GENERAL COMMENTS:
Cattle markets are holding strong triple-digit gains at midday Monday, following the bullish cattle inventory report seen last week. The focus on total cattle numbers slightly lower than the previous year, and total calvings falling 2% in 2025 compared to the previous year, has rekindled the overall bullish buying activity across the entire livestock market. The rebound in financial markets is adding to the buyer interest with Dow Jones markets up over 500 points at times through morning trade, and less focus on economic pressure early in the week is helping stimulate both cattle and hog market buying. March corn is down 4 at $4.243 and March soybean meal is down $0.40 at $293.2. The Dow Jones Industrial Average is up 404.58 at 49,297.05.
LIVE CATTLE:
Live cattle futures surged higher early Monday morning following the bullish news from last week's cattle inventory report. The focus on overall reduction in all cattle numbers and 2025 calvings decreasing by 2% has continued to spark renewed buying support through early trade. Although contracts have backed away from initial highs, the focus on strong early week gains is likely to keep buyers active through the rest of the session. Cash cattle markets look to be a typically quiet Monday with both buyers and sellers busy taking inventory and preparing for the week ahead. Bids and asking prices have yet to be established, and if the trend of the last couple of weeks continues, significant trade volume will be delayed until much later in the week. February live cattle are $2.83 higher at $238.675, April live cattle are $3.28 higher at $240.075 and June live cattle are $3.05 higher at $234.775.
Boxed beef prices are Higher: choice up $2.14 ($367.70) and select up $2.35 ($364.29) with a movement of 32.80 loads (20.27 loads of choice, 4.93 loads of select, 3.40 loads of trim and 4.20 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are leading the market higher Monday morning as renewed focus on tight supplies continues to be seen through the entire cattle complex. The announcement in Friday's cattle inventory report of a 2% drop in calves born during 2025 continues to not only leave current buyers actively looking for cattle to fill yards, but it indicates that the trend will not be changing any time soon. It will be interesting to see how active buyer support remains over the next couple of days and weeks following this bullish report. Although the report gives actual numbers to the market supply tightness, the fact is that the market has already factored in much of the tightness, and this will not change the overall expectations of the beef market over the upcoming months. March feeders are $6.48 higher at $366.75, April feeders are $6.25 higher at $364.525 and May feeders are $5.75 higher at $360.875.
LEAN HOGS:
Lean hog futures have moved actively higher Monday as well. Although the same dynamics seen in the cattle market are not seen in the hog complex, the spill-over bullish support from surging cattle markets and active outside market buying activity has helped to push nearby contracts to triple-digit gains during morning trade. Spot month February futures are holding 80 to 90 cent gains through most of the morning, but the rest of nearby contracts are holding strong triple-digit gains near $2 per cwt through much of the morning. Traders continue to not only gain spill-over support from any beef market support during the year, but continued gains in financial markets are helping to keep hog market traders actively buying in initial February trade. February lean hogs are $0.85 higher at $88.1, April lean hogs are $1.98 higher at $97.125 and May lean hogs are $2.08 higher at $101. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 163.86 loads with 126.44 loads of pork cuts and 37.42 loads of trim. Pork cutout values are up $0.58 at $96.98.
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