DTN Midday Livestock Comments          01/24 11:30

   Cash Cattle Prices Jump Another $6 to $8 Higher 

   Heading into Friday afternoon, we continue to monitor any more developments 
in the cash cattle market and be on the lookout for USDA's Cattle on Feed 
report. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   It's been a dynamic and fruitful Friday morning for the cattle complex as 
both the live cattle and feeder cattle contracts are rallying thanks to the 
aggressive surge in fed cash cattle prices. Southern live cattle are currently 
trading $6.00 higher and dressed cattle prices are trading as much as $6.00 to 
$8.00 higher. March corn is down 2 3/4 cents per bushel and March soybean meal 
is down $10.80. The Dow Jones Industrial Average is down 64.65 points

LIVE CATTLE:

   If your coffee wasn't quite strong enough Friday morning, that's OK because 
the jolting rally that's taking place in the cattle complex is enough to wake 
anyone from a groggy state. Upon seeing dressed cattle begin to trade in the 
North for $6.00 to $8.00 higher, the nearby live cattle futures quickly ran 
anywhere from $2.00 to $3.00 higher and have maintained that momentum through 
morning trade. February live cattle are up $3.02 at $204.12, April live cattle 
are up $2.00 at $202.72, and June live cattle are up $1.45 at $197.15. Early 
this week, the market was hesitant to move too boldly; but by Wednesday, 
traders saw the writing on the wall that fed cattle prices were going to be at 
least steady, if not a little higher, and the bullish excitement once again ran 
rampant through the contracts. So far Friday morning, there's been some light 
trade in the North at $328 to $330, which is $6.00 to $8.00 higher than last 
week's weighted average, and live sales have been marked at $210, which is 
$6.00 higher than last week's weighted average. I think it's worthwhile to note 
that Thursday at Winter Livestock Auction in Pratt, Kansas, slaughter cows were 
trading $6.00 to $8.00 higher and slaughter bulls were selling $15.00 to $18.00 
higher as packers continue to fight being short bought but are looking for 
alternative ways to build up some more inventory. Again, this week it will be 
crucial to see how many cattle packers get bought because until they're flush 
with supplies, it's going to be hard for packers to slow this cash cattle rally 
down. But, above all else, it would be remiss of me not to credit Friday's wild 
success to feedlot managers who are keenly aware of the market dynamics at play 
and continue to hold out for more money -- which is paying dividends. Well done 
folks! This is history unfolding before our eyes!

   Boxed beef prices are lower: choice down $2.19 ($328.77) and select down 
$1.08 ($316.13) with a movement of 77 loads (57.01 loads of choice, 5.10 loads 
of select, 4.21 loads of trim and 10.88 loads of ground beef).

FEEDER CATTLE:

   With fed cash cattle prices rallying $6.00 to $8.00 higher and corn prices 
dipping lower, it's been smooth sailing for the feeder cattle contracts Friday 
morning as support has been more than ample. March feeders are up $1.00 at 
$275.07, April feeders are up $1.47 at $273.92, and May feeders are up $1.62 at 
$272.10. And with the robust fundamental support that's poured into the complex 
Friday morning -- it's likely the moves in the fed cash cattle market outweigh 
whatever is noted in this afternoon's Cattle on Feed report.

LEAN HOGS:

   The lean hog complex is mostly trading sideways into Friday's noon hour as 
the market has shifted to the backburner of the livestock complex as the cattle 
contracts are rallying robustly. February lean hogs are up $0.12 at $82.25, 
April lean hogs are down $0.05 at $87.15, and June lean hogs are down $0.12 at 
$100.55. Once again this morning, pork cutout values are showing modest support 
as the carcass is up by $0.25 -- and although that may not be by much, 
consistent stable support is.

   The projected CME Lean Hog Index for 1/23/2025 is up $0.01 at $81.92, and 
the actual index for 1/22/2025 is up $0.21 at $81.93. Hog prices on the Daily 
Direct Morning Hog Report average $78.12, ranging from $78.00 to $79.00 on 414 
head and a five-day rolling average of $80.28. Pork cutouts total 180.27 loads 
with 151.18 loads of pork cuts and 29.09 loads of trim. Pork cutout values: up 
$0.25, $92.02.

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




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