DTN Midday Livestock Comments          01/02 11:35

   Cattle Launch Higher as Live and Feeder Contracts Surge

   The cattle complex is rocketing higher as traders push both the live cattle 
and feeder cattle contracts higher. Fed cash cattle prices begin to trade 
stronger as well.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed as the cattle contracts launch higher 
while the hog complex is mixed. Some light cash cattle trade has been reported 
in Nebraska at $360, which is $4.00 higher than last week's weighted average. 
March corn is down 2 1/4 cents per bushel and March soybean meal is down $2.70. 
The Dow Jones Industrial Average is up 182.66 points and NASDAQ is down 19.07 
points.

LIVE CATTLE:

   It's a breakout day for the live cattle complex as the market has shot above 
its 100-day moving average for the first time since late October. February live 
cattle are up $3.30 at $234.87, April live cattle are up $2.95 at $235.12 and 
June live cattle are up $2.90 at $229.67. More than anything, it seems to be a 
combination of trade support mixed with the knowingness that demand is likely 
only going to get stronger through the first half of the year, with traders 
also noting the uptick in cash cattle prices today. A few dressed sales are 
being reported in Nebraska at $360, which is $4.00 higher than last week's 
weighted average. Several majors in that state are also bidding $360, but those 
bids continue to be passed. A few bids are on the table in the South around 
$228 to $232, but they are being passed as they are below current asking prices 
of around $234. Packer inquiry should continue to improve as the day progresses.

   Boxed beef prices are higher: choice up $1.25 ($348.70) and select up $4.56 
($346.94) with a movement of 53 loads (36.70 loads of choice, 2.70 loads of 
select, zero loads of trim and 13.41 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is also sky-rocketing higher as traders note the 
uptick in the live cattle complex and continue to be optimistic that the market 
is likely going to trade stronger and stronger through at least the first 
quarter of 2026. January feeders are up $5.05 at $355.30, March feeders are up 
$6.27 at $351.60 and April feeders are up $6.82 at $351.05. Feeder cattle sales 
next week will likely be stronger in the countryside as well.

LEAN HOG:

   The lean hog complex is trading mixed into Friday's noon hour as the nearby 
contracts dip lower while the deferred contracts continue to trade higher. More 
than anything, traders seem reluctant to do much with the contract until its 
fundamentals improve. February lean hogs are down $0.87 at $84.22, April lean 
hogs are down $0.72 at $89.20 and June lean hogs are down $0.42 at $102.45.

   The projected lean hog index for 12/31/2025 is down $0.41 at $81.85, and the 
actual index for 12/30/2025 is up $0.01 at $82.26. Hog prices are on the Daily 
Direct Morning Hog Report are unavailable due to confidentiality. However, we 
can see that only 171 head have traded and that the market's five-day rolling 
average now sits at $69.40. Pork cutouts total 82.06 loads with 64.41 loads of 
pork cuts and 17.65 loads of trim. Pork cutout values: up $1.97, $95.71.

   ShayLe Stewart can be reached at shayle.stewart@dtn.com




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