GENERAL COMMENTS:
The livestock complex is again trading mixed into Thursday's noon hour as traders hope that more fundamental support is going to develop. Still no cash cattle trade has developed, but trade could begin at any point now. March corn is up 3/4 cent per bushel and March soybean meal is up $0.40. The Dow Jones Industrial Average is up 279.50 points and the NASDAQ is down 139.52 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:
The live cattle complex is trading mixed into Thursday's noon hour as traders yearn to push the entire complex higher, but aren't willing to do so in the nearby contracts until they see what's going to develop fundamentally this week. February live cattle is down $0.17 at $234.35, April live cattle is up $0.02 at $235.20 and June live cattle is up $0.15 at $230.22. Still no cash cattle trade has developed, but a single bid is currently on the table in Nebraska at $228. Asking prices are noted at $235 to $238 in the South but are still not clearly established in the North. Trade could begin to develop at any point in time now.
Boxed beef prices are higher: choice up $2.42 ($356.70) and select up $2.47 ($351.75) with a movement of 115 loads (73.63 loads of choice, 12.35 loads of select, 4.07 loads of trim and 24.51 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading in the exact opposite direction of the live cattle complex, as most of its nearby contracts are trading higher, but the deferred months (from August 2026 onward) are trading lower. January feeders are up $1.20 at $360.80, March feeders are up $0.42 at $355.92 and April feeders are up $0.22 at $354.90. Demand in the countryside remains strong as buyers are busying filling orders, as the market was quiet over the last two weeks.
LEAN HOGS:
Seeming to be a bit braver today, the lean hog complex is trading higher into Thursday's noon hour despite technical pressure still being a barrier and pork demand still pulling the cutout value lower. February lean hogs are up $1.25 at $86.05, April lean hogs are up $1.70 at $91.95 and June lean hogs are up $1.22 at $104.75. The real test will come this afternoon, and whether or not traders can keep the contracts higher through the day's close with minimal fundamental support.
The projected lean hog index for 1/7/2026 is down $0.27 at $80.98, and the actual index for 1/6/2026 is down $0.29 at $81.25. Hog prices are again unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 492 head have traded and that the market's five-day rolling average. Pork cutouts total 181.88 loads with 154.09 loads of pork cuts and 27.78 loads of trim. Pork cutout values: down $0.93, $91.36.
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