GENERAL COMMENTS:
It was an exhilarating day for the cattle complex as both the live cattle and feeder cattle markets ran to new highs. Still no cash cattle trade has developed. September corn is down 3/4 cent per bushel and August soybean meal is down $1.80. The Dow Jones Industrial Average is up 507.85 points and the NASDAQ is up 127.34 points.
LIVE CATTLE:
It was an astonishing day for the live cattle complex as the market scored yet again new contract highs thanks to the faithful support of traders. August live cattle closed $2.05 higher at $227.02, October live cattle closed $2.37 higher at $223.50 and December live cattle closed $2.25 higher at $223.90. It was extremely supportive to see the contracts close that much higher, as it's yet to be seen what the fed cash cattle market is going to do later this week, and especially given the fact that it's a Cattle on Feed report week, which typically means that traders are going to act more cautiously than anything. But even so, traders elected to advance the contracts as they believe in the market's fundamental footing. Still no cash cattle trade has developed, and it's not likely that trade will develop until Thursday, or even more likely, on Friday.
Wednesday's slaughter is estimated at 114,000 head, 1,000 head more than a week ago and 9,000 head less than a year ago.
Boxed beef prices closed lower: choice down $4.98 ($367.52) and select down $2.55 ($345.39) with a movement of 164 loads (113.64 loads of choice, 27.99 loads of select, 4.89 loads of trim and 17.31 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. At this point, I think it's likely that, worst-case scenario, the market trades steady as feedlot managers are keen on the market's bullish nature right now and want to continue to see cash prices move higher.
FEEDER CATTLE:
Sure, the live cattle contracts closed higher, but nothing came close to matching the electrifying energy that engulfed the feeder cattle complex today. It was exhilarating to watch the contracts trade $2.00 to $3.00 higher ahead of the day's noon hour, but by closing time, prices had advanced as much as $4.00 higher in the furthest deferred months. August feeders closed $3.25 higher at $331.52, September feeders closed $3.32 higher at $331.90 and October feeders closed $3.77 higher at $330.65. And more than anything, today's bullish surge was just another technical acknowledgement of the strong fundamental position of the cattle market and traders recognizing the fact that supplies are going to remain inherently thin for the foreseeable future. At Bassett Livestock Auction in Bassett, Nebraska, compared to last week, the best tested group was on those weighing 1,000 to 1,050 pounds, which traded $13 to $23 higher. It was noted on the sale report that several rain showers in the area over the past few weeks have helped, and that sandhill pastures are improving. Feeder cattle supply over 600 pounds was 95%. The CME feeder cattle index 7/22/2025: up $0.61, $327.44.
LEAN HOGS:
The lean hog complex closed mostly lower, although a few of the nearby contracts were able to maintain slightly higher positions through the day's close, likely because of the continued support in the cash market. August lean hogs closed $0.72 lower at $108.47, October lean hogs closed $0.40 higher at $90.90 and December lean hogs closed $0.27 lower at $82.57. Packers were undeniably short bought headed into this week, which is why the cash prices have jumped up so aggressively. Hog prices closed higher on the Daily Direct Morning Hog Report, up $1.02 with a weighted average price of $114.97 on 11,227 head. Pork cutouts total 284.52 loads with 255.15 loads of pork cuts and 29.37 loads of trim. Pork cutout values: down $0.91, $117.24. Wednesday's slaughter is estimated at 473,000 head, 7,000 head more than a week ago and 7,000 head less than a year ago. The CME lean hog index 7/21/2025: up $0.39, $108.59.
THURSDAY'S HOG CALL: Steady. It's tough pinpointing exactly when packers are going to have enough supply built up, but it's likely nearing that point.
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