Tuesday Closing Livestock Market Update - Cattle Rally Aggressively Upon Hearing of Red-Dyed Diesel Executive Order

GENERAL COMMENTS:

The livestock complex again ended the day mixed, with the cattle contracts rallying upon hearing of the executive order for red-dyed diesel, but the lean hog contracts still saw their nearby contracts end the day lower. No cash cattle trade has developed yet. December corn is up 10 3/4 cents per bushel and December soybean meal is up $7.70. The Dow Jones Industrial Average is up 253.38 points and NASDAQ is up 122.48 points.

LIVE CATTLE:

Tuesday came as a bullish surprise to the cattle complex, which seemed to be mostly fueled by the announcement from President Trump that he intends to sign an executive order to waive the off-road requirement and allow anyone to purchase tax-free, red-dyed diesel. The bullishness helped rally the complex to the upper end of its current trading range. October live cattle closed $3.97 higher at $221.22, December live cattle closed $4.12 higher at $224.10 and February live cattle closed $5.12 higher at $227.17. No cash cattle trade developed throughout the day. Both bids and asking prices remain elusive at this point. 

Tuesday's slaughter is estimated at 110,000 head -- 2,000 head more than a week ago and 8,000 head less than a year ago.

Boxed beef prices closed mixed: choice up $0.67 ($378.93) and select down $2.23 ($356.34) with a movement of 125 loads (84.05 loads of choice, 19.25 loads of select, 6.86 loads of trim and 14.35 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Steady. Given that packers were able to buy a sizeable volume of cattle last week, it's unlikely thatthey'll have to be as aggressive in the market this week.

FEEDER CATTLE:

The excitement seen in the live cattle complex was only amplified throughout the feeder cattle market as its contracts closed anywhere from $6.00 to $9.00 higher. Seeing the bullishness in the live cattle market only made traders all that more eager to drive the feeder cattle contracts higher, and depending on the specifics of the executive order dealing with dyed diesel, it could help support sale barn prices too in time. October feeders closed $$6.65 higher at $340.50, November feeders closed $8.15 higher at $338.27 and January feeders closed $9.22 higher at $331.82. At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers over 800 pounds traded steady to $2.00 lower; those under 800 pounds sold $3.00 to $8.00 lower. Feeder heifers sold mostly steady; those weighing 600 to 700 pounds traded $5.00 higher. Heifer calves traded $5.00 to $10.00 higher. Feeder cattle supply over 600 pounds was 66%. The CME feeder cattle index 10/5/2026: down $0.54, $337.22.

LEAN HOGS:

The lean hog complex ended the day mixed, with most of the nearby contracts ending the day lower, while the deferred contracts were able to maintain a slightly higher position through the day's end. Pork cutout values were weaker this afternoon, which could have added to the pressure that the nearby contracts felt. October lean hogs closed $0.07 higher at $77.92, December lean hogs closed $0.57 lower at $70.37 and February lean hogs closed $1.37 lower at $71.32. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $1.07 with a weighted average price of $75.74, on 6,700 head. Pork cutouts total 305.33 loads, with 264.65 loads of pork cuts and 40.69 loads of trim. Pork cutout values: down $2.17, $83.84. Tuesday's slaughter is estimated at 494,000 head -- 1,000 head more than a week ago and 16,000 head more than a year ago. The CME lean hog index 10/2/2026: down $0.57, $79.63.

WEDNESDAY'S HOG CALL: Lower. With pork cutout values a tick lower on Wednesday, cash prices could be lower.

Tuesday Midday Livestock Market Summary - Cattle Rally Upon Red Dye Diesel Executive Order

GENERAL COMMENTS:

The livestock complex is trading mixed with the cattle complex reacting to the announcement of the red-dye diesel executive order, but the lean hog complex is remaining cautious still. No cash cattle trade has developed yet. December corn is up 8 1/2 cents per bushel and December soybean meal is up $7.20. The Dow Jones Industrial Average is up 324.34 points and the NASDAQ is up 179.99 points.

LIVE CATTLE:

The live cattle complex is off like a rocket heading into Tuesday's noon hour as the complex is successfully fronting at $3.00 to $4.00 rally into the afternoon. More than anything else the excitement in the marketplace likely stems from President Trump's announcement that he's going to sign an executive order to officially waive the off-road requirement and allow anyone to purchase tax-free, red-dyed diesel. With fuel costs on the forefront of everyone's mind, and especially those involved in agriculture, the announcement brings some market excitement. October live cattle are up $2.57 at $219.82, December live cattle are up $3.17 at $223.15 and February live cattle are up $3.87 at $225.92. Still no trade has developed in the fed cash cattle market as both bids and asking prices remain elusive. Trade will likely be delayed until later in the week.

Boxed beef prices are higher: choice up $4.20 ($382.46) and select up $2.05 ($360.62) with a movement of 49 loads (40.37 loads of choice, 5.27 loads of select, zero loads of trim and 2.88 loads of ground beef).

FEEDER CATTLE:

And upon hearing about the red-dye diesel announcement, and upon seeing the live cattle contracts trading higher, the feeder cattle complex couldn't help itself to trade higher too. October feeders are up $4.27 at $338.12, November feeders are up $5.45 at $335.60 and January feeders are up $6.72 at $329.32. Currently the spot November contract is trading above its 100-day moving average. It will be interesting to see if the complex can hold above that threshold ahead of the day's close.

