GENERAL COMMENTS:
The livestock complex closed mostly lower Friday afternoon as traders were mindful of the decline in the equity markets and were anxious to see what was going to be unveiled in Friday's Cattle Inventory report. Thankfully, both the Cattle Inventory report and fed cash cattle prices were supportive to the marketplace. March corn is down 2 1/2 cents per bushel and March soybean meal is down $2.40. The Dow Jones Industrial Average is down 179.09 points and the NASDAQ is down 223.30 points.
From Friday to Friday, livestock futures scored the following changes: February live cattle up $0.95, April live cattle down $0.13; March feeder cattle up $0.10, April feeder cattle down $0.47; February lean hogs down $1.10, April lean hogs down $1.02; March corn down $0.02, May corn down $0.02.
LIVE CATTLE:
What a day, what a day, what a day it was! The market sat on pins and needles waiting for some fed cash cattle to trade, and ultimately sat anxious waiting to see what was unveiled in the Cattle Inventory report. Thankfully, both of those topics ended up boding well for the cattle sector as fed cash cattle prices were higher, and the Cattle Inventory report showed the seventh consecutive decline in beef cow numbers since the liquidation phase of the cycle started back in 2019. Click here to read DTN's comments regarding the Cattle Inventory report:
February live cattle closed $0.35 higher at $235.85, April live cattle closed $0.47 lower at $236.80 and June live cattle closed $1.55 lower at $231.72. Southern live cattle were marked at $238 to $240, which is $3.00 to $5.00 higher than the previous week's weighted average, and Northern dressed cattle traded at mostly $375 to $378, which is $6.00 to $9.00 higher than the previous week's weighted average.
Friday's slaughter is estimated at 93,000 head, 9,000 head more than a week ago but 22,000 head less than a year ago. Saturday's slaughter is projected to be around 2,000 head. The week's total slaughter is estimated at 531,000 head, 4,000 head less than a week ago and 70,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $2.10 ($365.56) and select up $1.22 ($361.94) with a movement of 95 loads (68.58 loads of choice, 6.14 loads of select, 5.07 loads of trim and 15.55 loads of ground beef).
MONDAY'S CATTLE CALL: Higher. Although prices were higher today, packers are still likely short bought and will need more cattle in the week ahead.
FEEDER CATTLE:
The feeder cattle complex fed off the live cattle market's anxious state and closed a noticeable $4.00 lower throughout most of its contracts, awaiting to see what was going to develop in today's Cattle Inventory report. Well, thankfully, that report was bullish for the industry, and traders will likely be able to settle their nervous tone on Monday. March feeders closed $4.85 lower at $360.27, April feeders closed $4.95 lower at $358.27 and May feeders closed $4.85 lower at $355.12. At the Herreid Livestock Market in Herreid, South Dakota, compared to their last sale two weeks ago, the best test on steers was on those weighing 600 to 649 pounds, which traded mostly steady, but steers weighing 700 to 749 pounds traded $7.00 to $10.00 higher, with instances up to $25.00 higher. Heifers across the board traded mostly steady. Feeder cattle supply over 600 pounds was 85%. The CME feeder cattle index 1/29/2026: up $4.00, $370.69.
LEAN HOGS:
More than anything, the lean hog complex fell lower Friday afternoon as traders pulled back some of their support upon seeing the equity markets trade lower. February lean hogs closed $0.45 lower at $87.25, April lean hogs closed $0.30 lower at $95.15 and June lean hogs closed $0.50 lower at $107.92. But with the continued support of strong consumer interest, there's a chance that traders will be more supportive come Monday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.81 with a weighted average price of $83.57 on 1,833 head. Pork cutouts totaled 304.07 loads with 264.66 loads of pork cuts and 39.41 loads of trim. Pork cutout values: up $0.79, $94.22. Friday's slaughter is estimated at 486,000 head, 59,000 head more than a week ago and 10,000 head more than a year ago. Saturday's slaughter is projected to be around 171,000 head. The CME lean hog index 1/28/2026: up $0.50, $85.72.
MONDAY'S HOG CALL: Steady. Packers will likely show minimal interest in the cash market on Monday.
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