Hogs
Price action: February lean hog futures rose $2.10 to $87.80, near the session high and hit a three-month high.
Fundamental analysis: Lean hog futures today saw more technical buying as buy stops were likely triggered just above last week’s high. Bulls on this day brushed aside concerns about a weakening cash hog market and CME lean hog index recently. The big premium futures hold to the cash hog and CME index suggest futures traders look for a rebounding cash hog market in the coming weeks.
USDA today reported weekly U.S. pork sales of 26,800 MT for 2026, with sales primarily to Mexico, Japan and Canada.
The latest CME lean hog index is down 11 cents to $80.39. Friday’s projected cash index price is up 11 cents at $80.50. Today’s national direct 5-day rolling average cash hog price quote is $68.56. The noon report today showed pork cutout value up $1.96 at $93.25, led by gains in hams and bellies. Movement at midday was 119.32 loads.
Technical analysis: February lean hog futures bulls have the overall near-term technical advantage and gained more power today as a price uptrend on the daily bar chart has been restarted. The next upside price objective for the hog bulls is to close February futures prices above solid chart resistance at $90.00. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of $85.35. First resistance is seen at $89.00 and then at $90.00. First support is seen at today’s low of $85.60 and then at $85.00.
What to do: Get current with feed coverage.
Hedgers: You are carrying all production risk in the cash market.
Feed needs: You should have all your soymeal needs covered through March in the cash market. You should also have corn-for-feed needs purchased through February. Be prepared to make additional purchases.
Cattle
Price action: February live cattle rose 90 cents to $236.05, near the session high. March feeder cattle rose $4.87 to $364.55, near the session high and hit a 2.5-month high.
Fundamental analysis: The live and feeder cattle futures markets today saw the bulls step in to buy the mid-week dip as technical charts and fundamentals remain overall bullish.
USDA today reported U.S. beef export sales totaled 11,200 for 2026, with sales primarily to South Korea, Japan and Mexico.
USDA today reported very light cash cattle trading so far this week, with steers averaging $232.70 and heifers $233.00. Cash cattle trading last week averaged at $231.86. The noon report today showed wholesale boxed beef cutout values firmer. Choice-grade was up $1.91 at $360.44, while Select-grade gained $2.28 to $359.93. Movement at midday was good at 99 loads. The Choice-Select spread at midday today was plus 51 cents.
World Weather Inc. today said there is some concern remaining for impressive bitter cold air in the Northern Plains late next week that may stress livestock more significantly.
Technical analysis: The live and feeder cattle futures bulls still have the firm overall near-term technical advantage. Price uptrends are in place on the daily bar charts. The next upside price objective for the live cattle bulls is to close February futures above resistance at $240.375, which is the top of a downside price gap on the daily bar chart. The next downside technical objective for the bears is closing prices below solid technical support at $230.00. First resistance is seen at this week’s high of $237.55 and then at $239.00. First support is seen at this week’s low of $233.95 and then at $2.33.00.
The next upside price objective for the feeder bulls is to close March futures prices above technical resistance at $370.00. The next downside price objective for the bears is to close prices below solid technical support at $350.00. First resistance is seen at $365.00 and then at $366.00. First support is seen at today’s low of $359.325 and then at this week’s low of $356.175.
What to do: Cover corn-for-feed needs through February in the cash market. Be prepared to make additional purchases.
Hedgers: Carry all production risk in the cash market for now.
Feed needs: For soymeal, you have full coverage in cash through March. You have corn-for-feed needs covered through February as well. Be prepared to make additional purchases if value prices continue.