DTN Midday Livestock Comments          02/12 11:46

   Livestock Contracts Trade Lower Into Thursday's Noon Hour 

   The livestock complex is trading lower into Thursday's noon hour as traders 
continue to wait on the fed cash cattle market to trade cattle and the lean hog 
complex is worried about over supplying the market. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading lower into Thursday's noon hour as the 
market is short of fundamental support. More than anything the market would 
like to see some developments in the fed cash cattle market as noting higher 
prices would reassure traders that the cattle futures can indeed trade higher. 
March corn is up 2 1/4 cents per bushel and March soybean meal is up $4.50. The 
Dow Jones Industrial Average is down 553.58 points and NASDAQ is down 331.77 
points.

   Thursday's export report shared that beef net sales of 15,700 mt for 2026 
were down 21% from the previous week and 1% from the prior 4-week average. The 
three largest buyers were South Korea (7,800 mt), Japan (1,900 mt) and Mexico 
(1,800 mt). Pork net sales of 28,600 mt for 2026 were down 18% from the 
previous week and 24% from the prior 4-week average. The three largest buyers 
were Mexico (12,000 mt), Japan (7,100 mt) and Colombia (1,700 mt).

LIVE CATTLE:

   Following Wednesday's sizeable rally, the live cattle complex is back to 
trading slightly lower as the market tries to patiently wait to see what's 
going to develop in the fed cash cattle market this week. With boxed beef 
prices declining -- as they seasonally do during this time -- traders need to 
see additional fundamental support, which will likely come from the cash market 
when trade develops at some point this week. But in the lightning fast world we 
live in, waiting until the very bitter end of the week to see what's going to 
develop fundamentally for the market is a painful waiting lesson traders aren't 
necessarily fond of. February live cattle are down $0.25 at $242.10, April live 
cattle are down $0.90 at $240.07 and June live cattle are down $1.02 at 
$235.55. Asking prices have surfaced in parts of Texas at $245 to $247 -- but 
otherwise the market remains quiet and trade could be delayed until Friday.

   Boxed beef prices are lower: choice down $0.39 ($365.53) and select down 
$0.59 ($361.99) with a movement of 46 loads (24.40 loads of choice, 3.08 loads 
of select, 7.95 loads of trim and 10.72 loads of ground beef).

FEEDER CATTLE:

   And as one would logically assume in this market, with the live cattle 
contracts trading lower, the feeder cattle contracts are following suit. March 
feeders are down $2.50 at $364.95, April feeders are down $1.90 at $362.70 and 
May feeders are down $1.32 at $359.10. Demand has been mostly strong this week 
in the countryside for both feeder cattle and calves -- and especially for 
cattle that will make yearlings this upcoming summer.

LEAN HOGS:

   The lean hog complex continues to tumble lower as the market anticipates a 
wall of supply that's likely going to hit the market at any point in time now. 
The latest Quarterly Hogs and Pigs report showed market-ready supplies were 
larger than originally assumed, and the market is bracing itself for that 
supply to hit. April lean hogs are down $2.37 at $91.47, June lean hogs are 
down $2.07 at $105.40 and July lean hogs are down $2.05 at $107.32.

   The projected CME Lean Hog Index is delayed from the source. Hog prices are 
lower on the Daily Direct Morning Hog Report, down $1.28 with a weighted 
average price of $87.00, ranging from $80.00 to $88.50 on 2,621 head and a 
five-day rolling average of $86.72. Pork cutouts total 166.32 loads with 148.49 
loads of pork cuts and 17.83 loads of trim. Pork cutout values: up $2.12, 
$95.89.

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




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