DTN Midday Livestock Comments 01/22 11:52

DTN Midday Livestock Comments 01/22 11:52 Livestock Errs on Side of Caution to Start Monday The livestock complex is trading mostly lower Monday as traders hope to see follow-through support after last week's strong performance throughout the futures complex. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is taking a cautious approach to the start of the new week as traders continue to examine last week's Cattle on Feed report and long to see continued support in this week's market to justify higher trade. Following last week's measly cash cattle trade (only 37,348 head moved) feedlots will likely price cattle higher this week as they suspect packers could be short bought. March corn is up 1 1/4 cents per bushel and March soybean meal is down $1.90. The Dow Jones Industrial Average is up 131.78 points. LIVE CATTLE: After running to long-term resistance levels late last week, live cattle futures are skeptical of trading too boldly. February live cattle are down $0.92 at $173.45, April live cattle are down $0.72 at $176.65, and June live cattle are down $0.42 at $173.90. Thankfully this week's slaughter is expected to be more aggressive as packers will have the full week to process cattle and stronger boxed beef prices should encourage them even more. Friday's Cattle on Feed report isn't having much of an effect on the market as traders deemed the report's data as neutral, but looking for strong demand factors or an uptick in the cash market to spark prices higher. Last week's negotiated cash cattle trade was disappointing as very few cattle traded. But of the few cattle that did trade, Northern dressed cattle sold for $272 to $277, mostly at $274, which is $1.00 higher than the previous week. Southern live cattle sold for mostly $173, $1.00 higher than the week before. The week's volume of negotiated cash cattle sales totaled 37,348 head. Of which 87% (32,534 head) are committed for nearby delivery, while the remaining 13% are committed to deferred delivery. Boxed beef prices are higher: choice up $2.31 ($297.81) and select up $2.00 ($285.05) with a movement of 41 loads (30.10 loads of choice, 3.57 loads of select, zero loads of trim and 7.32 loads of ground beef). FEEDER CATTLE: With corn futures steady to somewhat lower and phenomenal countryside demand for feeders, one would think feeder cattle futures would be higher; but the slow, lackadaisical nature of Monday isn't allowing the complex to do so. January feeders are down $0.20 at $229.90, March feeders are down $1.45 at $230.50 and April feeders are down $1.12 at $236.35. Friday's Cattle on Feed report can't be blamed for the market's red ink this morning as overall the report was found to be neutral. And even though placements came in slightly above year-ago levels there were fewer cattle placed than a month ago, which continues to echo the fact that feedlot's inventories may be full, but there are fewer feeders left to be sought and had in the country. LEAN HOGS: Like the cattle complex, the lean hog market has been off to a slow start thus far Monday. The midday carcass price is well supported as most of the cuts are seeing better interest and thus higher prices. But with only a few cash sales reported and a strong likelihood carcass prices could change by this afternoon, traders remain cautious. February lean hogs are down $0.05 at $70.70, April lean hogs are down $0.55 at $77.60 and June lean hogs are down $0.20 at $91.45. The projected CME Lean Hog Index for 1/19/2023 is up $0.34 at $68.40, and the actual lean hog index for 1/18/2023 is up $0.19 at $68.06. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.27 with a weighted average price of $46.23, ranging from $46.00 to $48.00 on 1,880 head. Pork cutouts total 134.69 loads with 112.87 loads of pork cuts and 21.82 loads of trim. Pork cutout values: up $2.27, $90.83. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.