Tuesday Closing Livestock Market Update - Traders Continue to Push Cattle Contracts Higher

GENERAL COMMENTS:

The livestock complex closed mostly higher Tuesday afternoon as traders are eager to support the contracts early this week. Still no cash cattle trade has developed. March corn is down 1/2 cent per bushel and March soybean meal is down $0.40. The Dow Jones Industrial Average is up 484.90 points and the NASDAQ is up 151.35 points.

LIVE CATTLE:

Nothing besides a slow and steady upward trend developed throughout Tuesday's trade as the market yearns to trade higher, but traders didn't want to overdo the upward push from a technical standpoint. February live cattle closed $0.75 higher at $236.62, April live cattle closed $0.57 higher at $237.37 and June live cattle closed $0.65 higher at $232.07. No cash cattle trade developed throughout the day, and both bids and asking prices remain elusive at this point. 

Tuesday's slaughter is estimated at 118,000 head, 4,000 head less than a week ago and 7,000 head less than a year ago.

Boxed beef prices closed lower: choice down $2.45 ($351.25) and select down $0.42 ($351.08) with a movement of 166 loads (128.81 loads of choice, 17.46 loads of select, 9.01 loads of trim and 10.70 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Higher. With packers having not bought many cattle in recent weeks, prices will likely be higher again this week.

FEEDER CATTLE:

The feeder cattle complex again closed higher this afternoon, with an impressive $3.00 rally seen across all the feeder cattle contracts this afternoon. January feeders closed $3.20 higher at $362.17, March feeders closed $3.45 higher at $359.02 and April feeders closed $3.22 higher at $358.12. Currently, the spot March feeder cattle contract is just a little more than $20.00 away from the contract's peak, scored in October. At the Joplin Regional Stockyards in Carthage, Missouri, compared to last week, feeder steers sold $3.00 to $12.00 higher, with the heavy four weights and light five weights trading $40.00 to $50.00 higher. Feeder heifers under 650 pounds traded $12.00 to $40.00 higher, with the heavier weights selling $5.00 to $8.00 higher. Feeder cattle supply over 600 pounds was 66%. The CME feeder cattle index 1/5/2026: up $9.06, $362.17.

LEAN HOGS:

Although pork cutout values closed lower, the lean hog complex saw most of its contract come around and close just above steady prices ahead of Tuesday's end. February lean hogs closed $0.47 higher at $85.67, April lean hogs closed $0.07 higher at $91.57 and June lean hogs closed $0.05 lower at $104.27. And although pork cutout values may have dipped, it was impressive to see that this afternoon saw a movement of 419.13 loads. Hog prices closed $10.00 higher on the Daily Direct Afternoon Hog Report, with a weighted average price of $76.36 on 1,453 head. Pork cutouts totaled 419.13 loads with 368.78 loads of pork cuts and 50.35 loads of trim. Pork cutout values: down $2.59, $91.25. Tuesday's slaughter is estimated at 495,000 head, 3,000 head more than a week ago and 6,000 head more than a year ago. The CME lean hog index 1/2/2026: down $0.23, $81.62.

WEDNESDAY'S HOG CALL: Higher. Packers still haven't bought many hogs this week, and they likely need to secure more inventory.

Tuesday Midday Livestock Market Update - Cattle Trend Higher While Hogs Hold Steady

GENERAL COMMENTS:

The cattle complex continues to move higher Tuesday as traders are optimistic about demand early in 2026 and know fed cash cattle supplies will be thin. Still no cash cattle trade has developed. March corn is up 2 cents per bushel and March soybean meal is up $0.60. The Dow Jones Industrial Average is up 376.81 points and NASDAQ is up 81.98 points.

