Tuesday Closing Livestock Market Update - USDA's Announcement About the Border Reopening Rattled the Cattle Complex

GENERAL COMMENTS:

It was a lackluster day for the livestock complex as most of the contracts closed lower from a lack of fundamental support, and the cattle contracts closed significantly lower thanks to the USDA's announcement that the border will reopen to Mexican cattle imports. No cash cattle trade developed throughout the day. July corn is down 1/2 cent per bushel and July soybean meal is down $2.10. The Dow Jones Industrial Average is up 400.17 points and the NASDAQ is down 166.84 points.

LIVE CATTLE:

The live cattle complex rounded out the day lower as the market is less than pleased to hear the announcement from the USDA that Mexican cattle imports will resume, and that some ports will open as soon as July 5th. August live cattle closed $3.12 lower at $210.75, October live cattle closed $2.37 lower at $207.80 and December live cattle closed $2.30 lower at $208.35. Unfortunately, today's lower close pushed the spot August contract back below its 40-day moving average as traders remain skeptical of overly supporting the futures market if the market's fundamentals aren't going to be supportive. No cash cattle trade developed throughout the day, but asking prices were noted in the South at $225 plus. 

Tuesday's slaughter is estimated at 120,000 head, 2,000 head less than a week and a year ago.

Boxed beef prices closed mixed: choice up $0.04 ($395.60) and select down $4.04 ($380.06) with a movement of 108 loads (70.95 loads of choice, 20.26 loads of select, 9.17 loads of trim and 7.62 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Lower. Given that the board is lower and since it's a holiday-shortened week, it's unlikely that packers will show too much attention to the fed cash cattle market as they have some supply built up around them.

FEEDER CATTLE:

The feeder cattle complex traded lower all throughout the day as the market reacted negatively to the announcement from the USDA that the US would again be accepting Mexican cattle imports, and some as soon as July 5th. Although the reopening of the border is going to be done in phases and monitored heavily, and imported supplies won't likely overwhelm the market anytime soon, the sheer announcement alone casted a bearish tone over the entire cattle complex as cattlemen and traders alike wonder if the reopening of the board will take away from some of the market's top-side for domestic producers as buyers know that more supplies will eventually be available. DTN Livestock Editor, Jennifer Carrico, wrote on the manner which can be accessed here:

August feeders closed $4.65 lower at $306.02, September feeders closed $4.97 lower at $305.65 and October feeders closed $5.10 lower at $303.42. At Joplin Regional Stockyard in Carthage, Missouri, compared to last week, feeder steers traded steady to $20.00 higher, with the biggest gain seen on the four to five weight calves. Feeder heifers sold from $7.00 lower to $8.00 higher. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 6/30/2025: up $1.00, $315.07.

LEAN HOGS:

It was another lukewarm day for the lean hog complex as the market saw virtually no fundamental support as both cash prices and pork cutout values closed lower. Thankfully, some of the deferred lean hog contracts were able to round out the day higher, but the nearby contracts still closed lower. July lean hogs closed $1.10 lower at $109.00, August lean hogs closed $0.55 lower at $106.95 and October lean hogs closed $0.17 higher at $92.57. Pork demand has softened significantly this week as pork cutout values are waning and it's not because of one cut, but instead because of sharp declines on most of the cuts. This afternoon, every single major cut closed lower except for the ham, which was up just $0.99. The butt saw the sharpest daily decline as it fell $8.91, but the belly wasn't far behind with its $8.65 decline. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.33 with a weighted average price of $111.55 on 5,085 head. Pork cutouts totaled 341.77 loads, with 298.72 loads of pork cuts and 43.05 loads of trim. Pork cutout values: down $3.07, $112.30. Tuesday's slaughter is estimated at 478,000 head – 1,000 head more than a week ago and 8,000 head more than a year ago. The CME lean hog index 6/27/2025: down $0.26, $111.76.

WEDNESDAY'S HOG CALL: Lower. With consumer demand lagging, it's not likely that packers will show much interest in this week's holiday-shortened week.