Wednesday Midday Livestock Market Update - Traders Continue to Let Contracts Trade Mildly Higher

GENERAL COMMENTS:

The livestock complex is trading mostly higher into midday Wednesday as traders remain eager to support the marketplace. No cash cattle trade has developed, but a single bid is currently being offered in Kansas at $233. March corn is down 1 3/4 cents per bushel and March soybean meal is down $0.00. The Dow Jones Industrial Average is up 261.56 points and the NASDAQ is up 37.27 points.

LIVE CATTLE:

The live cattle complex continues to trade mildly higher as the market is in a bit of a sweet spot. Currently, traders can allow the contracts to climb slightly higher without fears of immediate resistance pressure following last week's sharp decline. But at the same time, traders don't feel pressure to trade the contracts sharply higher as no cash cattle trade has developed yet. There is currently a single big on the table in Kansas at $233, but as of this point, no business has developed and asking prices remain elusive. February live cattle are up $0.57 at $232.95, April live cattle are up $0.30 at $234.87 and June live cattle are up $0.25 at $230.85.

Boxed beef prices are higher: choice up $1.42 ($366.18) and select up $2.41 ($362.25) with a movement of 91 loads (55.81 loads of choice, 8.47 loads of select, 6.97 loads of trim and 19.48 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is again trading in the same manner as the live cattle market, as its contracts are also trading moderately higher. January feeders are up $1.27 at $363.90, March feeders are up $1.25 at $358.92 and April feeders are up $1.22 at $357.67. So long as the live cattle complex continues to trade higher this afternoon, the feeder cattle contracts should be able to close higher as well.

LEAN HOGS:

The lean hog complex is trading mostly sideways, keeping a slightly higher tone but unwilling to advance the market without seeing stronger fundamental support. Yes, midday pork cutout values are higher, which is a perk, but at the same time, the cash market remains a fickle one to watch as movement in the cash complex has been relatively thin. February lean hogs are down $0.10 at $87.75, April lean hogs are up $0.07 at $95.25 and June lean hogs are up $0.07 at $108.15.

The projected lean hog index for 1/20/2026 is up $0.37 at $82.40 and the actual index for 1/19/2026 is up $0.27 at $82.03. Hog prices are again unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that 2,405 head have traded this morning. Pork cutouts total 138.67 loads with 122.29 loads of pork cuts and 16.37 loads of trim. Pork cutout values: up $0.94, $94.41.

Wednesday Morning Livestock Market Summary - Cattle Futures Fought for Tuesday's Small Gains

GENERAL COMMENTS:

Tuesday was a volatile day of trading for live cattle and feeder cattle markets after Friday's sharp downward turn. Rumors of New World screwworm bring uncertainty as more and more cases approach the border. Fundamentally not much has changed to adjust demand or herd size, but the number of funds investing in the livestock sector shows how much momentum we have to lose if the big money gets nervous. The feeder cattle index fell $1.26 Tuesday as a reflection of the price action seen in the futures market Friday. It is expected to recover some midweek.

Hog futures were mixed to start out the trading week. The nearby months traded lower to unchanged while the deferred months were higher. Meat demand in general is strong and with the funds still buying lean hog futures contracts, the trend is expected to continue higher.

	BULL SIDE		BEAR SIDE
1)	The Commitment of Traders report shows funds still actively buying live cattle futures as well as lean hog futures. The momentum is on the producer's side as the big money is wanting to invest in commodities and cattle and hogs have the demand story.	1)	New World screwworm was not found in the United States despite rumors last week. However, the fear is out there in the market and those with big, long positions are on edge as new cases approach the border every day.
2)	The newly released food pyramid released last week shows a focus of whole foods, lean meats and healthy fats. Consumer bias has proven to follow recommended guidelines in the past and the future looks bright for meat demand.	2)	The official closing of the Lexington, Nebraska, facility and the Amarillo, Texas, plant cutting hours is not great news for the cattle markets. With less processing capacity, this will put pressure on kill numbers.
3)	Hog futures are showing more long-term optimism despite a day of less nearby support.	3)	Hog futures have been on a roll lately making new highs. Profit taking is likely as traders have had a nice run of this rally and want to reward the market.
4)	Slaughter numbers are strong for hogs year over year and that is expected to continue into the second quarter.	4)	Hog traders are closely watching slaughter numbers and waiting for a pullback in cutout values.

Tuesday Closing Livestock Market Update - Contracts Close Mostly Higher

GENERAL COMMENTS:

The livestock complex closed mostly higher as traders have been eager to advance the contracts. Still no cash cattle trade has developed, and it's likely trade won't develop until Thursday or Friday. March corn is down 1 cent per bushel and March soybean meal is up $1.60. The Dow Jones Industrial Average is down 870.74 points and the NASDAQ is down 561.07 points.

