DTN Midday Livestock Comments 01/24 12:03
Livestock Contracts Head Lower
The lean hog complex may have had a phenomenal movement earlier in the week
but now as the week nears the week's end, all three sectors are trading lower.
By ShayLe Stewart
DTN Livestock Analyst
Friday usually adds a little positivity to the complex before the week ends
but as noon hour approaches all three sectors are trading lower. There seems to
be a little interest building in nearby live cattle contracts but not enough
that will probably amount to anything before the day closes. March corn is down
4 1/2 cents per bushel and March soybean meal is down $0.40. The Dow Jones
Industrial Average is down 161.75 points and NASDAQ is down 68.95 points.
It's a quiet and an unusual Friday for the live cattle contracts as cash
cattle traded early and the country is through selling for the most part.
Seeing that cash cattle trade is already established there's little hope that
the interest developing in the spot live cattle contract will amount to much of
anything. February live cattle are up $0.15 at $124.82, April live cattle
contracts are down $0.05 at $124.12 and June live cattle are down $0.40 at
Boxed beef cutouts are lower: choice down $0.54 ($214.78) and select down
$0.76 ($210.44) with a movement of 56 loads (38.97 loads of choice, 6.53 loads
of select, 5.57 loads of trim and 4.79 loads of ground beef).
As calves continue to trot across the scales at sale barns, the sheer volume
of calves selling is pressuring parts of the market and making it hard for the
board to find any support while the live cattle contracts have been down all
week as well. January feeders are down $0.52 at $142.25, March feeders are down
$0.72 at $139.80 and April feeders are down $0.85 at $142.62.
The lean hog rally may be diving lower on the board, but I think it's
important to note that cash prices didn't weaken Friday morning, indicating
that packers are still aggressively on the hunt for more hogs and willing to
pay even higher prices. February lean hogs are down $1.47 at $67.02, April lean
hogs are down $2.17 at $73.17 and May lean hogs are down $2.57 at $79.20.
The projected lean hog index for 1/23/2020 is up $0.24 at $61.53, and the
actual for 1/22/2020 came up $0.27 at $61.29. Hog prices on the National Direct
Morning Hog Report are higher, up $0.62 with a weighted average of $52.76,
ranging from $47.00 to $55.00 on 6,308 head sold and a five-day rolling average
of $52.14. Pork cutouts total 119.17 loads with 104.96 loads of pork cuts and
14.21 loads of trim. Pork cutout values: down $1.24, $77.60.
ShayLe Stewart can be reached email@example.com
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