GENERAL COMMENTS:
It was a painstaking day to watch the cattle contracts close sharply lower as traders elected to partake in some profit-taking following Thursday's record high close. Some light cash cattle trade has developed in the South at $235, which is $0.50 lower than last week's weighted average, and in the North at $380, which is $4.00 lower than last week's weighted average. September corn is down 1 3/4 cents per bushel and August soybean meal is up $0.70. The Dow Jones Industrial Average is up 168.73 points and the NASDAQ is up 176.25 points.
From Friday to Friday, livestock futures scored the following changes: August live cattle up $2.43, October live cattle up $2.30; August feeder cattle up $4.83, September feeder cattle up $6.45; August lean hogs up $1.55, October lean hogs up $0.63; September corn down $0.07 and December corn down $0.05.
LIVE CATTLE:
I have a feeling today's closing comments are going to get more clicks than what we have been seeing in recent weeks as it's easy to let the market take care of itself when prices are high and things are going smoothly – but when shit hits the fan, cattlemen, traders and everyone in between knows that it's time to buckle down and to try to make sense of the mess at hand.
So, what happened today? Earlier throughout the week, the live cattle complex was robustly supported by traders, and the market even managed to close at a new all-time high position Thursday afternoon. But on Friday, all the bullishness was sucked out of the futures complex as the contracts closed anywhere from $4.00 to $6.00 lower. August live cattle closed $6.20 lower at $232.55, October live cattle closed $6.25 lower at $225.97 and December live cattle closed $5.70 lower at $227.92.
And while I'd like to put your mind at ease, unfortunately, the market doesn't have to have a logical or even rational reason why it trades the way it does. And more than anything, Friday's demise was likely caused by massive profit-taking as traders saw the record-high position scored Thursday afternoon and most likely elected to sell their positions on Friday to "be on the safe side". What happened throughout Friday's trade is now done, and the next real question becomes: What's next? Could Thursday's record high close have been the high score for this bullish fundamental run? Or will the market regain its focus in the days/weeks to come and again trade higher? As always, time will tell, but demand will have a big influence on how things pan out.
At the time of this writing, only a handful of cash cattle sales have been reported, but currently, Southern live cattle are trading at $235, which is $0.50 lower than last week's weighted average. Northern dressed cattle are trading at mostly $380, which is $4.00 lower than the previous week's weighted average.
Friday's slaughter is estimated at 88,000 head, 5,000 head less than a week ago and 17,000 head less than a year ago. Saturday's slaughter is projected to be around 1,000 head. The week's total slaughter is estimated to be around 536,000 head, 1,000 head more than a week ago and 51,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.10 ($378.84) and select up $1.34 ($355.09) with a movement of 103 loads (69.68 loads of choice, 14.46 loads of select, 7.22 loads of trim and 12.04 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Before we can anticipate what next week's market will do, we need to see how this week's trade pans out.
FEEDER CATTLE:
It was a miserable day for the feeder cattle complex, too, because although the CME feeder cattle index continues to climb higher and higher, showing evidence of continued buyer support, the futures market tanked as traders elected to participate in some profit taking, which left the contracts no other option but to close sharply lower -- limit lower to be exact. August feeder closed $9.25 lower at $339.40, September feeders closed $9.25 lower at $340.37 and October feeders closed $9.25 lower at $339.22. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week, feeder steers traded unevenly steady, but feeder heifers traded steady to $3.00 higher. Steer and heifer calves sold $5.00 to $9.00 higher. Slaughter cows sold $2.00 higher and slaughter bulls sold $4.00 higher. Feeder cattle supply over 600 pounds was 61%. The CME feeder cattle index 8/7/2025: up $0.24, $337.21.
LEAN HOGS:
The lean hog complex rounded out the day mixed as the market was thankful to see the slight uptick in pork demand, but traders weren't confident enough to again push the contracts higher. October lean hogs closed $0.25 lower at $90.67, December lean hogs closed $0.02 lower at $83.77 and February lean hogs closed $0.15 higher at $86.85. The $4.07 jump in the belly, along with the $3.14 increase in the butt and the $2.22 increase in the loin, all helped the carcass price close higher. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $4.49 with a weighted average price of $106.73 on 2,672 head. Pork cutouts totaled 342.97 loads with 298.30 loads of pork cuts and 44.67 loads of trim. Pork cutout values: up $1.08, $117.41. Friday's slaughter is estimated at 470,000 head, steady with a week ago and 23,000 head more than a year ago. Saturday's slaughter is projected to be around 51,000 head. The CME lean hog index 8/6/2025: up $0.05, $110.10.
MONDAY'S HOG CALL: Lower. Packers rarely jump aggressively into the cash market on Monday.
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