GENERAL COMMENTS:
Livestock futures focused on aggressive buyer support returning to the cattle trade on Tuesday. This put the focus on higher live cattle and feeder cattle futures. August live cattle futures once again established contract highs, moving to $222.40 per cwt at the closing bell, representing a gain of $3.05 per cwt. This continues to add focus to the bullishness still present in the cattle market and allows traders to focus on market fundamentals to determine if cash prices and beef values will remain as aggressive as Tuesday's futures trade. Triple-digit gains held in all cattle contracts, focusing on the potential of follow-through buyer interest midweek, although at this point, there remains the probability that market adjustments can take place at any time. Hog futures remained sluggish with limited overall direction and price movement seen through the entire complex Tuesday. Hog prices closed higher on the Daily Direct Afternoon hog report, up $3.02 with a weighted average of $112.6 on 12,537 hogs. December corn closed up 1 3/4 at $4.198 and December soybean meal closed down $2.20 at $279.5. The Dow Jones Industrial Average is down 436.36 at 44,023.29.
LIVE CATTLE:
Live cattle futures posted an explosive day Tuesday as traders quickly rebounded from early-week losses and moved prices to new contract highs in spot month contracts. The ability to not only push front month futures higher but aggressively support all contract months is helping build an even more bullish market tone heading into midweek, with the focus likely to be placed on the ability to sustain and increase cash cattle price levels at the end of the week. August contracts are getting much closer to all-time highs in the live cattle complex, but additional support will need to develop in the coming days to move ahead of highs seen last month. Cash cattle markets remain quiet Tuesday afternoon, with a few asking prices noted in the South at $232-plus. Bids are very hard to find at this point in the week. Significant trade volume will likely be delayed until well into the second half of the week. August live cattle closed $3.05 higher at $222.4, October live cattle closed $2.50 higher at $219.275 and December live cattle closed $2.15 higher at $219.6.
Tuesday's slaughter is estimated at 118,000 head, steady with a week ago and 1,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.63 ($377.7) and select down $2.00 ($362.58) with a movement of 147.17 loads (101.51 loads of choice, 30.38 loads of select, 4.11 loads of trim and 11.17 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Cash market activity remains at a standstill, with just a few early asking prices developing. It is likely that cash trade will not develop until late in the week, with both sides focusing on sustaining the support seen in cash markets last week.
FEEDER CATTLE:
Feeder cattle support quickly and aggressively developed during morning trade. Although sluggish activity was seen in initial trade, buyers quickly moved back into the market following the retraction seen Monday. It is uncertain if traders feel that the pressure Monday was enough of a market correction in order to sustain longer-term follow through buying, but the aggressiveness of trade interest did not slow through the Tuesday session. Uniform buyer support was seen in all nearby contracts, with all contracts through January futures posting gains within a 10-cent per cwt range, from $2.72 - $2.82 per cwt higher at the closing bell. The potential for additional strong technical and fundamental support developing through the end of the year is helping to bring additional trade volume back into the complex. August feeders closed $2.80 higher at $322.275, September feeders closed $2.80 higher at $322.375 and October feeders closed $2.78 higher at $320.475. The CME Feeder Cattle Index for July 11: up $1.21, $321.1.
LEAN HOGS:
Lean hog futures remained as quiet as literally possible considering the aggressive market surge in cattle futures. This seemed to essentially take the wind out of most lean hog futures sails for the trading session, with the lean hog complex seeming to be more focused on market apathy than any sense of direction in either way. July and August futures etched out narrow to moderate gains at the end of the session while limited price pressure developed in the rest of the complex. Given that the attention was squarely focused on cattle trade and outside markets during the session, traders are expected to return on Wednesday with the possibility to focus on fundamental market conditions through the week. The wide price premium seen in summer contracts, continues to hold, with trades still concerned about the ability to sustain active pork demand through the end of the year and well into 2026, as questions about tariffs and how this will affect export demand is a significant hurdle traders are wrestling with. July lean hogs closed $0.15 higher at $106.85, August lean hogs closed $0.70 higher at $103.925 and October lean hogs closed $0.20 lower at $87.475. Tuesday's hog slaughter is estimated at 474,000 head, 5,000 head more than a week ago and steady with a year ago. Pork Cutouts totaled 295.71 loads with 271.67 loads of pork cuts and 24.04 loads of trim. Pork cutout values are up $0.17 at $114.02. The CME Lean Hog Index for July 11: up $0.15, $107.25.
WEDNESDAY'S HOG CALL: Steady to $1 Higher. Packer interest is expected to remain midweek, with the focus on the continued stability of packer supply while demand remains strong.
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