GENERAL COMMENTS:
What a mess of a day it was for the cattle complex. Both the live cattle and feeder cattle contracts fell sharply as traders were panicked about the news circulating about New World screwworm. Southern live cattle traded at $233, which is steady with last week's weighted average and Northern dressed cattle traded at mostly $365, which is also steady with last week's weighted average. March corn is up 4 1/2 cents per bushel and March soybean meal is up $0.80. The Dow Jones Industrial Average is down 83.11 points and the NASDAQ is down 14.63 points.
From Friday to Friday, livestock futures scored the following changes: February live cattle down $1.57, April live cattle down $0.70; January feeder cattle up $1.20, March feeder cattle up $1.75; February lean hogs up $2.98, April lean hogs up $3.43; March corn down $0.21, May corn down $0.22.
LIVE CATTLE:
Friday was a change of tune for the live cattle complex as the market was mostly enjoying a sideways trend throughout the earlier part of the week until Friday rolled around. The market opened sharply lower and only continued to trade lower from the day's initial get-go for a number of different reasons: there was mass liquidation from the market ahead of the long-three day weekend, traders were growing antsy waiting for the fed cash cattle market to trade, and last but not least, there was a rumor floating around that New World screwworm was detected in the United States. I don't believe the rumor is true, as the official USDA APHIS (Animal and Plant Health Inspection Service) website states that currently no NWS is present in the US. You can access the website here:
But nevertheless, the board's bearish tone negatively affected the fed cash cattle market as prices merely traded steady with last week's weighted average. Southern live cattle traded at $233, which is steady with last week's weighted average and Northern dressed cattle traded at mostly $365, which is also steady with last week's weighted average.
Friday's slaughter is estimated at 92,000 head, 6,000 head more than a week ago and 22,000 head less than a year ago. Saturday's slaughter is projected to be around 1,000 head. The week's total slaughter is estimated at 562,000 head, 9,000 head more than a week ago and 63,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.61 ($362.38) and select up $0.48 ($360.19) with a movement of 88 loads (58.86 loads of choice, 7.88 loads of select, 9.05 loads of trim and 11.88 loads of ground beef).
TUESDAY'S CATTLE CALL: Higher. The fact remains that fed cattle supplies are tight, and packers are likely going to need more cattle.
FEEDER CATTLE:
If there's one thing that we were again reminded of throughout Friday's trade, it's how fickle and volatile the cattle complex can be. To the best of our knowledge, the rumor about NWS being detected higher in the US is false, but even so, the market opted to err on the side of panic and think later as the feeder cattle contracts plummeted $6.00 to $8.00 lower through Friday's close. January feeders closed $6.50 lower at $361.92, March feeders closed $8.10 lower at $356.45 and April feeders closed $8.02 lower at $354.90. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week, feeder steers and steer calves sold $1.00 to $7.00 lower, except those weighing 500 to 550 pounds, which traded $10.00 higher. Feeder heifers traded mostly $1.00 to $5.00 higher. Heifer calves over 500 pounds sold $2.00 to $5.00 lower, but those less than 500 pounds traded $3.00 to $8.00 higher. Slaughter cows sold $1.00 to $3.00 lower and slaughter bulls traded $2.00 lower. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 1/15/2026: up $0.73, $370.15.
LEAN HOGS:
The lean hog complex was able to maintain a steady increase through Friday's end, even though the cattle complex faced sharp pressure. February lean hogs closed $0.47 higher at $88.27, April lean hogs closed $0.20 higher at $95.20 and June lean hogs closed $0.42 higher at $107.50. The combination of ample trader support mixed with continued consumer demand helped drive the contracts higher through the week's close. Hog prices averaged $74.78 on the Daily Direct Afternoon Hog Report, with only 376 head being traded and the market's five-day rolling average sitting at $78.75. Pork cutouts totaled 288.47 loads with 247.14 loads of pork cuts and 41.33 loads of trim. Pork cutout values: up $0.03, $93.63. Friday's slaughter is estimated at 479,000 head, 5,000 head less than a week ago and 7,000 head less than a year ago. Saturday's slaughter is projected to be around 171,000 head. The CME lean hog index 1/14/2026: up $0.11, $80.50.
TUESDAY'S HOG CALL: Lower. In recent weeks, packers have hardly been participating in the cash hog market.
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