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DTN Midday Livestock Comments 02/07 12:24
Technical Support Comes with Friday's Trade
With no new cash cattle sales having been reported, it looks like the bulk
of this week's trade is done.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
Following Thursday's immense pressure, the livestock complex has again found
support and stability in Friday's trade. No new cash cattle sales have been
reported and it's looking like the bulk of this week's trend is essentially
done with. March corn is down 8 1/4 cents per bushel and March soybean meal is
down $5.10. The Dow Jones Industrial Average is down 320.96 points.
LIVE CATTLE:
It seems as though traders have again found some technical stability
following Thursday's sharp correction. It's been a burdensome week full of
heavy-hitting news headlines that have weighed heavily upon the complex.
Between Monday's reaction to the tariff talks over the weekend, to APHIS's
announcement that Mexican cattle imports were going to resume this week to
Thursday's unraveling news that dairy cattle in Nevada had contracted a new
strain of bird flu -- it's been a grim week for traders and the cattle complex
to sort through. April live cattle are up $0.07 at $196.85, June live cattle
are up $0.45 at $192.27 and August live cattle are up $0.55 at $189.27. No new
trade has been reported in the cash cattle market, and it's looking like the
bulk of this week's trade is done with. So far this week Southern live cattle
have traded for $206 which is $2.00 lower than last week's weighted average and
Northern dressed cattle have traded at mostly $328 which is $1.00 lower than
last week's weighted average.
Boxed beef prices are lower on the Daily Direct Morning Hog Report, down
$1.72 ($322.26) and select down $0.24 ($314.53) with a movement of 134 loads
(75.13 loads of choice, 8.77 loads of select, 35.70 loads of trim and 13.94
loads of ground beef).
FEEDER CATTLE:
After seeming unable to catch its breath throughout Thursday's trade as the
market gushed lower -- the feeder cattle complex has found some support in
Friday's market and is trading mostly steady to somewhat higher. March feeders
are steady at $265.30, April feeders are up $0.22 at $265.22 and May feeders
are up $0.52 at $264.22. It's unsettling to see the spot March contract trading
around the market's 40-day moving average, which will remain a threshold
traders monitor closely because if the market drops far below that level, then
more bearishness will likely consume the complex.
LEAN HOGS:
Seeming unconcerned about the market's resistance, the lean hog complex
continues to rally into Friday's noon hour. February lean hogs are up $0.52 at
$87.15, April lean hogs are up $0.62 at $92.37 and June lean hogs are up $0.50
at $104.35. It is extremely helpful that pork cutout values are up over $1.00
this morning as demand continues to be one of the biggest driving components
for the market at this time.
The projected lean hog index for 2/6/2025 is up $0.34 at $85.39, and the
actual index for 2/5/2025 is up $0.45 at $85.05. Hog prices on the Daily Direct
Morning Hog report average $84.49, ranging from $81.00 to $88.00 on 1,526 head
and a five-day rolling average of $85.64. Pork cutouts total 202.42 loads with
183.61 loads of pork cuts and 18.82 loads of trim. Pork cutout values: up
$1.65, $97.29.
**
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