GENERAL COMMENTS:
It was a rallying day for the livestock complex as all three of the contracts closed higher. Still no cash cattle trade has developed, but it's assumed that later this week, prices will be higher as fundamental support remains incredibly strong and the outlook for 2026 is bullish. March corn is up 2 3/4 cents per bushel and March soybean meal is down $2.60. The Dow Jones Industrial Average is down 166.67 points and the NASDAQ is down 336.92 points.
LIVE CATTLE:
Fueled by a strong fundamental underpinning, the live cattle contracts closed fully higher Tuesday afternoon. More than anything, the strong promise of a fruitful 2026 has the live cattle complex trading higher as traders were pleased to note the bullish Cattle Inventory report released last Friday. It is worth mentioning that the rally recently seen in the live cattle complex has the market trading at the highest level seen since the late October 2025 crash. Still no cash cattle trade has developed, and trade will likely be delayed until the latter half of the week. February live cattle closed $2.15 higher at $240.32, April live cattle closed $2.10 higher at $241.62 and June live cattle closed $2.37 higher at $236.62.
Tuesday's slaughter is estimated at 115,000 head, 3,000 head more than a week ago and 7,000 head less than a year ago.
Boxed beef prices closed higher: choice up $2.50 ($370.71) and select up $2.32 ($367.23) with a movement of 118 loads (93.07 loads of choice, 7.52 loads of select, 8.22 loads of trim and 8.83 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. With supplies of market-ready cattle thin, it's assumed that prices will be higher again this week.
FEEDER CATTLE:
With support seeming to seep into the market from nearly every direction, it was almost easy for the feeder cattle contracts to close higher Wednesday afternoon. March feeders closed $1.57 higher at $367.92, April feeders closed $1.70 higher at $365.87 and May feeders closed $2.05 higher at $362.40. At Joplin Regional Stockyards in Carthage, Missouri, compared to their last sale two weeks ago, feeder steers traded mostly $5.00 to $20.00 higher, with four weights trading as much as $35.00 to $50.00 higher and six weights trading $20.00 to $25.00 higher. Feeder heifers sold mostly $5.00 to $7.00 higher. Feeder cattle supply over 600 pounds was 77%. The CME feeder cattle index 2/2/2026: up $0.60, $375.01.
LEAN HOGS:
Scoring new contract highs thanks to the added support of consumers and an uptick in the cash hog market, the lean hog complex had another splendid day as the market continues to rally. February lean hogs closed $0.80 higher at $88.55, April lean hogs closed $1.52 higher at $98.15 and June lean hogs closed $1.10 higher at $110.87. So long as consumer support remains ample, there's a strong possibility that traders continue to push the contracts higher despite the market already being at new contract highs in its spot April contract.
Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $4.15 with a weighted average price of $86.17 on 4,771 head. Pork cutouts totaled 303.82 loads with 272.58 loads of pork cuts and 31.24 loads of trim. Pork cutout values: up $1.67, $97.37. Tuesday's slaughter is estimated at 487,000 head, 16,000 head more than a week ago and steady with a year ago. The CME lean hog index 1/30/2026: down $0.07, $85.71.
WEDNESDAY'S HOG CALL: Steady/somewhat higher. With consumer demand strong, there's a chance that prices could be steady or trade even higher later this week.
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