GENERAL COMMENTS:
The livestock complex closed higher as trades continue to yearn to push onward. Still no cash cattle trade has developed. March corn is down 1 3/4 cents per bushel and March soybean meal is down $2.70. The Dow Jones Industrial Average is up 253.33 points and the NASDAQ is up 56.21 points.
Thursday's export report shared that beef net sales of 11,200 mt for 2026 were primarily for South Korea (3,800 mt), Japan (2,000 mt) and Mexico (1,700 mt). Pork net sales of 26,800 mt for 2026 were primarily for Mexico (9,200 mt), Japan (5,200 mt) and South Korea (4,100 mt).
LIVE CATTLE:
The live cattle complex was able to close mildly higher Thursday afternoon, as traders have hope that when cash cattle do trade this week, prices will indeed be higher. There's yet to be any trade developed, but there was a major packer who called in to Nebraska offering $365 and that bid was passed on. Otherwise, both bids and asking prices remain elusive at this point. February live cattle closed $0.90 higher at $236.05, April live cattle closed $1.10 higher at $238.42 and June live cattle closed $1.57 higher at $233.90. From a technical standpoint, the market is currently hovering below its resistance threshold and won't likely challenge that price point until something more substantial develops fundamentally. Thursday's slaughter is estimated at 117,000 head, steady with a week ago and 4,000 head less than a year ago.
I do want to highlight that this afternoon, Texas Ag Commissioner Sid Miller shared in a statement that eight new cases of New World screwworm have been detected in the state of Tamaulipas, which borders Texas. The press release stated that, "It's just plain cowboy logic--when you're seeing this many cases, this fast, it tells you there may be established screwworm fly populations in Tamaulipas," Commissioner Miller said. "We're grateful sterile fly deployment has begun but make no mistake: Texas producers need to stay on high alert along our border." Understanding how NWS affects the market is two-pronged because every time there's an announcement of another confirmed case in Mexico, the market will likely affect the market bullishly as that likely means that the border will remain closed for some time to Mexican cattle imports. But if there were to be a confirmed case here in the U.S., that would obviously affect the market bearishly.
Boxed beef prices closed higher: choice up $2.24 ($360.77) and select up $2.06 ($359.71) with a movement of 150 loads (116.78 loads of choice, 8.23 loads of select, 16.68 loads of trim and 8.56 loads of ground beef).
FRIDAY'S CATTLE CALL: Higher. Packers are short on cattle and can't afford to be overly short going into the upcoming season, where supplies are going to be thin.
FEEDER CATTLE:
The feeder cattle complex only grew stronger and stronger throughout Thursday's trade as traders remain hopeful of the fundamental support that's likely to come. Not to mention, there's a chance that traders caught wind of the new confirmed cases of NWS in Mexico, which could have also helped the contracts scale higher. January feeders closed $3.67 higher at $368.42, March feeders closed $4.85 higher at $364.55 and April feeders closed $4.75 higher at $362.92. At the Clovis Livestock Auction in Clovis, New Mexico, compared to last week and at their mid-session point, steer calves weighing 350 to 600 pounds sold $13.00 to $20.00 higher and feeder steers weighing 600 to 850 pounds were trading $10.00 to $20.00 higher, except those weighing 750 to 800 pounds, which sold $8.00 lower. Feeder cattle supply over 600 pounds was 56%. The CME feeder cattle index 1/14/2026: down $0.42, $369.42.
LEAN HOGS:
The lean hog complex had a spectacular day as the contracts shot higher, thanks to continued trade support and higher pork demand. February lean hogs closed $2.10 higher at $87.80, April lean hogs closed $2.30 higher at $95.00 and June lean hogs closed $1.80 higher at $107.07. The biggest daily advancement in the afternoon cutout report was seen in the loin, which jumped $4.38 higher. Hog prices are again not available on the Daily Direct Afternoon Hog Report because of confidentiality. However, we were able to see that only 305 head traded throughout the day and that the market's five-day rolling average sits at $75.73. Pork cutouts totaled 270.19 loads with 244.56 loads of pork cuts and 25.63 loads of trim. Pork cutout values: up $2.31, $93.60. Thursday's slaughter is estimated at 492,000 head, 7,000 head more than a week ago and 9,000 head more than a year ago. The CME lean hog index 1/13/2026: down $0.11, $80.39.
FRIDAY'S HOG CALL: Lower. Packers aren't seeming to buy in the cash market and it's unlikely to change on Friday.
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