LIVE CATTLE:

Following Friday's big flop, the live cattle complex was able to close slightly higher Tuesday afternoon as traders continue to hope that fundamental support will improve and that the complex will be able to continue an upward trend. February live cattle closed $0.22 higher at $232.37, April live cattle closed $0.60 higher at $234.57 and June live cattle closed $1.00 higher at $230.60. Still no cash cattle trade has developed, and the market won't likely see trade until Thursday or Friday. 

Tuesday's slaughter is estimated at 114,000 head, 7,000 head less than a week and a year ago.

Boxed beef prices closed mixed: choice up $0.43 ($364.76) and select down $0.49 ($359.84) with a movement of 118 loads (80.22 loads of choice, 14.45 loads of select, 5.45 loads of trim and 17.39 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Higher. The fact remains that supplies are thin, and in order to secure enough inventory for the next couple of months, packers can't afford to sit idle.

FEEDER CATTLE:

The feeder cattle complex was also able to close slightly higher Tuesday afternoon as the market mainly followed in the wake of the live cattle market's trend. January feeders closed $0.70 higher at $362.62, March feeders closed $1.22 higher at $357.67 and April feeders closed $1.55 higher at $356.45. More than anything, today's higher close came as traders were willing to advance the contracts following Friday's plunge, as the contracts were no longer up against immediate resistance pressure. At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder cattle and calves traded mostly steady to $4.00 lower on lesser quality and increased flesh. Feeder cattle supply over 600 pounds was 58%. The CME feeder cattle index 1/19/2026: down $1.26, $367.68.

LEAN HOGS:

The lean hog complex closed mixed as the nearby contracts closed lower while the deferred contracts were able to keep with their upward trend. February lean hogs closed $0.42 lower at $87.85, April lean hogs closed $0.02 lower at $95.17 and June lean hogs closed $0.57 higher at $108.07. The market has officially topped into new contract highs, and it will be vital that demand remains strong in order to sustain these levels. Hog prices averaged $80.19 on the Daily Direct Afternoon Hog Report, with a total movement of 1,790 head. Pork cutouts total 294.94 loads with 246.33 loads of pork cuts and 48.60 loads of trim. Pork cutout values: down $0.73, $93.47. Tuesday's slaughter is estimated at 493,000 head, 4,000 head more than a week ago and 9,000 head more than a year ago. The CME lean hog index 1/16/2026: up $0.76, $81.76.

WEDNESDAY'S HOG CALL: Steady. Packers haven't been very aggressive in the cash market lately, and up until this point, that trend hasn't traded.

Tuesday Midday Livestock Market Update - Traders Help Push Contracts Higher

GENERAL COMMENTS:

The livestock complex is trading higher into midday Tuesday following last Friday's sharp decline in the cattle complex. Still no cash cattle trade has developed and won't likely until later in the week. March corn is up 3/4 cent per bushel and March soybean meal is up $2.50. The Dow Jones Industrial Average is down 538.07 points and the NASDAQ is down 352.12 points.

LIVE CATTLE:

Following last Friday's sharp decline, the live cattle complex is cautiously trading higher into midday Tuesday. February live cattle are up $0.75 at $232.85, April live cattle are up $1.05 at $235.02 and June live cattle are up $1.32 at $230.92. The spot April contract is hovering above the market's 100-day moving average, which remains a very critical threshold to monitor, as a close below that price point could signal continued downward pressure. Still nothing has developed in this week's fed cash cattle market and won't likely until Thursday or Friday. New showlists appear to be mixed, higher in Kansas, about steady in Nebraska/Colorado, but lower in Texas.

Boxed beef prices are mixed: choice up $1.99 ($366.32) and select down $0.79 ($359.54) with a movement of 54 loads (42.95 loads of choice, 6.13 loads of select, zero loads of trim and 5.24 loads of ground beef).

FEEDER CATTLE:

And much like the live cattle complex, the feeder cattle contracts are trading slightly higher into midday Tuesday following last Friday's severe break. The feeder cattle complex will likely continue to follow in the live cattle market's wake, waiting and hoping for increased fundamental support. January feeders are up $1.10 at $363.02, March feeders are up $1.82 at $358.27 and April feeders are up $2.17 at $357.07.

LEAN HOGS:

The lean hog complex is trading higher into midday Tuesday, seeming technically unafraid that the market is breaking into new contract highs in the spot April contract. February lean hogs are steady at $88.27, April lean hogs are up $0.25 at $95.45 and June lean hogs are up $0.87 at $108.37. It is worth noting that pork cutouts are higher, but it will remain critical that fundamental support remains strong this week if traders are going to keep their momentum in the market.

The projected lean hog index for 1/16/2026 is up $0.76 at $81.76, and the actual index for 1/15/2026 is up $0.50 at $81.00. Hog prices are again unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 715 head have traded. Pork cutouts total 182.66 loads with 146.84 loads of pork cuts and 35.82 loads of trim. Pork cutout values: up $0.10, $94.30.