DTN Midday Livestock Comments          01/23 12:03

   Strong Morning for Lean Hog Market 

   Thursday aligns to be another positive day for lean hog contracts and a 
lower day for cattle contracts. 

By ShayLe Stewart
DTN Livestock Analyst

General Comments

   It's been a tough week for cattle contracts yet an inspiring week for the 
lean hog market and if the lean hog sector can keep its momentum it's looking 
the week could end that way too. March corn is up 3 1/2 cents per bushel and 
March soybean meal is up $0.50. The Dow Jones Industrial Average is down 128.87 
points and NASDAQ is down 8.39 points. 

   LIVE CATTLE 

   Live cattle contracts are having another dreary day realizing that with the 
cash cattle market's trade pretty much set for the week (steady) that there's 
not a lot of chance of future's gaining position as the lean hog market is 
hitting the market with the aggression. Most of the business is anticipated to 
be done in the South, and the North is still parking in some trade at $199 
dressed and $124 live -- all steady with the last two weeks. The interesting 
note about the trade in the North is that a lot of the cattle are selling with 
delayed delivery for the week of February 3, which makes one anxious about the 
cash cattle trade the next two weeks. February live cattle are down $0.75 at 
$125.42, April live cattle are down $1.20 at $125.57 and June live cattle are 
down $0.82 at $117.62. 

   Boxed beef prices are mixed: choice up $0.48 ($215.44) and select down $0.96 
($211.06) with a movement of 69 loads (41.18 loads of choice, 16.21 loads of 
select, 3.34 loads of trim and 8.64 loads of ground beef). 

   FEEDER CATTLE 

   Wednesday was tough on the feeder cattle market, as contracts lost 
significant position, and Thursday though less drastic is also trading lower. 
January feeders are down $0.15 at $143.77, March feeders are down $0.12 at 
$142.92 and April feeders are down $0.42 at $145.60. As cash cattle trade 
lower, significant volumes of feeders sell at the sale barns and as the live 
cattle contracts dip lower -- it makes it a tough road for feeder cattle 
contracts to try to rally. 

   LEAN HOGS 

   Higher future's market, higher cash prices, aggressive slaughter and higher 
cutout values make for a very happy and healthy lean hog market. Nearby futures 
contracts are pushing harder Thursday morning for higher prices and 
interestingly cumulative interest is following right along. February lean hogs 
are up $1.12 at $68.67, April lean hogs are up $1.07 at $75.60 and May lean 
hogs are up $1.15 at $82.00. 

   The projected lean hog index for 1/21/2020 is up $0.84 at $61.02 and the 
actual for 1/20/2020 is up $0.04 at $60.18. Hog prices are higher on the 
National Direct Morning Hog Report, up $0.93 with a weighted average of $52.85, 
ranging from $48.00 to $54.50 on 6,296 head sold and a five-day rolling average 
of $51.92. Pork cutouts total 123.61 loads with 108.71 loads of pork cuts and 
14.90 loads of trim. Pork cutout values: up $0.72, $79.46. 

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


(CZ)

Copyright 2020 DTN/The Progressive Farmer. All rights reserved.