Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: 20-40 Lower

Live cattle futures closed moderately lower on Friday, with April off more than 4.00 for the first week of the new year. Boxed beef prices were sharply higher for the week, but the combination of lower equities and no follow through strength in the cash cattle market outweighed the beef strength. Equities are higher overnight, after a slow start, which may allow for a bounce back toward Monday's lows. What cash that finally did move was a good $2-$3 lower than the previous week in the south and $2 under the northern beef prices.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: 30-50 Lower

Feeder cattle futures tumbled another 3.50 basis the March contract on Friday , finishing 6.32 lower for the week. Corn prices were modestly higher but are off a couple cents in overnight trade. Cash index levels are declining in the feeders and are expected to drop off another .75-1.00 in the next two days. The market is looking at gaps all over the place for near term targets. The path of least resistance seems to have moved back to the downside. Weather does not look threatening.

Bret Crotts
Schwieterman Marketing, LLC