GENERAL COMMENTS:
The livestock complex didn't see much action throughout Friday's trade as there had yet to be cattle traded in the South, and most of the livestock contracts closed lower. If packers don't buy cattle in the South later this afternoon, next week's market could be interesting to watch as prices may need to be notably higher. March corn is down 1/4 cent per bushel and March soybean meal is up $0.10. The Dow Jones Industrial Average is up 237.96 points and the NASDAQ is up 191.33 points.
From Friday to Friday, livestock futures scored the following changes: February live cattle down $2.28, April live cattle down $1.30; January feeder cattle up $4.63, March feeder cattle up $1.75; February lean hogs up $1.20, April lean hogs $2.68; March corn up $0.08, May corn up $0.08.
LIVE CATTLE:
The live cattle complex rounded out the day fully lower, as the market seemed to be managing two competing arguments within its own marketplace. On one hand, what we've seen of the fed cash cattle market is positive, as on Thursday afternoon dressed cattle were traded at $365, which is $5.00 higher than the previous week's weighted average. And although no live cattle have traded yet in the South, seeing a bold resistance from feedlot managers to not accept cheap bids is a positive signal long-term, as at some point, packers will have to pay up and get more cattle bought. But on the other hand, the market's technical story seems to be one of mild exhaustion, and without seeing robust fundamental support, traders elected to simply let the contracts drift lower through the day's end. February live cattle closed $1.55 lower at $233.72, April live cattle closed $1.55 lower at $234.67 and June live cattle closed $1.52 lower at $229.75. Bids are currently on the table in the South, but still no sales have been reported.
Friday's slaughter is estimated at 86,000 head, 30,000 head less than a week ago and 20,000 head less than a year ago. Saturday's slaughter is projected at 2,000 head. The week's total slaughter is estimated at 553,000 head, incomparable to the previous week but 38,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $1.16 ($355.63) and select up $0.11 ($352.17) with a movement of 118 loads (88.96 loads of choice, 6.70 loads of select, 8.34 loads of trim and 14.08 loads of ground beef).
MONDAY'S CATTLE CALL: Higher. Given that this week's movement was thin, it's reasonable to assume that next week's fed cash cattle prices could be higher again.
FEEDER CATTLE:
And once again, in keeping with the trend of the live cattle complex, the feeder cattle contracts also rounded out the day lower. January feeders closed $1.75 lower at $360.72, March feeders closed $3.02 lower at $354.70 and April feeders closed $3.57 lower at $353.05. The Oklahoma Weekly Cattle Auction Summary shared that compared to their last full market test in December, feeder steers over 750 pounds traded $10.00 higher, but steers under 750 pounds sold $15.00 to $20.00 higher. Feeder heifers traded $5.00 to $8.00 higher. Stocker heifers sold $12.00 to $16.00 higher. Steer calves sold $20.00 to $40.00 higher, heifer calves sold $12.00 to $18.00 higher. Slaughter cows sold steady to $2.00 higher and slaughter bulls traded $2.00 higher. Feeder cattle supply over 600 pounds was 56%. The CME feeder cattle index 1/8/2026: down $0.17, $367.90.
LEAN HOGS:
The lean hog contracts closed the day mixed, with the nearby contracts unwilling to advance without seeing better fundamental support, but the deferred contracts still closed higher. February lean hogs closed $0.57 lower at $85.30, April lean hogs closed $0.15 lower at $91.77 and June lean hogs closed $0.07 higher at $104.72. It was strange this past week that packers bought very few hogs in the cash market. We will have to see what their buying behavior looks like next week. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.29 with a weighted average price of $68.08 on 1,026 head. Pork cutouts totaled 338.02 loads with 229.79 loads of pork cuts and 38.23 loads of trim. Pork cutout values: up $1.53, $92.32. Friday's slaughter is estimated at 484,000 head, 7,000 head more than a week ago and 18,000 head more than a year ago. The CME lean hog index 1/7/2026: down $0.27, $80.98.
MONDAY'S HOG CALL: Higher. Given that packers didn't buy many hogs this week, it likely means that they'll need to be more aggressive next week.
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