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DTN Midday Livestock Comments 01/25 11:43

25 Jan 2023
DTN Midday Livestock Comments 01/25 11:43 Stronger Tones Noticed in the Livestock Arena The livestock complex is trading mostly higher into Wednesday's afternoon as traders are mildly supporting the contracts and as fundamental support helps complement the move. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is trending mostly higher into Wednesday's noon hour as the corn complex is posing little to no threat as it trades steady, and as the markets have found some technical support. No cash cattle bids have developed at this point, and it's likely that the week's business waits to develop until Thursday. March corn is up 1/4 cent per bushel and March soybean meal is up $2.10. The Dow Jones Industrial Average is down 223.51 points. LIVE CATTLE: The live cattle market is keeping with its ascend as the complex patiently awaits to see what the cash cattle market does this week. The contracts are trading mostly higher into Wednesday's afternoon as the market has gained more technical support and anticipates cash cattle to trade at least steady if not slightly higher given that packers need cattle. February live cattle are down $0.32 at $157.52, April live cattle are up $0.02 at $161.32 and June live cattle are up $0.10 at $157.95. The cash cattle market hasn't seen any bids develop at this point and while the market could see some bids develop this afternoon, it's more likely that the week's trade holds off until Thursday or Friday to develop. Asking prices in the South are noted at $157, but are still not established in the North. The Fed Cattle Exchange Auction held today reported 6 lots (all lots in Texas), totaling 986 head of cattle, none of which sold. Opening prices were at $154 to $155, there were no bids, reserve prices were $156.50 to $157.50. Boxed beef prices are lower: choice down $1.42 ($268.22) and select down $1.87 ($250.52) with a movement of 88 loads (52.91 loads of choice, 19.27 loads of select, 2.91 loads of trim and 12.73 loads of ground beef). FEEDER CATTLE: With Wednesday's corn market trading mostly steady, the feeder cattle contracts are mildly rallying into Wednesday's noon hour. Demand throughout sales were mixed last week but thus far this week buyers have been more aggressive and their eagerness to buy calves and feeders has lent some fundamental support to the feeder cattle market. If the cash cattle market is indeed able to trade higher, that too will boost the feeder cattle market's morale and likely help the contracts continue to trade higher so long as corn remains steady. March feeders are up $0.12 at $183.72, April feeders are up $0.17 at $188.10 and May feeders are up $0.30 at $192.27. LEAN HOGS: The lean hog complex is trading mostly higher into Wednesday's afternoon as the market has found technical support and appreciates seeing packer interest in the cash market. February lean hogs are down $0.12 at $76.97, April lean hogs are up $0.25 at $85.62 and June lean hogs are up $0.30 at $101.97. The spot April contract has been able to hold above the support plane of $85.00 which is significant. If pork cutout values can trade mostly steady and packer interest remain noticeable in the market, the futures contracts stand a strong chance at continuing to trade higher as the market is seeing more well-rounded support. The projected lean hog index for Jan. 24 is up $0.22 at $72.32 and the actual index for Jan. 23 is down $0.02 at $72.11. Hog prices are higher on the Daily Direct Morning Hog Report, up $2.21 with a weighted average of $72.27, ranging from $67.00 to $74.00 on 8,808 head and a five-day rolling average of $70.99. Pork cutouts total 152.10 loads with 124.00 loads of pork cuts and 28.10 loads of trim. Pork cutout values: up $0.57, $80.63. ShayLe Stewart can be reached (c) Copyright 2023 DTN, LLC. All rights reserved.