Thursday Midday Markets - Southern Cattle Trading for $195 -- $2.00 to $3.00 Higher

GENERAL COMMENTS:

The livestock complex is trading mostly higher as traders have dived aggressively into the livestock complex following the New Year's holiday. Some light cash cattle trade is currently being noted in the South at $195 which is $2.00 to $3.00 higher, but otherwise, the market is still quiet. March corn is up 3/4 cent per bushel and March soybean meal is up $2.30. The Dow Jones Industrial Average is down 179.77 points.

LIVE CATTLE:

Well, if today's trade is any inclination to what the rest of the year is going to be – buckle up friends! It's been exhilarating to watch the live cattle contracts trade throughout Thursday's market as the complex is anxiously waiting to see just how the week's cash cattle trade pans out -- but traders believe so strongly about the market's fundamental position that it is continuing to trade higher. February live cattle are up $1.82 at $193.40, April live cattle are up $1.77 at $196.07 and June live cattle are up $1.87 at $191.50. A thin movement of trade has been noted in the South at $195 which is $2.00 to $3.00 higher than last week's weighed average, but otherwise, the market is still quiet. A single bid of $310 dressed is currently being offered in the North, but no Northern sales have been noted yet. Asking prices are firm in the South at $195 to $196 but are still not established in the North. Packer interest will likely improve throughout the day, but the week's trade could be delayed until Friday.

Boxed beef prices are lower: choice down $1.67 ($322.55) and select down $0.23 ($294.29) with a movement of 53 loads (29.89 loads of choice, 7.46 loads of select, zero loads of trim and 15.26 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is rocking and rolling as Thursday's noon hour nears as most of the nearby contracts are trading anywhere from $2.00 to $3.00 higher. January feeders are up $3.57 at $266.65, March feeders are up $3.50 at $266.47 and April feeders are up $3.17 at $266.72. It will be especially interesting to watch feeder cattle sales over the next two weeks, as buyer demand will likely be strong given that the market has been on a holiday hiatus and buyers will likely have large orders to fill.

LEAN HOGS:

After trading sharply lower earlier in the week, the lean hog complex has finally found some technical footing. The spot February contract is trading slightly lower, but the rest of the 2025 and 2026 contracts are all trading higher as there's hope for better export opportunities. February lean hogs are down $0.02 at $81.25, April lean hogs are up $0.05 at $86.62 and June lean hogs are up $0.22 at $99.40.

The projected lean hog index is delayed from the source. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 345 head have traded and that the market's five-day rolling average now sits at $79.59. Pork cutouts total 123.12 loads with 107.90 loads of pork cuts and 15.22 loads of trim. Pork cutout values: up $2.17, $92.47.