LIVE CATTLE:

The live cattle complex continues to charge onward as traders remain enthusiastic about what's to come in 2026. After breaking through the market's resistance at its 100-day moving average, we have accomplished a big technical feat and so far this week contracts charge on with gusto. It will be vital for the market's long-term potential that fundamental support arises -- especially in the form of cash cattle prices. It's been too early in the week for any cash cattle trade to have developed, and at this point bids and asking prices remain elusive. February live cattle are up $0.25 at $236.10, April live cattle are up $0.02 at $236.82 and June live cattle are up $0.15 at $231.57.

Boxed beef prices are lower: choice down $0.51 ($353.19) and select down $0.69 ($350.81) with a movement of 90 loads (66.54 loads of choice, 11.06 loads of select, 3.94 loads of trim and 8.42 loads of ground beef).

FEEDER CATTLE:

With the additional help of seeing the live cattle contracts trading higher, the feeder cattle complex continues to make substantial moves higher throughout the futures complex. Noting some of the feeder cattle sales that took place on Monday, prices were mostly higher on both feeders and calves. January futures are up $2.05 at $361.02, March feeders are up $2.20 at $357.77 and April feeders are up $1.92 at $356.82.

LEAN HOGS:

Although the lean hog complex desires to trade higher, the market is cautious to do so as it's traded exponentially higher in recent days and consumer support isn't currently showing to be as strong as traders had hoped. February lean hogs are down $0.20 at $85.95, April lean hogs are up $0.25 at $91.75 and June lean hogs are down $0.02 at $104.25.

The projected CME Lean Hog Index for 1/5/2026 is down $0.08 at $81.54, and the actual index for 1/2/2026 is down $0.23 at $81.62. Hog prices are again unavailable on the Daily Direct Morning Hog Report because of confidentiality. However we can see that only 183 head have traded and that the market's five-day rolling average now sits at $69.40. Pork cutouts totaled 246.35 loads with 211.19 loads of pork cuts and 25.16 loads of trim. Pork cutout values: down $1.49, $92.35.

Tuesday Morning Livestock Market Update - Traders Are Bullish on Cattle

GENERAL COMMENTS:

Cattle futures added to the recent gains as the price rebound continues. The February live cattle contract struggled, closing slightly lower as it has already priced in an increase in cash. There seems to be renewed consumer interest in beef. This has provided strength to boxed beef prices. Boxed beef on Monday showed choice up $3.73 and select up $4.58. Traders are optimistic that packers will need to step up to purchase cattle aggressively, resulting in higher prices. Feeder cattle futures led the charge on the recent developments of the New World screwworm (NWS) being found within the buffer zone in Mexico, indicating that the potential for the border reopening will not happen anytime soon. The May and later feeder cattle contracts gapped open on Monday, with those gaps remaining at the close. The Commitment of Traders report showed fund traders reducing their net-long live cattle futures position by 1,100 contracts to 92,214. They increased their net-long positions in feeder cattle futures contracts to 15,829.

Hog futures did an about-face on Monday, eliminating Friday's losses in the nearby contracts and then some while pushing the June and later contracts to new highs. There were not enough hogs traded in the cash market, with packers unable to report a price change on the National Daily Direct Afternoon Hog report due to packer confidentiality. Pork cutouts did not support the strength as values declined $0.73. The Commitment of Traders report showed fund traders increasing their net-long futures positions by 4,130 contracts to a net long of 76,307.

	BULL SIDE		BEAR SIDE
1)	The recent strength of cattle futures will encourage feedlots to hold for higher cash prices. Packers may need to be aggressive with their purchases to obtain the cattle they need.	1)	The strength in boxed beef may be the result of retail outlets restocking beef supplies and not increased beef demand.
2)	Feeder cattle continue to see strength because there is no potential for the resumption of feeder cattle imports from Mexico anytime soon.	2)	Feeder cattle futures left a chart gap below the market on the open Monday that will need to be filled.
3)	Traders remain bullish on hogs, though the underlying cash and cutouts have not been trending higher. Strong demand has been evident.	3)	The strength in hog futures may be limited without gains in cash and cutouts.
4)	The June and later contracts moved to new contract highs, keeping the uptrend intact and traders confident to buy into the market.	4)	There will be plenty of hogs that will be ready for marketing during the next few months that will easily satisfy demand.

