Wednesday Closing Livestock Market Update - Traders Let Contracts Fall Lower

GENERAL COMMENTS:

The livestock complex closed mostly lower Wednesday afternoon as traders didn't see the support they needed develop throughout the day. Still no cash cattle trade has developed. March corn is up 2 3/4 cents per bushel and March soybean meal is up $5.90. The Dow Jones Industrial Average is down 466.00 points and the NASDAQ is up 37.10 points.

LIVE CATTLE:

All in all, the live cattle complex's day can be summarized as follows: traders yearn to trade the contracts higher, but until immediate fundamental support develops, prices are likely to trade steady, if not a tick lower, as traders don't want to technically overdo the market's rally. February live cattle closed $2.10 lower at $234.52, April live cattle closed $2.20 lower at $235.17 and June live cattle closed $2.05 loads at $230.02. Still no cash cattle trade developed throughout the day, but asking prices are noted at $235 to $237 in the South. 

Wednesday's slaughter is estimated at 115,000 head, incomparable to last week but 8,000 head less than a year ago.

Boxed beef prices closed mixed: choice up $3.03 ($354.28) and select down $1.80 ($349.28) with a movement of 139 loads (103.05 loads of choice, 14.39 loads of select, 4.99 loads of trim and 16.20 loads of ground beef).

THURSDAY'S CATTLE CALL: Higher. With packers having not bought many cattle over the last two weeks, prices will likely be higher this week.

FEEDER CATTLE:

The feeder cattle complex also closed lower as traders simply weren't willing to advance the feeder cattle contracts, all while seeing the live cattle contracts scale slightly lower. And as traders looked back and saw the sizeable rally in which the market has successfully posted over the last two weeks, hitting the pause button on the market didn't seem like a bad option. January feeders closed $2.57 lower at $359.60, March feeders closed $3.52 lower at $355.50 and April feeders closed $3.45 lower at $354.67. At the Winter Livestock Auction in La Junta, Colorado, compared to their last sale in December, feeder steers traded mostly $4.00 to $5.00 higher, but sharply higher instances were noted. Feeder heifers sold sharply higher across all weight groups. Feeder cattle supply over 600 pounds was 60%. The CME feeder cattle index 1/6/2026: up $0.78, $363.15.

LEAN HOGS:

The lean hog complex also closed lower as traders ran into some resistance pressure. February lean hogs closed $0.87 lower at $84.80, April lean hogs closed $1.30 lower at $90.27 and June lean hogs closed $0.75 lower at $103.52. But it was supportive to note the slight uptick in pork cutout values, which largely stemmed from the market's $3.19 jump in the rib. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $3.75 with a weighted average price of $71.61 on 933 head. Pork cutouts totaled 330.57 loads with 295.81 loads of pork cuts and 34.76 loads of trim. Pork cutout values: up $1.04, $92.29. Wednesday's slaughter is estimated at 496,000 head, incomparable to last week but 12,000 head more than a year ago. The CME lean hog index 1/5/2026: down $0.08, $81.54.

THURSDAY'S HOG CALL: Steady. Packers haven't shown the cash hog market much interest this week, and there's a chance that they won't buy much more later this week either.

Wednesday Midday Livestock Market Summary - Traders Yearn to See More Fundamental Support

GENERAL COMMENTS:

Without enough fundamental support having developed, the livestock complex is trading lower into midday Wednesday. There's a single bid currently being offered in Kansas, but still no cash cattle trade has developed. March corn is up 2 1/2 cents per bushel and March soybean meal is up $5.80. The Dow Jones Industrial Average is down 95.17 points and the NASDAQ is up 161.12 points.

LIVE CATTLE:

Traders are continuing to let the live cattle contracts trade in a slightly lower manner as the market needs to see more immediate fundamental support before traders will feel confident trading the contracts any higher. February live cattle are down $1.67 at $234.90, April live cattle are down $1.82 at $235.55 and June live cattle are down $1.77 at $230.30. But even with the market's slight regression, the live cattle contracts are still currently trading above the market's 100-day moving average. A single bid of $232 is currently on the table in Kansas, but no trade has developed yet. Asking prices are firm in the South at $235 to $237, but are still not established in the North.

Boxed beef prices are mixed: choice up $1.22 ($352.47) and select down $0.31 ($350.77) with a movement of 87 loads (63.12 loads of choice, 6.90 loads of select, 4.01 loads of trim and 13.04 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is also trading lower, seeming to simply follow the direction of the live cattle complex. January feeders are down $2.05 at $360.12, March feeders are down $3.02 at $356.00 and April feeders are down $3.02 at $355.10. Today's lower action is a technical decision, not a good representation of what's transpiring in the countryside, as feeder cattle prices are on fire both on Monday and Tuesday.

LEAN HOGS:

Although midday pork cutout values are a tick higher, the lean hog complex is still trading lower as traders yearn to see more fundamental support. The market is running into some resistance pressure that is binding its upward momentum, and until something substantial develops fundamentally, the market could be pressured to trade sideways, if not somewhat lower. February lean hogs are down $0.75 at $84.92, April lean hogs are down $1.10 at $90.50 and June lean hogs are down $0.55 at $103.72.

