GENERAL COMMENTS:
The livestock complex had another successful day, where the contracts all closed higher. Still no cash cattle trade has developed, but asking prices in the South are noted at $232. March corn is down 1 3/4 cents per bushel, and March soybean meal is down $1. The Dow Jones Industrial Average is down 94.87 points, and the NASDAQ is down 55.27 points.
LIVE CATTLE:
The live cattle complex had a fruitful day where the contracts pressed onward and traded higher, but still, the live cattle contracts weren't confident enough to challenge the market's 100-day moving average. February live cattle closed $1.50 higher at $230.47, April live cattle closed $1.45 higher at $230.97 and June live cattle closed $1.62 higher at $225.80. Depending on what develops fundamentally in the weeks to come, I personally don't believe the timing is probably right for traders to want to challenge the resistance at the 100-day moving average given that this week is a holiday-shortened week. But next week or the week after, if fundamental support is strong, traders will likely shoulder some more risk. Still no cash cattle trade has developed, but asking prices are noted in the South at $232 and remain unestablished in the North.
Tuesday's slaughter is estimated at 122,000 head -- 1,000 head less than a week ago and incomparable to a year ago.
Boxed beef prices closed lower: choice down $1.13 ($348.20) and select down $2.46 ($342.16) with a movement of 209 loads (158.32 loads of choice, 25.31 loads of select, 12.30 loads of trim and 12.84 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that his week is a holiday-shortened week, it's likely that cash prices will trade steady.
FEEDER CATTLE:
The feeder cattle complex traded higher throughout the day as the market was encouraged to see the live cattle contracts trading higher as well. January feeders closed $2.55 higher at $349.55, March feeders closed $2.90 higher at $344.57 and April feeders closed $3 higher at $343.42. The market continues to press onward and trade above its 100-day moving average, as traders are optimistic about the year ahead. The CME feeder cattle index 12/29/2025: down $7.96, $348.04.
LEAN HOGS:
The lean hog complex also had a fruitful day, where the contracts traded higher, as the spot February contract was no longer up against immediate resistance pressure. February lean hogs closed $0.97 higher at $85.45, April lean hogs closed $0.77 higher at $90.17, and June lean hogs closed $0.55 higher at $102.97. It's unlikely that the contract will try to break through the market's resistance at $86 unless something substantial develops fundamentally, as that resistance threshold is significant. Hog prices on the Daily Direct Afternoon Hog Report averaged $70.38 on 1,600 head. Pork cutouts total 346.30 loads with 305.80 loads of pork cuts and 40.50 loads of trim. Pork cutout values: down $1.83, $94.13. Tuesday's slaughter is estimated at 492,000 head -- 5,000 head more than a week ago and incomparable to a year ago. The CME lean hog index 12/26/2025: up $1.40, $82.44.
WEDNESDAY'S HOG CALL: Lower. Given that it's a holiday-shortened week, packers won't likely pay much attention to the cash hog market.
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