CattleLink Market View

Live cattle: Last week, the live cattle complex was temperamental, due in part to extreme winter weather conditions and supply concerns. Southern live cattle sales were marked at $235 to $240.50, mostly $238 to $240, $3 to $5 higher than the prior week, while Northern dressed deals had a range of $368 to $378.50, mostly $375 to $378, $6 to $9 higher than the previous week. From Friday to Friday, the Feb contract was up $0.95, but the Apr issue ended the week down $0.13. Today, live futures ended the day sharply higher (up 232 to 292), due in part to Friday’s bullish USDA Cattle inventory report, showing the U.S. cattle herd reaching a 75-year low, high demand, and last week’s higher live cattle sales.

Feeder cattle: The feeder cattle complex traded with a higher undertone for most of the week, but a late-week reversal saw futures drop sharply on Friday due to higher cash cattle prices and nasty weather conditions that caused some canceled sales in several areas. From Friday to Friday, the Mar contract gained $0.10 while Apr issues lost $0.47. Today, feeder cattle futures ended the day sharply to significantly higher (up 362 to 607), also tied to the Cattle inventory report, strong demand and short-bought processors.

Lean hogs: The lean hog complex started last week higher, but ended lower on Friday, as many considered the market overbought. The devilish winter weather was also a factor, as many are watching how the cold weather will affect hog weights. From Friday to Friday, the Feb contract was down $1.10, and the Apr issue was off $1.02. Today, lean hog futures ended the day higher (up 35 to 185) due to strong demand, tightening supplies, and technical buying.

Corn: March corn futures finished last week down 2 1/4 cents and fell another 2 1/2 on Monday to settle at $4.25 3/4, pressured by better rain chances in Argentina and the above-average pace of planting in Brazil’s second corn crop.

Soybean meal: March soybean meal futures closed down $6.30 last week, and on Monday, it was up $0.90 to end the day at $294.50.