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




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