GENERAL COMMENTS:
The livestock complex traded mixed throughout the day as the lean hog complex continued to inch higher. However, the cattle contracts were technically troubled throughout the day, even though fed cash cattle prices traded higher. Southern live cattle were marked at $208, which is $6.00 to $7.00 higher. Dressed cattle sold for $330, which is steady to $2.00 higher than last week's weighted average. March corn is down 6 3/4 cents per bushel and March soybean meal is down $5.10. The Dow Jones Industrial Average is up 168.61 points.
Thursday's export report shared that beef net sales of 20,200 mt for 2025 were primarily for South Korea (11,300 mt), Japan (3,800 mt) and Mexico (2,100 mt). Pork net sales of 33,600 mt for 2025 were primarily for Mexico (11,800 mt), China (11,200 mt) and South Korea (3,700 mt).
LIVE CATTLE:
The live cattle complex was an odd market to watch throughout the day as the marketplace had two very different realities and influences pulling upon it. The technical side of the market scurried lower at the day's start and was simply unwilling to look at any other possible direction other than trading sharply lower. Meanwhile, the cash cattle market continued to do what it has recently done best -- and that's to continue to trade higher. Throughout the day, Southern live cattle traded at mostly $208, which is $6.00 to $7.00 higher than last week's weighted average, and Northern dressed cattle traded at mostly $330, which is steady to $2.00 higher than last week's weighted average. Some more cash cattle trade will likely develop ahead of the week's end, but the week's prices are likely set. The big-ticket item to watch for on Friday will be the Cattle Inventory report, which will likely showcase another decline in the U.S. beef cow herd. February live cattle closed $2.55 lower at $204.47, April live cattle closed $3.45 lower at $201.50 and June live cattle closed $2.97 lower at $195.77.
Thursday's slaughter is estimated at 122,000 head -- 1,000 head less than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed lower: choice down $3.06 ($327.48) and select down $4.77 ($315.90) with a movement of 138 loads (89.92 loads of choice, 26.40 loads of select, 12.54 loads of trim and 9.58 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that cattle have now traded in both regions, it's likely that any more trade that does develop will remain steady with the week's trend.
FEEDER CATTLE:
The feeder cattle complex was merely glued to the live cattle complex as it followed closely the live cattle market's direction. March feeders closed $2.07 lower at $273.20, April feeders closed $2.27 lower at $272.32 and May feeders closed $2.67 lower at $270.30. Even though the fed cash cattle market traded higher throughout the day, traders seemed unwilling to focus on anything besides the technical mayhem unraveling some of the cattle complex's recent success. At Torrington Livestock Auction in Torrington, Wyoming, compared to last week, steer calves under 650 pounds traded $3.00 to $5.00 higher, with a few instances where prices reached $10.00 higher. Heifer calves traded unevenly steady, with 400-pound heifers trading $5.00 lower. Feeder cattle supply over 600 pounds was 46%. The CME feeder cattle index 1/29/2025: up $1.62, $281.07.
LEAN HOGS:
Although the cattle contracts suffered throughout the day, the lean hog complex continued to inch higher through Thursday's close. February lean hogs closed $0.47 higher at $84.37, April lean hogs closed $0.60 higher at $91.92 and June lean hogs closed $0.40 higher at $103.87. Although it was somewhat disappointing to see pork cutout values dip slightly lower, the morning's strong export report did help lend some continued encouragement to the futures complex. The big obstacle that the lean hog complex now has to dance with is whether or not trades want to take on the market's resistance at $92.00. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.87 with a weighted average price of $80.62 on 1,693 head. Pork cutouts totaled 213.04 loads, with 188.57 loads of pork cuts and 24.48 loads of trim. Pork cutout values: down $0.38, $92.93. Thursday's slaughter is estimated at 483,000 head -- 25,000 head more than a week ago and steady with a year ago. The CME lean hog index 1/28/2025: up $0.48, $82.59.
FRIDAY'S HOG CALL: Lower. At this point, packers are all but done buying this week in the cash hog market.
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