GENERAL COMMENTS:
The livestock complex closed mixed as the cattle contracts closed slightly higher, but lean hog contracts ended the day mixed. Throughout the day, Southern live cattle traded anywhere from $233 to $236, which is steady to $2.00 higher than last week's weighted average, and Northern dressed cattle traded at mostly $370, which is $5.00 higher than last week's weighted average. March corn is up 6 1/2 cents per bushel and March soybean meal is up $3.70. The Dow Jones Industrial Average is down 285.30 points and the NASDAQ is up 65.22 points.
Friday's export report shared that beef net sales of 15,400 mt for 2026 were primarily for Hong Kong (3,700 mt), Japan (3,100 mt) and Mexico (2,500 mt). Pork net sales of 33,200 mt for 2026 were primarily for Mexico (11,800 mt), South Korea (5,100 mt) and Japan (3,400 mt).
LIVE CATTLE:
Between noting the morning's export sales report, finally seeing some cash cattle trade develop, and noting the day's Cattle on Feed report, there was plenty to mull over in the cattle complex today.
Although it took until the week's bitter end for traders to jump into gear and fully support the complex, Friday saw a substantial technical jump as traders were pleased to see fed cash cattle prices trade higher. February live cattle closed $2.52 higher at $234.90, April live cattle closed $2.10 higher at $236.92 and June live cattle closed $1.60 higher at $232.50. Throughout the day, Southern live cattle traded anywhere from $233 to $236, which is steady to $2.00 higher than last week's weighted average, and Northern dressed cattle traded at mostly $370, which is $5.00 higher than last week's weighted average.
Friday's slaughter is estimated at 84,000 head, 8,000 head less than a week ago and 15,000 head less than a year ago. Saturday's slaughter is projected to be around 4,000 head. The week's total slaughter is estimated at 535,000 head, 27,000 head less than a week ago and 58,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.47 ($368.92) and select up $0.66 ($362.39) with a movement of 123 loads (82.07 loads of choice, 11.97 loads of select, 8.43 loads of trim and 20.37 loads of ground beef).
MONDAY'S CATTLE CALL: Higher. With fed cattle supplies thin, packers will likely need to buy aggressively again in next week's market.
FEEDER CATTLE:
The feeder cattle complex didn't see the gains the live cattle market did, but its market was able to close higher nonetheless. But in patiently waiting to see what the afternoon's Cattle on Feed report was going to unveil, traders helped the feeder cattle contracts just slightly above steady prices. January feeders closed $1.07 higher at $364.80, March feeders closed $0.90 higher at $360.17 and April feeders closed $0.80 higher at $358.75. The Cattle on Feed report was truly a mixed bag to absorb, as some parts of the report were bullish, but other parts weren't as bullish as one would have assumed they would be. It's likely that on Monday morning, traders find the report to be neutral at best. DTN's USDA Jan. 1 Cattle on Feed Report:
The Oklahoma Weekly Cattle Auction Summary shared that compared to last week, feeder steers and steer calves traded $3.00 to $7.00 lower and feeder heifers traded $1.00 to $3.00 lower. Heifer calves weighing over 450 pounds sold $6.00 to $11.00 lower, but heifers under 450 pounds traded $20.00 to $25.00 lower. Slaughter cows traded steady to $2.00 lower, and slaughter bulls traded $2.00 lower. The sale report did note that, "caution defined this week's trend as buyers pulled back ahead of an upcoming winter storm that is expected to bring heavy snow and ice." Feeder cattle supply over 600 pounds was 65%. The CME feeder cattle index 1/22/2026: down $1.75, $363.48.
LEAN HOGS:
The lean hog complex closed mixed with its nearby contracts ending the day slightly lower, while the deferred months maintained a higher position. February lean hogs closed $0.12 lower at $88.35, April lean hogs closed $0.17 lower at $96.17 and June lean hogs closed $0.12 lower at $108.50. More than anything, it seemed as though the nearby lean hog contracts ran into some technical exhaustion ahead of the weekend, which put a damper on their recent rally. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.47 with a weighted average price of $83.56 on 1,001 head and a five-day rolling average of $83.45. Pork cutouts totaled 283.85 loads with 255.69 loads of pork cuts and 28.16 loads of trim. Pork cutout values: up $1.13, $95.75. Friday's slaughter is estimated at 438,000 head, 41,000 head less than a week ago and 48,000 head less than a year ago. Saturday's slaughter is projected to be around 160,000 head. The CME lean hog index 1/21/2026: up $0.67, $83.07.
MONDAY'S HOG CALL: Steady. Packers haven't been buying much in the cash hog market, and that won't likely change on Monday.
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