DTN Midday Livestock Comments 01/19 11:32

DTN Midday Livestock Comments 01/19 11:32 Thursday Brings Substantial Deterioration to Livestock Complex Outside pressures have sent the livestock contracts trading lower into Thursday's afternoon, which could create havoc for the cash market. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: When looking at Thursday's market it's safe to say that "Annie didn't bar the door," because regardless of where you look, the markets are facing a mere bloodbath. The cash cattle market still hasn't traded and with the decline in the futures contracts, feedlots are going to be lucky to trade cattle steady at this point. March corn is up 2 cents per bushel and March soybean meal is down $3.80. The Dow Jones Industrial Average is down 242.91 points. LIVE CATTLE: The live cattle complex is trading lower and, unfortunately, that doesn't bode well for the cash market that's yet to trade. February live cattle are down $1.05 at $155.75, April live cattle are down $1.35 at $158.87 and June live cattle are down $0.97 at $155.90. The spot April contract is holding above the 100-day moving average, but it's anyone's guess at this point if the market will still be able to hold that threshold at closing. The cash cattle market hasn't seen much interest develop but there are a few bids on the table. Packers are offering $154 in Kansas, and $248 in Nebraska, but those offers are still well below feedlots' asking prices. Asking prices in the South are noted at $158 plus, and in the North at $249 plus. Trade could develop later today, but it's also just as likely that trade holds off until Friday at this point. Boxed beef prices are higher: choice up $0.35 ($274.43) and select up $1.90 ($255.76) with a movement of 49 loads (29.16 loads of choice, 6.82 loads of select, 3.73 loads of trim and 9.55 loads of trim). FEEDER CATTLE: The feeder cattle contracts are plummeting lower into Thursday's afternoon as feeders can't escape the pressure that's mounding over the marketplace. Even with corn prices trading mostly lower, it's enough support to keep the feeder cattle market from deteriorating. January feeders are down $1.90 at $177.60, March feeders are down $2.55 at $189.20 and April feeders are down $2.15 at $184.15. The outside pressure that's driving the feeder cattle contracts lower won't likely ease ahead of the day's end. LEAN HOGS: The lean hog complex is trailing lower into Thursday's afternoon. As traders obviously feel pressured and don't find the market's fundamental support to be enough to hold prices steady, the market is seeing prices regress anywhere from 40 to 140 points. February lean hogs are down $0.52 at $76.80, April lean hogs are down $1.65 at $84.55 and June lean hogs are down $1.40 at $102.02. It is promising to see pork cutout values up slightly as that may mean that the day's afternoon prices could see slight support. However, with the livestock complex feeling pressured, it's unlikely that the lean hog contracts will rebound and close higher ahead of the day's end. The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.20 with a weighted average of $70.06, ranging from $68.00 to $74.00 on 3,899 head and a five-day rolling average of $70.99. Pork cutouts total 202.69 loads with 185.76 loads of pork cuts and 16.93 loads of trim. Pork cutout values: up $0.27, $78.16. ShayLe Stewart can be reached [email protected] (c) Copyright 2023 DTN, LLC. All rights reserved.