GENERAL COMMENTS:
The livestock complex is trading mixed into midday Thursday as the live cattle market is trailing slightly lower, seeming to wait for the week's fed cash cattle trade to develop. Meanwhile, most of the lean hog and nearby feeder cattle contracts are trading higher. March corn is up 1/2 cent per bushel and March soybean meal is down $1.50. The Dow Jones Industrial Average is down 8.36 points and the NASDAQ is down 330.77 points.
Thursday's export report shared that beef net sales of 16,900 mt for 2026 were primarily for South Korea (7,600 mt), Japan (4,900 mt) and Hong Kong (1,800 mt). Pork net sales of 56,000 mt for 2026 were primarily for Mexico (28,300 mt), China (15,900 mt) and Japan (3,800 mt).
LIVE CATTLE:
Seeming to merely hold its breath waiting for some fed-cash cattle trade to develop, the live cattle contracts are trading slightly lower, unwilling to advance any higher and pressure the market's resistance without first seeing what's going to develop fundamentally in the fed cash cattle market. February live cattle are down $0.70 at $236.12, April live cattle are down $0.67 at $238.05 and June live cattle are down $0.40 at $234.05. A single bid is currently on the table in Nebraska at $232, but still no cattle have traded and asking prices aren't firmly established yet this week either. It's most likely that trade will be delayed until Friday.
Boxed beef prices are lower: choice down $0.21 ($369.53) and select down $3.19 ($360.38) with a movement of 67 loads (44.55 loads of choice, 4.73 loads of select, 8.87 loads of trim and 8.70 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is a mixed bag this morning as the nearby contracts are scaling higher while the market's deferred contracts are trailing slightly lower. March feeders are up $0.87 at $366.72, April feeders are up $0.45 at $364.75 and May feeders are up $0.10 at $361.25. The spot March feeder cattle contract is trading at the highest level it's been at since the market's sharp sell-off in late October.
LEAN HOGS:
With the help of a strong export sales report this morning, the lean hog complex is back to trading higher following Wednesday's lower close. April lean hogs are up $0.52 at $95.67, June lean hogs are up $0.65 at $108.55 and July lean hogs are up $0.60 at $109.47. It is also helpful from a technical standpoint, the market is no longer up against resistance thresholds, and from a fundamental standpoint that morning pork cutout values are a tick higher as well.
The projected lean hog index for 1/28/2026 is up $0.26 at $85.48, and the actual index for 1/27/2026 is up $0.79 at $85.22. Hog prices on the Daily Direct Morning Hog Report average $84.38, ranging from $79.00 to $85.00 on 1,345 head and a five-day rolling average of $83.52. Pork cutouts total 151.59 loads with 132.89 loads of pork cuts and 18.70 loads of trim. Pork cutout values: up $3.68, $98.73.
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