DTN Midday Livestock Comments 01/04 11:48

DTN Midday Livestock Comments 01/04 11:48 Feeders Soar Higher as Corn Drops 10 to 15 Cents With corn prices dropping drastically, the feeder cattle contracts have been given the opportunity to charge higher and they haven't wasted time in doing so. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: With corn prices down $0.10 to $0.15 as the market nears the noon hour -- the feeder cattle complex is elated and is charging higher. The cash cattle market hasn't seen any trade develop, and it's likely trade holds off until Thursday or Friday to develop. March corn is down 15 cents per bushel and March soybean meal is down $4.40. The Dow Jones Industrial Average is up 233.09 points. LIVE CATTLE: The live cattle complex is trading higher into Wednesday afternoon as the market anticipates cash cattle will indeed trade higher again this week. It's not usual for the feeder cattle complex to lead the live cattle contracts higher. But with the breakout trade that feeders are fronting -- the live cattle contracts are taking note. February live cattle are up $0.52 at $157.37, April live cattle are up $0.75 at $161.62 and June live cattle are up $0.52 at $157.35. The cash cattle market hasn't seen much interest develop at this point, and it's likely trade waits to develop until Thursday, if not even Friday as feedlots are serious about moving the market higher. Asking prices in the South are noted at $158-plus but are still not established in the North. There has been a major packer reported to be bidding $252 in parts of Eastern Nebraska -- but at this point no cattle have traded and feedlots don't seem overly excited about the offer. Boxed beef prices are unavailable at this time. FEEDER CATTLE: As the corn complex plumets $0.10 to $0.15 lower heading into Wednesday afternoon, the feeder cattle complex is breaking out of its sideways trading range and running anywhere from 122 to 337 points higher. The market's momentum is fully stemming from the fact that corn prices are taking a nose-dive, as the live cattle complex is trading higher, but only mildly so. It is unlikely the cash cattle market begins to trade cattle this afternoon as feedlots are firm in their asking prices. But come Thursday, if cattle begin to trade for more money, that will only add more momentum to feeders' rally. And we can't fail to mention the fact that feeder cattle sales were in hot demand Tuesday afternoon. After the long holiday break buyers have been showing up to sales aggressively early this week and showing they want their pens full. January feeders are up $2.45 at $185.15, March feeders are up $3.37 at $188.15 and April feeders are up $2.87 at $191.65. It's thrilling to watch the August 2023 through November 2023 contracts all trade above $200.00 -- now whether or not the market will maintain that price point until that time remains unknown; but we can be hopeful. LEAN HOGS: The lean hog complex is keeping with its downward regression as traders are still leery about what demand lays ahead in the market's future. Yes, midday pork cutout values are up $5.06 -- but the midday value doesn't mean much and especially so when the big boost comes from a $29.84 jump in bellies. With cold storage possessing so much inventory, it's hard for the market to have a good feel on demand when supply can easily be added. February lean hogs are down $1.30 at $83.80, April lean hogs are down $1.05 at $92.75 and June lean hogs are down $1.05 at $107.10. The projected CME Lean Hog Index is unavailable at this time. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.04 with a weighted average of $73.12, ranging from $72.00 to $77.00 on 9,502 head and a five-day rolling average of $74.38. Pork cutouts total 220.55 loads with 177.94 loads of pork cuts and 42.61 loads of trim. Pork cutout values: up $5.06, $91.06. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2023 DTN, LLC. All rights reserved.