mixed: choice down $1.66 ($297.84) and select up $0.68 ($287.92) with a movement of 67 loads (56.38 loads of choice, 6.18 loads of select, zero loads of trim and 4.07 loads of ground beef). FEEDER CATTLE The feeder cattle complex is waving its white flag as traders are letting most of the contracts drift lower into the noon hour. March feeders are down $0.37 at $233.40, April feeders are down $0.17 at $239.62 and May feeders are up $0.22 at $245.32. The spot March contract is currently trading at the highest price point in which the market has entertained since last November. After supporting the contracts robustly over the last two weeks, traders are now wanting to see continued fundamental demand to justify trading any higher in the near term. LEAN HOGS With adequate export demand and slightly higher midday pork cutout values, the lean hog contracts are continuing to trade higher. February lean hogs are up $0.45 at $74.35, April lean hogs are up $0.42 at $82.45 and June lean hogs are up $0.27 at $95.15. The cash hog market has yet to see any substantial trade develop, and at this point one has to wonder if the market will see any day this week where trade tops over 10,000 head. The projected lean hog index for 1/24/2024 is up $0.28 at $69.67, and the actual index for 1/23/2024 is up $0.63 at $69.39. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.12 with a weighted average price of $55.47, ranging from $45.00 to $60.00 on 1,778 head and a five-day rolling average of $49.01. Pork cutouts total 149.93 loads with 124.30 loads of pork cuts and 25.64 loads of trim. Pork cutout values: up $1.51, $90.37. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.