DTN Midday Livestock Comments          12/31 11:42

   Traders Continue to Push Cattle Contracts Higher 

   Still no cash cattle trade has developed but the cattle futures are trading 
higher into Wednesday's noon hour. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Wednesday's noon hour as the 
cattle contracts are inching higher while the lean hog complex trades mostly 
lower. Still no cash cattle trade has developed. March corn is up 1 cent per 
bushel and March soybean meal is down $1.10. The Dow Jones Industrial Average 
is down 159.65 points and NASDAQ is down 60.64 points.

LIVE CATTLE:

   The live cattle complex is trading higher again into Wednesday's noon hour 
as traders have a bullish attitude toward the marketplace as they look to 2026. 
February live cattle are up $1.25 at $231.72, April live cattle are up $1.27 at 
$232.27 and June live cattle are up $1.10 at $226.90. At this point, the spot 
February contract still hasn't broke through the market's resistance at its 
100-day moving average, but the complex is only a mere $0.32 away from that 
threshold. Still no cash cattle trade has developed but asking prices are noted 
at $232 in the South but still remain unestablished in the North.

   Boxed beef prices are lower: choice down $0.20 ($348.00) and select down 
$0.77 ($342.39) with a movement of 112 loads (83.32 loads of choice, 6.88 loads 
of select, 13.83 loads of trim and 8.95 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex continues to push higher and higher as the market 
sees more than enough support to justify a higher trend at this point. Between 
seeing the live cattle contracts trading higher and the anticipation that 
feeder cattle demand is going to be red hot in the first quarter of 2026 -- 
traders currently aren't afraid to be pushing the contracts above the market's 
100-day moving average. January feeders are up $0.80 at $350.35, March feeders 
are up $1.02 at $345.60 and April feeders are up $0.97 at $344.40.

LEAN HOG:

   The lean hog complex isn't seeing the same level of support that the cattle 
contracts currently are -- as earlier today the spot February contract rallied 
to its resistance at $86.00 only to then fall lower. February lean hogs are 
down $0.10 at $85.35, April lean hogs are down $0.07 at $90.10 and June lean 
hogs are down $0.07 at $102.90. Given that Thursday is a holiday and little 
interest is likely to jump into the market on Friday, it's likely the complex 
will close lower this afternoon and traders won't likely look to challenge the 
resistance until after the New Year.

   The projected CME Lean Hog Index is delayed from the source. Hog prices on 
the Daily Direct Morning Hog Report average $69.40, ranging from $57.00 to 
$72.00 on 1,516 head with a five-day rolling average of $69.40. Pork cutouts 
total 148.06 loads with 127.42 loads of pork cuts and 20.64 loads of trim. Pork 
cutout values: up $0.93, $95.06.

    

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




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