DTN Midday Livestock Comments          01/14 11:52

   Traders Push Livestock Contracts Higher

   All three of the livestock contracts are trading higher and still no cash 
cattle trade has developed.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The day's trade has been mostly uneventful, but traders are helping to 
continue to drive the livestock contracts higher. Still no trade has developed 
in the cash cattle market. March corn is down 2 cents per bushel and March 
soybean meal is down $1.60. The Dow Jones Industrial Average is down 66.21 
points.

LIVE CATTLE:

   The live cattle complex is trading mixed as the nearby contracts are 
continuing to grind higher as traders believe that the market's fundamentals 
will prevail again later this week, but the deferred contracts are trading 
mildly lower. February live cattle are up $0.77 at $198.17, April live cattle 
are up $0.90 at $199.10 and June live cattle are up $0.65 at $193.17. It is 
worth noting that the choice cut is showing a little weakness this morning as 
choice cuts are down $0.70, but the select cut is still rallying as it's up 
$1.27. If this trend continues in the days ahead, it could be troubling for the 
market's aspirations to continue to rally as demand has been the backbone of 
the cattle market's rally through this cycle. It's too early to know if this is 
the case or not, but we need to continue to monitor boxed beef prices closely. 
Still no trade has developed yet in the countryside, and bids and asking prices 
are still not known.

   Boxed beef prices are mixed: choice down $0.70 ($332.65) and select up $1.27 
($318.84) with a movement of 96 loads (58.83 loads of choice, 18.65 loads of 
select, 2.65 loads of trim and 15.43 loads of ground beef).

FEEDER CATTLE:

   With the added market support of seeing the live cattle contracts trading 
higher amid a weaker tone in the corn complex -- it's been an easy decision for 
traders to lead the feeder cattle contracts higher this morning. January 
feeders are up $2.75 at $274.75, March feeders are up $1.17 at $269.07 and 
April feeders are up $1.12 at $269.45. Thankfully demand continues to shine 
through as sales in the countryside remain utterly incredible, and with the 
board's rally again today, eagerness and momentum from the contracts could help 
bolster stronger trade throughout the week.

LEAN HOGS:

   Continuing to rally thanks to the support of stronger pork cutout values, 
the lean hog contracts are still higher today. February lean hogs are up $0.27 
at $83.45, April lean hogs are up $1.22 at $90.52 and Juen elan hogs are up 
$1.20 at $103.67. The biggest gains being seen this morning in terms of pork 
cutout values are the butt's $3.76 jump, and the belly's $3.27 increase -- but 
I think it's even more worthwhile to note that this morning, none of the cuts 
are showing a decline which illuminates the point that demand is strong.

   The projected lean hog index for 1/13/2025 is up $0.23 at $80.99, and the 
actual index for 1/10/2025 is up $0.33 at $80.76. Hog prices are higher on the 
Daily Direct Morning Hog Report, up $1.88 with a weighted average price of 
$79.50, ranging from $74.00 to $80.50, on 605 head and a five-day rolling 
average of $78.84. Pork cutouts total 168.53 loads with 149.40 loads of pork 
cuts and 19.13 loads of trim. Pork cutout values: up $2.03, $92.23.

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




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