DTN Midday Livestock Comments          01/13 11:35

   Mixed Tones Summarize the Livestock Complex Early in the Week 

   The lean hog complex is continuing to trade higher as the market is thankful 
for the uptick is demand. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed at Monday's noon hour as the cattle 
contracts are leery of trading higher until they see what develops 
fundamentally this week, but the lean hog contracts are trading higher upon the 
arrival of better pork demand. Higher corn prices are also deterring the feeder 
cattle complex from trading higher. March corn is up 5 1/2 cents per bushel and 
March soybean meal is up $6.80. The Dow Jones Industrial Average is up 156.47 
points.

LIVE CATTLE:

   Following last week's incredible rally, traders are leery of overly 
supporting the live cattle complex this week until tried-and-true market 
fundamentals show that they're going to be supportive again this week. February 
live cattle are down $042 at $198.35, April live cattle are down $0.40 at 
$199.07 and June live cattle are down $0.70 at $193.45. It's obviously too 
early in the week for any developments to have surfaced in the cash cattle 
market, but undoubtedly, feedlot managers are going to price their showlists 
higher again this week.

   Last week Northern dressed cattle traded anywhere from $315 to $330, but 
mostly at $320, which is $5.00 higher than the previous week's weighted 
average. And Southern live cattle traded anywhere from $200 to $202, which is 
$4.00 to $6.00 higher than the previous week's weighted average. Both the live 
and dressed prices mark yet another new all-time high for both regions.

   Boxed beef prices are mixed: choice down $0.52 ($332.32) and select up $2.96 
($317.10) with a movement of 62 loads (41.29 loads of choice, 7.53 loads of 
select, 5.81 loads of trim and 7.29 loads of ground beef).

FEEDER CATTLE:

   Between the corn complex trading $0.04 to $0.05 higher Monday morning and 
upon seeing the fact that the live cattle complex is a little gun shy of 
trading higher -- it comes as no real surprise that the feeder cattle complex 
is also trading lower. January feeders are up $0.35 at $272.70, March feeders 
are down $0.37 at $269.02 and April feeders are down $0.62 at $269.55. But once 
again Monday's lower move in the futures complex isn't a representation of 
what's playing out in the countryside as feeder cattle continue to trade 
strong. Monday's move is traders' technical reaction to where prices are.

LEAN HOGS:

   While the cattle complex is tiptoeing around, the lean hog contracts are 
trading higher as they're pleased with the uptick in demand as of late. 
February lean hogs are up $0.90 at $83.45, April lean hogs are up $1.27 at 
$89.95 and June lean hogs are up $0.75 at $103.32. This morning the biggest 
driving factors for the carcass's ability to be higher is because of the ham's 
$4.74 gain, and the rib's $4.73 gain. Meanwhile the cash hog market is silent 
with only 345 head having traded thus far.

   The projected lean hog index for 1/10/2025 is up $0.34 at $80.77, and the 
actual index for 1/9/2025 is down $0.16 at $80.43. Hog prices are lower on the 
Daily Direct Morning Hog Report, down $0.36 with a weighted average price of 
$77.62, ranging from $70.50 to $79.00 on 345 head and a five-day rolling 
average of $78.68. Pork cutouts total 153.65 loads with 129.25 loads of pork 
cuts and 24.40 loads of trim. Pork cutout values: up $1.47, $92.83.

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




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