Cattle Rally on Smaller On-Feed Count as Hogs Firm, Grains and Cotton Ease

Overview

• USDA’s Cattle on Feed report put Jan. 1 feedlot inventories at 11.45 million head, down about 3% year over year, with December placements off 5.4% and marketings up 1.8%.
• Live cattle closed $1.00–$1.25 higher and feeder cattle rose $1.90–$2.50, as beef cold storage marked the lowest December since 2009 and boxed beef prices held firm to higher intraday.
• Lean hog futures finished mixed to higher with April and May up, supported by the CME Lean Hog Index rising and a pork cutout near $97, while Dec. pork stocks were the lowest for that month since 1997.
• Corn, soybeans and wheat slipped after last week’s export surge (corn 4.01 MMT, soybeans 2.45 MMT, wheat 618,076 MT), reflecting profit-taking to start the week.
• Cotton fell 67–85 points, with total commitments at 7.35 million RB as of Jan. 15, 13% below last year and tracking behind the average seasonal pace, while screwworm detections in Tamaulipas remain a noted cattle-market risk.