Monday Closing Livestock Market Update - Traders Drive Contracts Higher

GENERAL COMMENTS:

The livestock complex ran into the first full trading week of 2026 with a bang as all three of the markets closed mostly higher. March corn is up 7 cents per bushel and March soybean meal is up $3.90. New showlists appear to be somewhat higher in Kansas, but higher in Texas, and Nebraska/Colorado. The Dow Jones Industrial Average is up 594.79 points and the NASDAQ is up 160.19 points.

LIVE CATTLE:

The live cattle complex closed mostly higher Monday afternoon as traders remain enthusiastic about the year ahead and what's to come for the cattle complex. February live cattle closed $0.12 lower at $235.87, April live cattle closed $0.82 higher at $236.80 and June live cattle closed $1.07 higher at $231.42. What continues to be important to monitor in the cattle complex is the 100-day moving average, as that's been a significant technical resistance point for the complex ever since the market plummeted in October. But last Friday (1/2/2026), the complex broke above that threshold and has maintained a position over that point ever since. New showlists appear to be somewhat higher in Kansas, but higher in Texas, and Nebraska/Colorado. 

Monday's slaughter is estimated at 115,000 head, 3,000 head less than a week ago and 7,000 head more than a year ago.

Boxed beef prices closed higher: choice up $3.73 ($353.70) and select up $4.58 ($351.50) with a movement of 118 loads (79.82 loads of choice, 17.56 loads of select, 7.17 loads of trim and 13.94 loads of ground beef).

TUESDAY'S CATTLE CALL: Higher. Given that packers haven't bought very aggressively in recent weeks, it's likely that they'll need to pay more this upcoming week for cattle.

FEEDER CATTLE:

The feeder cattle complex continued to rally aggressively through Monday's close as traders know that the market is most likely going to remain bullish through 2026 as supplies are expected to remain thin. January feeders closed $2.87 higher at $358.97, March feeders closed $2.62 higher at $355.57 and April feeders closed $2.65 higher at $354.90. It was especially interesting to note some of the prices on feeder cattle sales in the countryside today, as it's been more than two weeks since the market was last tested. At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to their last sale in December, feeder steers were trading $3.00 to $8.00 higher, but steers over 800 pounds were trading mostly steady. Feeder heifers were trading mostly $10.00 to $15.00 higher. Steer calves were selling $15.00 to $25.00 higher. Heifer calves over 500 pounds were trading mostly steady, but heifers over 500 pounds were selling $20.00 higher. Feeder cattle supply over 600 pounds was 45%. The CME feeder cattle index 1/2/2026: up $2.89, $353.11.

LEAN HOGS:

The lean hog complex had a breakout move throughout the day as traders ran the spot February contract sharply higher, and slightly above the market's resistance threshold at $86.00. February lean hogs closed $2.05 higher at $86.15, April lean hogs closed $2.40 higher at $91.50 and June lean hogs closed $1.95 higher at $104.32. And even though pork cutout values closed a tick lower this afternoon, traders pushed the complex higher without batting an eye. Hog prices on the Daily Direct Afternoon Hog Report averaged $66.36, ranging from $57.00 to $69.50 on 1,710 head. Pork cutouts totaled 408.23 loads with 367.40 loads of pork cuts and 40.83 loads of trim. Pork cutout values: down $0.73, $93.84. Monday's slaughter is estimated at 498,000 head, 48,000 head more than a week ago and 53,000 head more than a year ago. The CME lean hog index 12/31/2025: down $0.40, $81.85.

TUESDAY'S HOG CALL: Higher. After the long holiday break, packers will likely need to buy more hogs in this week's cash market.