The livestock complex again ended the day
mixed, as cattle contracts received a little extra support from traders,
while lean hog contracts ended the day lower. On Friday, the monthly
Cattle on Feed report is set to be released. December corn is up 5 1/2
cents per bushel and December soybean meal is down $1.80. The Dow Jones
Industrial Average is down 703.84 points and the NASDAQ is down 263.92
points.
Thursday's export report shared that beef net
sales of 9,300 mt for 2026 were down 36% from the previous week and 37%
from the prior 4-week average. The three largest buyers were Mexico
(1,600 mt), South Korea (1,400 mt) and Taiwan (1,400 mt). Pork net sales
of 27,300 mt for 2026 were down 25% from the previous week and 15% from
the prior 4-week average. The three largest buyers were Mexico (10,700
mt), South Korea (3,500 mt) and Japan (2,900 mt).
Despite the fact that boxed beef prices and
fed cash cattle prices both ended the day lower, the futures market
received a bone from traders as they were willing to mildly support the
contracts through Thursday's end. October live cattle closed $0.77
higher at $218.00, December live cattle closed $1.12 higher at $218.27
and February live cattle closed $1.10 higher at $218.90. Do remember
that on Friday the monthly Cattle on Feed report is set to be released.
The cash cattle market saw bids offered throughout the day in both
regions, but the day's movement was light. So far this week, the only
strong test has been in the North, where dressed cattle have traded at
$355 to $356, which is $9.00 to $10.00 lower than last week's weighted
average, and some live sales have been marked in the North at $255 as
well. The South has yet to trade cattle, although bids were offered
throughout the day in Kansas at $255. But given that packers were able
to secure more inventory in recent weeks and with Friday releasing the
monthly Cattle on Feed report, this week's trade could be light in
volume and slow to develop. It's also worth noting that the majority of
the cattle that traded on Wednesday were marked for delivery on the week
of September 7.
Thursday's slaughter is estimated at 103,000 head --
3,000 head less than a week ago and 14,000 head less than a year ago.
Boxed beef prices closed lower: choice down
$5.06 ($389.93) and select down $0.43 ($363.74) with a movement of 110
loads (88.85 loads of choice, 14.17 loads of select, zero loads of trim
and 6.86 loads of ground beef).
FRIDAY'S CATTLE CALL: Lower. With packers
having ample supply available to them, it's likely that prices will
continue to be lower on Friday.
Apart from a couple of the nearby contracts,
the feeder cattle complex was also able to end the day mostly higher.
September feeders closed $0.20 lower at $328.92, October feeders closed
$0.65 higher at $322.70 and November feeders closed $0.80 higher at
$314.87. The cautious nature of the feeder cattle complex could be
stemming from a number of factors: the fact that on Friday the monthly
COF report is set to be released, the fact that on Monday the border
reopens to Mexican cattle, or the fact that fed cash cattle prices are
trading lower, which dampens the excitement in the feeding sector; all
weigh heavily on the market. At the Winter Livestock Auction in Pratt,
Kansas, compared to last week, there wasn't enough supply to accurately
test those weighing 650 to 950 pounds. But good demand was seen on
steers and heifers weighing under 600 pounds. Slaughter cows and bulls
sold $2.00 to $6.00 lower. Feeder cattle supply over 600 pounds was 81%.
The CME feeder cattle index 8/19/2026: down $0.51, $341.85.
And the topsy-turvy nature continues in the
lean hog complex as the market ended the day mixed: lower in its nearby
contracts but higher in its deferred contracts. More than anything,
traders are hopeful that demand will increase in later months but remain
uncertain about what to expect for tomorrow, let alone next week.
October lean hogs closed $1.27 lower at $80.22, December lean hogs
closed $0.67 lower at $70.75 and February lean hogs closed $0.42 lower
at $73.82. Hog prices closed higher on the Daily Direct Afternoon Hog
Report, up $0.24 with a weighted average price of $92.34 on 1,306 head.
Pork cutouts totaled 256.15 loads, with 222.98 loads of pork cuts and
33.17 loads of trim. Pork cutout values: down $1.09 to $96.49.
Thursday's slaughter is estimated at 451,000 head -- 23,000 head less
than a week ago and 20,000 head less than a year ago. The CME lean hog
index 8/18/2026: down $0.82, to $93.96.
FRIDAY'S HOG CALL: Lower. At this point, it's
most likely that packers have secured all they need in the cash market
aside from some minor cleanup trade.
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