Tuesday Midday Livestock Market Update - Contracts Rally Following Monday's Weaker Close

GENERAL COMMENTS:

Although fear and worry struck the livestock complex Monday, that no longer seems to be the case as the contracts are all rallying into Tuesday's noon hour. Bids are on the table in Nebraska and Kansas, but no new trade has developed. December corn is up 7 3/4 cents per bushel and December soybean meal is up $3.00. The Dow Jones Industrial Average is up 641.84 points and NASDAQ is down 39.50 points.

LIVE CATTLE:

Following Monday's weaker close, traders seem to have shaken the worry and concern over the border reopening to Mexican cattle imports on Aug. 24 and are back to rallying. August live cattle are up $2.00 at $227.22, October live cattle are up $2.82 at $221.60 and December live cattle are up $3.55 at $220.95. Bids are on the table in Kansas at $228 live and in Nebraska at $228 live and $360 dressed. Following Monday's light trade, no more sales have been confirmed and asking prices remain elusive. But with the back-and-forth nature of the board this week it is anyone's guess when trade will fully get underway and what the week's weighted average trend will be.

Boxed beef prices are higher: choice up $2.91 ($365.80) and select up $0.76 ($345.92) with a movement of 61 loads (37.92 loads of choice, 7.54 loads of select, 7.15 loads of trim and 7.98 loads of ground beef).

FEEDER CATTLE:

The feeder cattle contracts are also rallying into Tuesday's noon hour, again following the lead of the live cattle futures. I would like to mention, however, that the market is seeing the biggest daily gains in its nearby contracts (up $3.00 to $6.00 higher) while the deferred contracts are rallying closer to $1.00. This is likely due to the fact that when increased supplies do come from Mexico, it will impact the later months. August feeder cattle are up $5.57 at $343.82, September feeder cattle are up $6.27 at $338.20 and October feeders are up $3.80 at $329.05.

LEAN HOGS:

With the help of strong consumer demand, the lean hog contracts are rallying into Tuesday's noon hour. The uptick of recent consumer demand has been the driving force allowing the lean hog contracts to trade higher in recent weeks. As long as that support remains steady, the contracts will likely continue to move higher. August lean hogs are down $0.15 at $102.82, October lean hogs are up $0.12 at $87.92 and December lean hogs are up $0.52 at $79.07. The projected CME Lean Hog Index for 7/27/2026 is up $0.12 at $98.35, and the actual index for 7/24/2026 is up $0.32 at $98.23. Hog prices on the Daily Direct Morning Hog Report average $101.32, ranging from $97.00 to $102.00 on 6,149 head and a five-day rolling average of $100.99. Pork cutouts total 112.82 loads with 105.15 loads of pork cuts and 7.66 loads of trim. Pork cutout values: up $1.30, $105.75.

Tuesday Morning Livestock Market Update - Margin Liquidation May Futures Pressure Cattle

GENERAL COMMENTS:

The focus was on reopening the U.S. border to feeder cattle imports, and the trade did not like it. The weakness seen over the past few weeks was clearly due to the weakness of boxed beef and lower cash. Even though the reopening of the border had been a possibility discussed for some time, it caught traders off guard. It was Katy-bar-the-door selling at the beginning of trading. The deferred contracts closed under substantial pressure, with feeder cattle limit down. It is likely further liquidation will take place as margin calls may force more traders out of the market. Boxed beef prices were mixed, with choice up $1.65 and select down $1.55. Higher choice boxed beef may have little influence on the trade Tuesday.

Hog futures were not immune to the selling that surfaced in other markets. The pressure seems to be from the negative attitude in many commodity markets. This may subside with the potential for hog futures to rebound somewhat Tuesday. The August contract was able to close in positive territory as it moves closer to cash settlement and will remain close to cash. Packers were aggressive to begin the week with the Daily Direct Afternoon Hog report up $1.32. They should remain aggressive Tuesday as they will want to buy early in the week. Pork cutout values declined $0.18.

	BULL SIDE		BEAR SIDE
1)	The negative reaction on Monday may have been overdone as liquidation overwhelmed the market.	1)	Follow-through selling is expected Tuesday as some traders will liquidate due to margin calls.
2)	The reopening of the border for cattle will be done in stages, with the influx of cattle not overwhelming the market. Cattle supplies will remain low.	2)	The bearish attitude in the cattle market will be difficult to overcome unless boxed beef prices find support.
3)	The pressure on hog futures seemed more as a spillover from other commodity markets and not a negative turn in fundamentals.	3)	Hog futures are overbought and may see further liquidation as the market corrects.
4)	Packers are expected to be aggressive in the cash hog market again Tuesday.	4)	The steep discount of October to August indicates that traders anticipated a decline in hog prices and a slowdown in demand.

Monday Closing Livestock Market Update - Traders Remain Extremely Cautious When Handling the Cattle Contracts

GENERAL COMMENTS:

The livestock complex ended the day mostly lower as cautiousness and concern seemed to be the market's overarching theme today. Showlists for the week are steady to somewhat higher, greater in Texas and Kansas, but steady in Nebraska. December corn is down 13 1/2 cents per bushel and December soybean meal is down $11.10. The Dow Jones Industrial Average is up 262.83 points and the NASDAQ is down 43.74 points.

