LIVESTOCK: February live cattle closed up $0.40 at $85.37 today. Prices closed nearer the session high today on tepid short covering in a bear market. Gains in futures were limited by weaker cash cattle trade this week, taking place around the $82.00 level, which is down $1.00 to $3.00 from last week. This market is one of the most bearish of the commodity complex, with no technical signs of a market bottom being close at hand.

January feeder cattle closed up $0.12 at $91.85 today. Prices closed near mid-range in quieter trading and did hit another fresh contract low today. Feeders are the most bearish market in the commodity complex. Bears have the solid near-term technical advantage with no early clues of a market bottom being close at hand.

February lean hogs closed down $0.87 at $63.35 today. Prices gapped lower on the daily bar chart and closed near mid-range today. Steady to weaker cash hog prices today and a big drop Wednesday in pork product prices weighed on the hog futures market today. The key "outside markets" were in a bearish posture for hogs today, as the U.S. dollar index was firmer while crude oil prices and the U.S. stock indexes were sharply lower.

February pork bellies closed down $1.57 at $87.07 today. Prices closed near the session low today. Bulls still have the near-term technical advantage. The next upside price objective for the bulls is pushing and closing prices above solid technical resistance at the October high of $91.70.