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DTN Midday Livestock Comments 08/25 11:51
Traders Lack Confidence in Market's Fundamentals
The livestock complex is trading lower yet again Tuesday as traders aren't
confident about the market's fundamentals.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is enduring another challenging day as the market is
left depleted of fundamental support. Some light cash cattle trade is currently
developing in Nebraska; but otherwise the market sits idle with no other sales
noted. December corn is up 6 1/2 cents per bushel and December soybean meal is
up $1.30. The Dow Jones Industrial Average is up 72.43 points and NASDAQ is up
157.40 points.
LIVE CATTLE:
Although midday boxed beef prices are higher, the live cattle contracts
continue their lower trend as the market needs reassurance as to what the
immediate market ramifications are going to be from the border reopening Monday
at the Douglas, Arizona, port to Mexican cattle imports. While midday boxed
beef prices substantially higher, that fundamental support isn't enough to lend
traders any confidence at this point in time. October live cattle are down
$2.20 at $211.40, December live cattle are down $1.75 at $212.45 and February
live cattle are down $1.70 at $213.90. Some light cash cattle trade is
currently being reported in the North at $345 and those cattle were committed
for delivery on the weeks of Sept. 8 and Sept. 14. Otherwise, the cash market
sits idle with no trade developed yet. But asking prices in the South are noted
at $228 to $230.
Boxed beef prices are higher: choice up $2.43 ($388.12) and select up $5.46
($370.48) with a movement of 59 loads (31.52 loads of choice, 11.32 loads of
select, 11.70 loads of trim and 4.19 loads of ground beef).
FEEDER CATTLE:
The losses in the feeder cattle complex are even more severe as its
contracts are $3.00 to $4.00 lower headed into Tuesday's noon hour. Couple the
border reopening with the fact that buyers have been more selective in sale
barns here recently; neither of those two factors help support the feeder
cattle market, unfortunately. September feeders are down $4.55 at $319.67,
October feeders are down $4.17 at $314.10 and November feeders are down $4.32
at $306.65.
LEAN HOGS:
The lean hog complex isn't in any better of a position than the cattle
contracts are as its market is also trading lower into Tuesday's noon hour. But
with both cash prices and pork cutout values lower, a lower trend is the only
thing to be expected. October lean hogs are down $0.60 at $80.52, December lean
hogs are down $0.75 at $70.72 and February lean hogs are down $0.95 at $73.47.
The projected CME Lean Hog Index for 8/21/2026 is down $0.40 at $92.86 and the
actual index for 8/20/2026 is down $0.46 at $93.26. Hog prices on the Daily
Direct Morning Hog Report average $90.61, ranging from $89.00 to $92.00 on
4,162 head and a five-day rolling average of $92.36. Pork cutouts total 180.19
loads with 163.44 loads of pork cuts and 16.75 loads of trim. Pork cutout
values: down $2.31, $97.62.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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