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DTN Midday Livestock Comments 01/13 11:48
Traders Turn Livestock Contracts Higher
Still no cash cattle trade has developed and asking prices remain elusive.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
All in all, the livestock contracts are trading higher into Tuesday's noon
hour as cattle are supported by the USDA report Monday that corn prices are
expected to remain affordable in 2026 and by the increased demand for beef.
Meanwhile the lean hog complex is trading higher as it's simply no longer up
against immediate resistance pressure. March corn is up 1/4 cent per bushel and
March soybean meal is down $5.90. The Dow Jones Industrial Average is down
307.04 points and NASDAQ is up 15.89 points.
LIVE CATTLE:
The cattle complex is stepping higher into Tuesday's noon hour as traders
are pleased to see boxed beef prices stronger again Tuesday, and are feeling at
ease knowing corn prices are projected to remain affordable through 2026 -- as
evidenced by Monday's WASDE report. February live cattle are up $2.02 at
$237.27, April live cattle are up $2.57 at $238.65 and June live cattle are up
$2.62 at $233.22. No substantial cash cattle trade has developed yet, and with
the futures market trading slightly higher, there's a good chance trade will
again be delayed until late in the week. No asking prices have been established
either.
Boxed beef prices are higher: choice up $0.91 ($358.02) and select up $0.99
($359.04) with a movement of 93 loads (61.65 loads of choice, 4.78 loads of
select, 18.96 loads of trim and 7.78 loads of ground beef).
FEEDER CATTLE:
With corn prices anticipated to remain affordable through 2026, the feeder
cattle complex is sporting a noteworthy $4.00 to $5.00 rally into Tuesday's
noon hour. Feed costs have remained in feeders' favor over the last year as
overall it's been affordable, but with feeder cattle prices so high, buyers
need that guarantee as their breakevens on these calves is risky and if feed
prices were to grow more expensive, a lot of people could be in a tough
position given how much they are simply paying for the calves and feeders they
desire to feed out. January feeders are up $4.40 at $366.45, March feeders are
up $5.40 at $361.57 and April feeders are up $5.60 at $360.10.
LEAN HOGS:
Following the slight technical downturn in which the lean hog complex has
seen over the last three days, the market is again trading higher as traders
are no longer up against immediate resistance pressure. February lean hogs are
up $0.32 at $84.75, April lean hogs are up $0.35 at $91.10 and June lean hogs
are up $0.35 at $104.37. It still remains a tough fundamental position for the
marketplace as pork cutout values are again lower and as there hasn't been
hardly any trade in the cash hog market -- meaning that today's slight uptick
is solely a technical decision.
The projected CME Lean Hog Index for 1/10/2026 is down $0.10 at $80.50, and
the actual index for 1/9/2026 is down $0.25 at $80.60. Hog prices are again
unavailable on the Daily Direct Morning Hog Report because of confidentiality.
The only thing we can see is that 60 head have traded, and the market's
five-day rolling average now sits at $68.56. Pork cutouts total 236.24 load
with 218.65 loads of pork cuts and 17.59 loads of trim. Pork cutout values:
down $0.97, $92.13.
ShayLe Stewart can be reached at shayle.stewart@dtn.com
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