GENERAL COMMENTS:
The livestock complex ran into the first full trading week of 2026 with a bang as all three of the markets closed mostly higher. March corn is up 7 cents per bushel and March soybean meal is up $3.90. New showlists appear to be somewhat higher in Kansas, but higher in Texas, and Nebraska/Colorado. The Dow Jones Industrial Average is up 594.79 points and the NASDAQ is up 160.19 points.
LIVE CATTLE:
The live cattle complex closed mostly higher Monday afternoon as traders remain enthusiastic about the year ahead and what's to come for the cattle complex. February live cattle closed $0.12 lower at $235.87, April live cattle closed $0.82 higher at $236.80 and June live cattle closed $1.07 higher at $231.42. What continues to be important to monitor in the cattle complex is the 100-day moving average, as that's been a significant technical resistance point for the complex ever since the market plummeted in October. But last Friday (1/2/2026), the complex broke above that threshold and has maintained a position over that point ever since. New showlists appear to be somewhat higher in Kansas, but higher in Texas, and Nebraska/Colorado.
Monday's slaughter is estimated at 115,000 head, 3,000 head less than a week ago and 7,000 head more than a year ago.
Boxed beef prices closed higher: choice up $3.73 ($353.70) and select up $4.58 ($351.50) with a movement of 118 loads (79.82 loads of choice, 17.56 loads of select, 7.17 loads of trim and 13.94 loads of ground beef).
TUESDAY'S CATTLE CALL: Higher. Given that packers haven't bought very aggressively in recent weeks, it's likely that they'll need to pay more this upcoming week for cattle.
FEEDER CATTLE:
The feeder cattle complex continued to rally aggressively through Monday's close as traders know that the market is most likely going to remain bullish through 2026 as supplies are expected to remain thin. January feeders closed $2.87 higher at $358.97, March feeders closed $2.62 higher at $355.57 and April feeders closed $2.65 higher at $354.90. It was especially interesting to note some of the prices on feeder cattle sales in the countryside today, as it's been more than two weeks since the market was last tested. At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to their last sale in December, feeder steers were trading $3.00 to $8.00 higher, but steers over 800 pounds were trading mostly steady. Feeder heifers were trading mostly $10.00 to $15.00 higher. Steer calves were selling $15.00 to $25.00 higher. Heifer calves over 500 pounds were trading mostly steady, but heifers over 500 pounds were selling $20.00 higher. Feeder cattle supply over 600 pounds was 45%. The CME feeder cattle index 1/2/2026: up $2.89, $353.11.
LEAN HOGS:
The lean hog complex had a breakout move throughout the day as traders ran the spot February contract sharply higher, and slightly above the market's resistance threshold at $86.00. February lean hogs closed $2.05 higher at $86.15, April lean hogs closed $2.40 higher at $91.50 and June lean hogs closed $1.95 higher at $104.32. And even though pork cutout values closed a tick lower this afternoon, traders pushed the complex higher without batting an eye. Hog prices on the Daily Direct Afternoon Hog Report averaged $66.36, ranging from $57.00 to $69.50 on 1,710 head. Pork cutouts totaled 408.23 loads with 367.40 loads of pork cuts and 40.83 loads of trim. Pork cutout values: down $0.73, $93.84. Monday's slaughter is estimated at 498,000 head, 48,000 head more than a week ago and 53,000 head more than a year ago. The CME lean hog index 12/31/2025: down $0.40, $81.85.
TUESDAY'S HOG CALL: Higher. After the long holiday break, packers will likely need to buy more hogs in this week's cash market.
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