GENERAL COMMENTS:
The livestock complex closed fully higher Thursday afternoon as traders were again eager to support the marketplace. Some light cash cattle trade developed in the North at $365, which is $5.00 higher than last week's weighted average. March corn is down 3/4 cent per bushel and March soybean meal is steady. The Dow Jones Industrial Average is up 270.03 points and the NASDAQ is down 104.25 points.
Thursday's export report shared that beef net sales of 10,600 for 2026, which began Jan. 1, were primarily for South Korea (4,400 mt), Mexico (1,600 mt) and Taiwan (1,500 mt). Pork net sales of 27,700 mt for 2026 were primarily for Mexico (12,800 mt), Japan (8,700 mt) and South Korea (2,300 mt).
LIVE CATTLE:
Traders believed that the fed cash cattle market would trade higher, and although we've just seen trade develop thus far in the North, prices are currently trading $5.00 higher than the previous week's weighted average, which is a terrific way to start the 2026 calendar year. February live cattle closed $0.75 higher at $235.27, April live cattle closed $1.05 higher at $236.22 and June live cattle closed $1.25 higher at $231.27. There was some light trade marked this afternoon in Nebraska and Iowa at $365, which is $5.00 higher than last week's weighted average. Asking prices are noted at $235 to $238 in the South, but asking prices are still not established in the North. It's also likely that the complex could trade higher again on Friday, as this afternoon, Texas Ag Commissioner Sid Miller shared that an additional case of New World screwworm was detected in Gonzalez, Tamaulipas, which is just 215 miles away from the Texas border. It's obviously never good to hear news of the spread of NWS, but at the same time, continued detections likely mean that the border won't be reopened anytime soon.
Thursday's slaughter is estimated at 117,000 head, incomparable to last week but 1,000 head less than a year ago.
Boxed beef prices closed higher: choice up $2.51 ($356.79) and select up $2.78 ($352.06) with a movement of 166 loads (106.05 loads of choice, 15.61 loads of select, 6.85 loads of trim and 37.45 loads of ground beef).
FRIDAY'S CATTLE CALL: Higher. Given that packers haven't bought many cattle in recent weeks, that likely means that prices will be higher this week.
FEEDER CATTLE:
The feeder cattle complex closed higher Thursday afternoon as the market simply seemed to follow the direction of the live cattle complex. January feeders closed $2.87 higher at $362.47, March feeders closed $2.22 higher at $357.72 and April feeders closed $1.95 higher at $356.62. At the Colvis Livestock Auction in Clovis, New Mexico, at their mid-session point and when compared to their last sale in December, steer calves weighing 300 to 600 pounds were traded $3.00 to $15.00 lower, except those weighing 350 to 400 pounds and those weighing 550 to 600 pounds, which were trading $5.00 to $18.00 higher. Steer yearlings weighing 600 to 750 pounds sold $14.00 to $21.00 lower, but those weighing 750 to 850 pounds traded steady to $10.00 higher. Heifer calves weighing 300 to 500 pounds sold steady to $5.00 higher, while heifers weighing 500 to 550 pounds sold $10.00 lower and those weighing 550 to 600 pounds traded $20.00 higher. Feeder heifers weighing 600 to 750 pounds sold mostly steady to $18.00 higher. Feeder cattle supply over 600 pounds was 43%. The CME feeder cattle index 1/7/2026: up $4.92, $368.07.
LEAN HOGS:
The lean hog complex closed higher Thursday afternoon as traders continue to yearn to advance the market. It would be easier to do so if the complex's fundamentals would strengthen, but even without robust fundamental support, traders pushed the contracts higher Thursday afternoon. February lean hogs closed $1.07 higher at $85.87, April lean hogs closed $1.65 higher at $91.92 and June lean hogs closed $1.12 higher at $104.65. Hog prices closed $3.24 lower on the Daily Direct Afternoon Hog Report, with a weighted average price of $69.37 on 767 head. Pork cutouts total 384.85 loads with 317.04 loads of pork cuts and 67.81 loads of trim. Pork cutout values: down $1.50, $90.79. Thursday's slaughter is estimated at 496,000 head, incomparable to last week but 13,000 head more than a year ago. The CME lean hog index 1/6/2026: down $0.29, $81.25.
FRIDAY'S HOG CALL: Lower. Packers haven't bought many hogs this week, and they're not likely to start on Friday.
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