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Sort and Cull 02/09 14:46
Cattle Complex Tiptoes Into New Week
The cattle market may have a bullish outlook for 2026, but that's not to say
it's invincible. Whether it's external pressures from greater economic
challenges or whatever news headline seems to break for the day -- the market
is chock full of risk and volatility, just like we saw last week.
ShayLe Stewart
DTN Livestock Analyst
If last week's trade wasn't a prime example of the cattle market's
overarching theme heading into 2026 -- I truly cannot think of a better example
off the top of my head.
The market is overflowing with bountiful support, but the market's main
source of optimism continues to be its bullish fundamentals. Supplies remain
historically low, demand continues to be red hot, and prices from one sector of
the industry to the other are all at/or near record highs.
But that's not to say the market is invincible. Whether it's external
pressures from greater economic challenges or whatever news headline seems to
break for the day -- the market is chock full of risk and volatility. Which is
what the complex saw last week when news broke about the union electing to go
on strike at the JBS plant in Greeley, Colorado. This consequently caused the
live cattle complex to fall $5 to $6 lower, and the feeder cattle contracts
fell mostly $7 lower.
Now, thankfully, the market has quickly recovered most of the position lost
last week. But the lesson needs to be what we take away here. Although 2026 is
likely going to be another year of record-high prices laced with numerous
opportunities, that doesn't mean the market is going to trade higher every day.
Even though the market's fundamentals are strong, hurdles can show up within a
moment's notice and cause the market severe pain.
I continue to encourage each and every one of you to fine-tune your
marketing strategy for the year -- think about different scenarios that may
play out at critical marketing times and what price parameters could cause you
to execute a different marketing approach.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
(c) Copyright 2026 DTN, LLC. All rights reserved.
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