GENERAL COMMENTS:
The livestock complex rounded out the day mostly higher as traders continued to lend the contracts ample support. No cash cattle trade developed throughout the day and won't likely until Thursday or Friday. September corn is down 4 1/2 cents per bushel and August soybean meal is up $3.30. The Dow Jones Industrial Average is up 179.37 points and NASDAQ is down 81.49 points.
LIVE CATTLE:
Overall, it was a mostly favorable day for the live cattle complex as some of the market's nearby contracts remained cautious. The vast majority of the contracts closed higher as traders continue to fixate their attention on the market's strong fundamental standing. August live cattle closed $0.25 lower at $224.97, October live cattle closed $0.50 lower at $221.12 and December live cattle closed $0.10 lower at $221.65. More than anything it seemed as though traders wanted to continue to push the complex higher, but in terms of the nearby contracts, traders also had to respect the fact that the market is trading at a record high price point. Although there's a chance that the market's fundamentals could prevail later this week -- there's too much risk involved in betting on the future when trading at all-time record highs. Traders need absolute reassurance before they can do much more in the technical arena. No cash cattle trade developed throughout the day.
Tuesday's slaughter is estimated at 112,000 head -- 6,000 head less than a week ago and 13,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.43 ($372.50) and select down $2.11 ($347.94) with a movement of 136 loads (73.03 loads of choice, 28.31 loads of select, 23.65 loads of trim and 10.87 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. If packers want to keep a foothold on the fed cash cattle market, they can't afford to sit idle and not participate week in and week out.
FEEDER CATTLE:
The feeder cattle complex didn't sit around and wait for the live cattle market's blessing before it traded higher. Instead, the feeder cattle complex ran strong all throughout the day rallying on the basis of thin feeder cattle supplies and unwavering demand. All of the feeder cattle contracts closed higher today, but again this afternoon, it was interesting to note that the contracts with the biggest daily gains were those of the furthest deferred months. August feeders closed $0.67 higher at $328.27, September feeders closed $0.87 higher at $328.57 and October feeders closed $0.90 higher at $326.87. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded $4.00 to $8.00 higher, and steer calves sold mostly steady. Feeder heifers traded steady to $3.00 lower except those weighing 800 pounds or more, which traded $10.00 higher. Heifer calves sold $5.00 to $10.00 stronger. Feeder cattle supply over 600 pounds was 64%. The CME feeder cattle index: up $1.03, $326.83.
LEAN HOGS:
Although pork demand was softer throughout the day, traders continued to support the contracts through Tuesday's end as they were at least able to look at the cash market and see some fundamental support there. August lean hogs closed $0.40 higher at $107.75, October lean hogs closed $0.47 lower at $90.50 and December lean hogs closed $0.05 lower at $82.85. Unfortunately, it wasn't because of one cut's massive decline that the lean hog complex closed lower, but rather because every single major cut (besides the picnic, which closed just $0.02 higher) closed lower. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $3.48 with a weighted average price of $113.95 on 10,947 head. Pork cutouts totaled 341.53 loads with 311.17 loads of pork cuts and 30.35 loads of trim. Pork cutout values: down $1.37, $118.15. Tuesday's slaughter is estimated at 476,000 head -- 12,000 head more than a week ago and 2,000 head less than a year ago. The CME lean hog index 7/18/2025: up $0.27, $108.20.
WEDNESDAY'S HOG CALL: Steady. The cash market advanced aggressively today, but packers still could need more hogs as they bought lightly last week.
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