LEAN HOGS:

And the lean hog complex is back to trading slightly lower, unsure if the market possess enough support to break through the resistance at $70.00. Thankfully midday pork cutout values are higher, and if support remains stable then there's a chance that traders could try to push the contracts higher, but at this point the market remains cautious not wanting to be over zealous. October lean hogs are up $0.22 at $78.07, December lean hogs are down $0.45 at $70.50 and February lean hogs are down $1.07 at $71.62. The projected lean hog index for 10/5/2026 is down $0.41 at $79.22 and the actual index for 10/2/2026 is down $0.57 at $79.63. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.43 with a weighted average price of $76.09, ranging from $74.00 to $80.00 on 3,682 head and a five-day rolling average of $76.75. Pork cutouts total 162.06 loads with 144.75 loads of pork cuts and 17.31 loads of trim. Pork cutout values: up $1.17, $87.18.

Tuesday Morning Livestock Market Update - Hogs Rally as Cattle Markets Face Pressure

GENERAL COMMENTS:

Live cattle futures as well as feeder cattle prices were under pressure Monday with support levels still holding. Feeders have found a bit more strength than fats lately but with producers beginning to wean across the Plains, seasonal pressure may be on the horizon. Imported beef prices were lower with light trade activity. With recent immigration arrests, processors struggled with a shortage of plant workers, but most have returned to work this week. Slaughter volumes are expected to remain steady at some of the highest numbers we have seen in the calendar year.

Hogs found strength on Monday on slightly better pork demand. Pork cutout values were higher on Monday while slaughter numbers remain strong. With the momentum hog futures have seen, the market approached a two-week high.

	BULL SIDE		BEAR SIDE
1)	Strong cash trade in cattle brings hope for future price momentum.	1)	Margins bring concern to processors with boxed beef weakness and tight cattle supplies.
2)	Live cattle supplies are still tight, bringing tight slaughter numbers available for processors to purchase.	2)	The Mexican ports are slowly gaining traction with larger volumes of cattle crossing the border each week.
3)	The funds are holding a record short position in hog futures. Any supportive fundamental news could trigger significant short-covering.	3)	Record funds short positions are difficult to get much momentum without a more substantial storyline to cause a meaningful shift in trade bias.
4)	Cutout values show some new strength in pork demand.	4)	Hog supplies are plentiful, putting a damper on much hope for a continued rally.

Monday Closing Livestock Market Update - Cattle Hedge on the Side of Caution while Hogs Rally

GENERAL COMMENTS:

The livestock complex ended the day mixed, with the cattle contracts closing lower while the lean hog contracts rallied. New showlists are lower in Texas and Nebraska, but slightly higher in Kansas. December corn is down 1/2 cent per bushel and December soybean meal is steady. The Dow Jones Industrial Average is up 90.94 points and the NASDAQ is up 286.45 points.

LIVE CATTLE:

The live cattle complex ended the day lower as traders were fearful of being too supportive of the complex early in the week. But if Monday's boxed beef demand is any indication of the support that the market will at least see from boxed beef prices, that's a good start. October live cattle closed $1.60 lower at $217.25, December live cattle closed $1.50 lower at $219.97 and February live cattle closed $1.10 lower at $222.05. No cash cattle trade developed throughout the day, and both bids and asking prices remain elusive at this point. New showlists are lower in Texas and Nebraska, but slightly higher in Kansas. Monday's slaughter is estimated at 105,000 head -- 10,000 head more than a week ago and 5,000 head more than a year ago.

Last week Southern live cattle traded at mostly $221, which is steady with the previous week's weighted average, and Northern dressed cattle traded at $345 to $350, which is also steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 88,019 head. Of which 80% (70,390 head) were committed to the market's nearby delivery, while the remaining 20% (17,629 head) were committed to the market's deferred delivery option.

Boxed beef prices closed higher: choice up $4.07 ($378.26) and select up $4.08 ($358.57) with a movement of 67 loads (45.86 loads of choice, 9.20 loads of select, zero loads of trim and 11.78 loads of ground beef).

TUESDAY'S CATTLE CALL: Steady to somewhat lower. Given that packers were able to buy over 88,000 head in last week's fed cash cattle market, it likely means that they won't need to be as aggressive in this week's cash sector.

FEEDER CATTLE:

And in keeping in alignment with the live cattle complex the feeder cattle contracts also ended the day lower. October feeders closed $0.77 lower at $333.85, November feeders closed $1.02 lower at $330.12 and January feeders closed $1.95 lower at $322.60. At the Joplin Regional Stockyards in Carthage, Missouri, compared to last week and at their mid-session point, last week feeder steers and heifers were trading steady to $5.00 lower. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 10/2/2026: up $0.92, $337.76.

LEAN HOGS:

Meanwhile, with the stronger uptick in pork demand, the lean hog contracts were able to flourish throughout Monday's trade. October lean hogs closed $0.02 lower at $77.85, December lean hogs closed $0.82 higher at $70.95 and February lean hogs closed $1.37 higher at $72.70. Pork cutouts totaled 260.16 loads, with 236.84 loads of pork cuts and 23.32 loads of trim. Pork cutout values: up $1.53, $86.01. Hog prices closed $0.42 lower on the Daily Direct Afternoon Hog Report, with a weighted average price of $76.81 on 1,539 head. Monday's slaughter is estimated at 493,000 head -- 9,000 head more than a week ago and 2,000 head more than a year ago. The CME lean hog index 10/1/2026: down $0.51, $80.20.

TUESDAY'S HOG CALL: Higher. Given that there was more interest in pork cuts today, it's likely that packers could be more active in Tuesday's cash market.