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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.

   **

   Come see DTN at the National Farm Machinery Show in Louisville, Kentucky, 
Feb. 12-15. Our 2025 Global Commodity Market and Weather Outlook presentation, 
featuring Lead Analyst Rhett Montgomery and Ag Meteorologist John Baranick is 
scheduled for 2:30-3:30 p.m. Wednesday, Feb. 12; 8:30-10:00 a.m. Thursday, Feb. 
13; 10:00-11:00 a.m. Friday, Feb. 14. All times Eastern Standard.




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