The projected lean hog index for 1/6/2026 is down $0.29 at $81.25, and the actual index for 1/5/2026 is down $0.08 at $81.54. Hog prices again aren't available on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 423 head have traded. Pork cutouts totaled 167.85 loads with 147.69 loads of pork cuts and 20.16 loads of trim. Pork cutout values: up $1.48, $92.73.

Wednesday Morning Livestock Market Update - Traders Are Confident Over Higher Cash Cattle Trade

GENERAL COMMENTS:

Live cattle futures closed higher and were supported by the strength of feeder cattle. Feeder cattle continue to push higher due to strong cash prices being paid at auctions and the impact of finding the New World screwworm (NWS) in the buffer zone in Mexico, putting the resumption of imports on hold indefinitely. Traders are optimistic over higher cash cattle trade this week, as packers have purchased a limited amount of cattle over the past few weeks. Boxed beef prices took a hit with choice down $2.45 and select down $0.42. But that was far from removing the gains seen on Monday in boxed beef.

Hog futures closed mixed, with the July and later contracts closing at new highs. The strength in hogs seems to be psychologically driven rather than fundamentally driven. However, the National Daily Direct Afternoon Hog report showed packers stepping up aggressively to purchase hogs, with the weighted average price jumping $10.00. Packers had been purchasing a limited volume of hogs through the holidays, but needed to get down to their usual business. Pork cutout values did not follow the same direction and closed down $2.59, with lower prices in all categories.

	BULL SIDE		BEAR SIDE
1)	Feeder cattle futures continue to push higher, supported by strong buying interest in the cash market in the country.	1)	Live cattle futures may have higher cash trade factored in and may settle back once cash trading takes place.
2)	Traders anticipated a higher cash trade this week, as packers will need cattle due to limited purchases over the past few weeks.	2)	Feeder cattle futures are overbought and may see a retracement to close the chart gaps below the market.
3)	The July and later hog futures continue to make new contract highs. Traders are bullish later in the year, anticipating increased pork demand.	3)	Hog market fundamentals do not suggest continued higher prices. This may limit the upside potential.
4)	Packers may be aggressive again today as they need to purchase more hogs to maintain the increased slaughter pace and purchase some ahead.	4)	Retail outlets may have replenished their pork supplies, resulting in limited strength in pork cutouts for the time being.

Tuesday Closing Livestock Market Update - Traders Continue to Push Cattle Contracts Higher

GENERAL COMMENTS:

The livestock complex closed mostly higher Tuesday afternoon as traders are eager to support the contracts early this week. Still no cash cattle trade has developed. March corn is down 1/2 cent per bushel and March soybean meal is down $0.40. The Dow Jones Industrial Average is up 484.90 points and the NASDAQ is up 151.35 points.

LIVE CATTLE:

Nothing besides a slow and steady upward trend developed throughout Tuesday's trade as the market yearns to trade higher, but traders didn't want to overdo the upward push from a technical standpoint. February live cattle closed $0.75 higher at $236.62, April live cattle closed $0.57 higher at $237.37 and June live cattle closed $0.65 higher at $232.07. No cash cattle trade developed throughout the day, and both bids and asking prices remain elusive at this point. 

Tuesday's slaughter is estimated at 118,000 head, 4,000 head less than a week ago and 7,000 head less than a year ago.

Boxed beef prices closed lower: choice down $2.45 ($351.25) and select down $0.42 ($351.08) with a movement of 166 loads (128.81 loads of choice, 17.46 loads of select, 9.01 loads of trim and 10.70 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Higher. With packers having not bought many cattle in recent weeks, prices will likely be higher again this week.

FEEDER CATTLE:

The feeder cattle complex again closed higher this afternoon, with an impressive $3.00 rally seen across all the feeder cattle contracts this afternoon. January feeders closed $3.20 higher at $362.17, March feeders closed $3.45 higher at $359.02 and April feeders closed $3.22 higher at $358.12. Currently, the spot March feeder cattle contract is just a little more than $20.00 away from the contract's peak, scored in October. At the Joplin Regional Stockyards in Carthage, Missouri, compared to last week, feeder steers sold $3.00 to $12.00 higher, with the heavy four weights and light five weights trading $40.00 to $50.00 higher. Feeder heifers under 650 pounds traded $12.00 to $40.00 higher, with the heavier weights selling $5.00 to $8.00 higher. Feeder cattle supply over 600 pounds was 66%. The CME feeder cattle index 1/5/2026: up $9.06, $362.17.

LEAN HOGS:

Although pork cutout values closed lower, the lean hog complex saw most of its contract come around and close just above steady prices ahead of Tuesday's end. February lean hogs closed $0.47 higher at $85.67, April lean hogs closed $0.07 higher at $91.57 and June lean hogs closed $0.05 lower at $104.27. And although pork cutout values may have dipped, it was impressive to see that this afternoon saw a movement of 419.13 loads. Hog prices closed $10.00 higher on the Daily Direct Afternoon Hog Report, with a weighted average price of $76.36 on 1,453 head. Pork cutouts totaled 419.13 loads with 368.78 loads of pork cuts and 50.35 loads of trim. Pork cutout values: down $2.59, $91.25. Tuesday's slaughter is estimated at 495,000 head, 3,000 head more than a week ago and 6,000 head more than a year ago. The CME lean hog index 1/2/2026: down $0.23, $81.62.

WEDNESDAY'S HOG CALL: Higher. Packers still haven't bought many hogs this week, and they likely need to secure more inventory.