DTN Early Word Livestock Comments
Tyson Announcement Boosts Cattle Markets
| Futures | Equiv | |||||
| Cattle: | Steady | Higher | Live | $268.56 | +$1.00 | * |
| Hogs: | Steady | Lower | Lean | $77.57 | +$0.16 | ** |
*Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The index has been updated to depict recent changes in live cattle weights and grading percentages.)
** based on formula estimating lean hog equivalent of gross packer revenue.
GENERAL COMMENTS:Monday kicked off the week with higher trade in all livestock futures markets. Live cattle gained $2.15 to $3.05, a much-needed boost after last week's meltdown spurred by a bearish cash market. Feeder cattle managed to hold support levels from Friday's low and climbed $6.025 higher. Fundamentally, feeder cattle numbers are tight and while there is a surplus of fat cattle ready for market, the long-term outlook still looks tight for cattle numbers. Tyson's announcement spurred buying in the futures market as they also unveiled their plan to fully reopen the second production shift at its Amarillo, Texas, beef facility by summer of 2027.
Lean hog futures managed to rally $2.35 on the nearby futures month with gains through April. The summer months declined but with a strong premium to today's market, it is not surprising to see the lower trade. Pork cutout values increased slightly Monday afternoon, continuing the small amount of strength seen late last week. Cash prices still are pressuring the market, although packers started the week off strong with an estimated 496,000 head slaughtered.
| BULL SIDE | BEAR SIDE | ||
| 1) | Tyson Foods restoration of the second production shift at its Amarillo, Texas, beef facility increases buyer capacity for live cattle. | 1) | Cash prices for cattle are expected to remain weak over the next few weeks. |
| 2) | Technical support for feeder cattle futures was reinforced Monday as markets bounced further from Friday's lows off the support line. | 2) | The second shift announcement at Tyson's Amarillo beef facility is most likely in response to the anticipated Mexican cattle feeder cattle numbers expected to cross the border. |
| 3) | Holiday ham demand is expected to provide support to pork prices. | 3) | High global supplies of pork and the lack of China demand will continue to weigh on hog markets. |
| 4) | Higher slaughter numbers are helping to work through the large hog supply. | 4) | A record short managed money position is difficult to get positive momentum against. |
For our next livestock update, please visit our Midday Livestock comments between 11 a.m. and noon CST. Also, stay tuned to our Quick Takes throughout the day for periodic updates on the futures markets.
Sarah Jungman can be reached at sjungman@jpsi.com
(c) Copyright 2026 DTN, LLC. All rights reserved.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]