LIVE CATTLE:

The live cattle complex ended the day lower as the contracts continued to sink through Monday's close -- still trying to absorb all the information and data shared last week. Because with having a Cattle on Feed report coupled with both the semiannual Cattle Inventory report and an unexpected announcement from U.S. Ag Secretary Brooke Rollins that the border is going to reopen on August 24 -- it's been a whirlwind for the cattle complex. August live cattle closed $1.85 lower at $225.22, October live cattle closed $3.72 lower at $218.77 and December live cattle closed $4.87 lower at $217.40. Monday's slaughter is estimated at 95,000 head -- 7,000 head less than a week ago and 14,000 head less than a year ago. Showlists for the week are steady to somewhat higher, greater in Texas and Kansas, but steady in Nebraska. Some light cash cattle trade was noted in Nebraska at $360 which is $5.00 lower than last week's weighted average, and the majority of those sales were marked for delivery for the week of 8/10/2026.

Last week Southern live cattle traded at $230 which is $7.00 to $8.00 lower than the previous week's weighted average and Northern dressed cattle traded at mostly $365 which is $12.00 to $15.00 lower than the previous week's weighted average.

Boxed beef prices closed mixed: choice up $1.65 ($362.89) and select down $1.55 ($345.16) with a movement of 86 loads (53.94 loads of choice, 11.59 loads of select, 7.56 loads of trim and 12.93 loads of ground beef).

TUESDAY'S CATTLE CALL: Steady. There's a chance that packers could be a tick more aggressive this week as last week they got more aggressive late in the week, but given the board's recent volatility, they will likely try to use that to their advantage.

FEEDER CATTLE:

The feeder cattle complex endured a day of mostly limit lower closes in the deferred contracts as traders know that more inventory is slowly going to be working its way into the marketplace with the border soon reopening to Mexican cattle imports. August feeders closed $7.07 lower at $338.25, September feeders closed $9.52 lower at $331.92 and October feeders closed $10.75 lower at $325.25. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week all classes were lightly tested as not many cattle were traded throughout the day due to extreme heat. Feeder steers traded steady but feeder heifers sold steady to $5.00 lower. Steer and heifer calves sold steady. Feeder cattle supply over 600 pounds was 66%. The CME feeder cattle index 7/24/2026: down $2.28, $347.37.

LEAN HOGS:

With the cautiousness seen in the cattle complex, the lean hog contracts also ended the day lower as an overwhelming attitude draped over the marketplace on Monday. August lean hogs closed $0.12 higher at $102.97, October lean hogs closed $1.22 lower at $87.80 and December lean hogs closed $1.77 lower at $87.55. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.32 with a weighted average price of $100.69, ranging from $97.00 to $102.50 on 610 head and a five-day rolling average of $100.95. Pork cutouts total 260.51 loads with 239.34 loads of pork cuts and 21.17 loads of trim. Pork cutout values: down $0.18, $104.45. Monday's slaughter is estimated 442,000 head -- 11,000 head more than a week ago and 1,000 head less than a year ago. The CME lean hog index 7/23/2026: up $0.43, $97.91.

TUESDAY'S HOG CALL: Steady to somewhat higher. Pork demand has been strong and it's likely that packers are more aggressive in Tuesday's market.

Monday Midday Livestock Market Update - Traders Are Keeping Their Distance From Contracts at Week's Open

GENERAL COMMENTS:

The livestock complex is trading lower into Monday's noon hour as the cattle contracts slowly absorb all the developments that surfaced last Friday and the lean hog complex is being cautious as well. Showlists for the week are steady to somewhat higher, greater in Texas and Kansas, but steady in Nebraska. December corn is down 13 1/2 cents per bushel and December soybean meal is down $11.70. The Dow Jones Industrial Average is up 222.93 points and NASDAQ is down 63.95 points.

LIVE CATTLE:

Last Friday hit like a Mack truck. From having to absorb the monthly Cattle on Feed report, to seeing the bi-annual Cattle inventory report released, to late in the day being surprised to see an announcement come from U.S. Ag Secretary Brooke Rollins that the U.S. will begin to slowly reopen the border to Mexican cattle imports on Aug. 24th -- it was a whirlwind of a day. And given that today (Monday) is the first time traders have had the chance to react to any of those reports/announcements, it comes as no real surprise the market is trading lower. August live cattle are down $1.87 at $225.20, October live cattle are down $3.45 at $219.05 and December live cattle are down $4.42 at $217.85. Showlists for the week are steady to somewhat higher, greater in Texas and Kansas, but steady in Nebraska.

Last week Southern live cattle traded at $230 which is $7.00 to $8.00 lower than the previous week's weighted average and Northern dressed cattle traded at mostly $365 which is $12.00 to $15.00 lower than the previous week's weighted average.

Boxed beef prices are mixed: choice up $1.72 ($362.96) and select down $0.25 ($346.46) with a movement of 50 loads (29.15 loads of choice, 6.89 loads of select, 4.88 loads of trim and 9.23 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is taking last Friday's developments the hardest as its contracts are trading anywhere from $6.00 to $10.00 lower. August feeders are down $4.85 at $340.47, September feeders are down $6.42 at $335.07 and October feeders are down $9.05 at $326.95. With little support from the live cattle/fed cash cattle market, the additional pressure of not knowing the details of the border's reopen will likely weigh heavily on the feeder cattle market for awhile.

LEAN HOGS:

Although midday pork cutout values are higher, the lean hog complex is starting the week off in a cautious manner as well. August lean hogs are up $0.02 at $102.87, October lean hogs are down $1.42 at $87.60 and December lean hogs are down $1.90 at $78.42. More than anything a heavy weight has seemed to be cast across the livestock complex Monday morning, and if fundamental support prevails, traders will likely be able to shake the doggish energy later this week.

The projected CME Lean Hog Index for 7/24/2026 is up $0.32 at $98.23 and the actual index for 7/23/2026 is up $0.43 at $97.91. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 270 head have traded and the market's five-day rolling average now sits at $100.60. Pork cutouts total 138.40 loads with 123.20 loads of pork cuts and 15.20 loads of trim. Pork cutout values: up $2.29, $106.92.