DTN Midday Livestock Comments          02/02 11:34

   Cattle Futures Surge Higher Monday

   Following the bullish cattle inventory report Friday, aggressive 
triple-digit gains developed in all cattle futures Monday morning. This support 
continues to add bullish expectations to future cattle and beef market 
direction.

Rick Kment
DTN Analyst

GENERAL COMMENTS:

   Cattle markets are holding strong triple-digit gains at midday Monday, 
following the bullish cattle inventory report seen last week. The focus on 
total cattle numbers slightly lower than the previous year, and total calvings 
falling 2% in 2025 compared to the previous year, has rekindled the overall 
bullish buying activity across the entire livestock market. The rebound in 
financial markets is adding to the buyer interest with Dow Jones markets up 
over 500 points at times through morning trade, and less focus on economic 
pressure early in the week is helping stimulate both cattle and hog market 
buying. March corn is down 4 at $4.243 and March soybean meal is down $0.40 at 
$293.2. The Dow Jones Industrial Average is up 404.58 at 49,297.05.

LIVE CATTLE:

   Live cattle futures surged higher early Monday morning following the bullish 
news from last week's cattle inventory report. The focus on overall reduction 
in all cattle numbers and 2025 calvings decreasing by 2% has continued to spark 
renewed buying support through early trade. Although contracts have backed away 
from initial highs, the focus on strong early week gains is likely to keep 
buyers active through the rest of the session. Cash cattle markets look to be a 
typically quiet Monday with both buyers and sellers busy taking inventory and 
preparing for the week ahead. Bids and asking prices have yet to be 
established, and if the trend of the last couple of weeks continues, 
significant trade volume will be delayed until much later in the week. February 
live cattle are $2.83 higher at $238.675, April live cattle are $3.28 higher at 
$240.075 and June live cattle are $3.05 higher at $234.775. Boxed beef prices 
are Higher: choice up $2.14 ($367.70) and select up $2.35 ($364.29) with a 
movement of 32.80 loads (20.27 loads of choice, 4.93 loads of select, 3.40 
loads of trim and 4.20 loads of ground beef).

FEEDER CATTLE:

   Feeder cattle futures are leading the market higher Monday morning as 
renewed focus on tight supplies continues to be seen through the entire cattle 
complex. The announcement in Friday's cattle inventory report of a 2% drop in 
calves born during 2025 continues to not only leave current buyers actively 
looking for cattle to fill yards, but it indicates that the trend will not be 
changing any time soon. It will be interesting to see how active buyer support 
remains over the next couple of days and weeks following this bullish report. 
Although the report gives actual numbers to the market supply tightness, the 
fact is that the market has already factored in much of the tightness, and this 
will not change the overall expectations of the beef market over the upcoming 
months. March feeders are $6.48 higher at $366.75, April feeders are $6.25 
higher at $364.525 and May feeders are $5.75 higher at $360.875.

LEAN HOGS:

   Lean hog futures have moved actively higher Monday as well. Although the 
same dynamics seen in the cattle market are not seen in the hog complex, the 
spill-over bullish support from surging cattle markets and active outside 
market buying activity has helped to push nearby contracts to triple-digit 
gains during morning trade. Spot month February futures are holding 80 to 90 
cent gains through most of the morning, but the rest of nearby contracts are 
holding strong triple-digit gains near $2 per cwt through much of the morning. 
Traders continue to not only gain spill-over support from any beef market 
support during the year, but continued gains in financial markets are helping 
to keep hog market traders actively buying in initial February trade. February 
lean hogs are $0.85 higher at $88.1, April lean hogs are $1.98 higher at 
$97.125 and May lean hogs are $2.08 higher at $101. Hog Prices are unreported 
due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts 
totaled 163.86 loads with 126.44 loads of pork cuts and 37.42 loads of trim. 
Pork cutout values are up $0.58 at $96.98.

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




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