DTN Midday Livestock Comments          01/26 11:36

   Traders Drive Livestock Contracts Higher

   With more than enough fundamental support being available in both the cattle 
and hog sectors, traders have ultimately elected to drive the contracts higher 
at Monday's start. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is off to a stronger start the week, as traders are 
noting more than enough fundamental support to justify trading the contracts 
higher. New showlists appear to be mixed, higher in Texas, but lower in Kansas, 
and Nebraska/Colorado. March corn is down 2 cents per bushel and March soybean 
meal is down $5.00. The Dow Jones Industrial Average is up 186.92 points and 
the NASDAQ is up 178.84 points.

LIVE CATTLE:

   Last Friday was a whirlwind of developing factors for the live cattle market 
to note and keep track of, between the fed cash cattle that finally developed, 
and the monthly Cattle on Feed report that was released. Thankfully, the 
neutral to slightly bearish tone of the Cattle on Feed report was quickly 
overlooked by the strong developments in the fed cash cattle market, as traders 
have elected to again push the live cattle contracts higher today. February 
live cattle are up $0.67 at $235.57, April live cattle are up $0.45 at $237.40 
and June live cattle are up $0.57 at $233.07. What will remain an obstacle for 
the market to manage this week is the technical resistance that's formed in the 
live cattle complex. There's an argument to be made that the market could 
potentially break through that barrier if fed cash cattle prices are higher 
again this week, but that's taking a fairly bullish look at the marketplace. 
Even if prices do trade higher again this week, there's a strong likelihood 
that traders won't want to challenge that threshold, especially considering 
that later this week, the highly anticipated Cattle Inventory report is set to 
be released. New showlists appear to be mixed, higher in Texas, but lower in 
Kansas, and Nebraska/Colorado.

   Last week, Southern live cattle traded mostly at $233 to $235, which is 
mostly steady to $2.00 higher than last week's weighted average, and Northern 
dressed cattle traded at mostly $370, which is $5.00 higher than the previous 
week's weighted average.

   Boxed beef prices are higher: choice up $0.33 ($369.25) and select up $3.58 
($365.97) with a movement of 50 loads (32.53 loads of choice, 3.84 loads of 
select, 4.95 loads of trim and 8.53 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle contracts are also trading higher as the market finds 
power and momentum in the fact that fed cash cattle prices continue to scale 
higher. March feeders are up $0.72 at $360.90, April feeders are up $0.82 at 
$359.57 and May feeders are up $0.92 at $356.97. So long as the live cattle 
contracts continue to trade higher, the feeder cattle complex will also likely 
do the same.

LEAN HOGS:

   And last but not least, the lean hog contracts are also enjoying a mild 
rally into midday Monday. February lean hogs are down $0.07 at $88.27, April 
lean hogs are up $0.60 at $96.77 and June lean hogs are up $0.70 at $109.20. 
The market has seen steady support from consumers, which has helped encourage 
the contracts to continue to trade higher, although the market is continuing to 
drive to new contract highs when it does so. 

   The projected lean hog index for 1/23/2026 is up $0.39 at $84.01 and the 
actual index for 1/22/2026 is up $0.55 at $83.62. Hog prices are unavailable on 
the Daily Direct Morning Hog Report because no hogs have traded yet. The only 
thing we can note from the report is that the market's five-day rolling average 
sits at $80.86. Pork cutouts total 120.78 loads with 100.24 loads of pork cuts 
and 20.54 loads of trim. Pork cutout values: up $1.62, $97.37.

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




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