Friday Midday Livestock Market Summary - Cattle Contracts Fall Sharply Lower

GENERAL COMMENTS:

The livestock complex is trading mixed into midday Friday, as the cattle contracts have fallen sharply lower, but the lean hog contracts are seeing mixed interest. Still no cash cattle trade has developed, but bids are on the table. September corn is steady and August soybean meal is up $1.90. The Dow Jones Industrial Average is up 207.22 points and the NASDAQ is up 186.13 points.

LIVE CATTLE:

If today's action isn't evidence of what emotional volatility can look like, then I don't know what would be. The cattle complex has fronted a magnificent rally throughout the week, only to come crashing lower on Friday. Why, you ask? Good question. One could say that traders have exhausted their efforts, someone could say that tariff chatters are taking their toll, another could highlight that traders are anxious as they've yet to see what fed cash cattle prices are going to do, but more than anything, I personally believe today's reverse action compared to the rest of the week simply comes as a emotion knee-jerk reaction as traders themselves don't know what else to do with the contracts at this point. On Thursday, the spot October contract closed at yet another new contract high, and although the market is currently seeing an unseasonal rally in boxed beef prices, traders are anxious to see what develops this week in the fed cash cattle market. Bids of $237 live are currently being offered in the South, and a dressed bid of $378 is currently being offered in Nebraska, but still no cattle have traded.

Boxed beef prices are mixed: choice down $1.16 ($377.78) and select up $0.96 ($354.71) with a movement of 76 loads (52.93 loads of choice, 11.03 loads of select, 5.72 loads of trim and 6.43 loads of ground beef)

FEEDER CATTLE:

Following the live cattle market's direction, the feeder cattle complex is also trading lower after scoring new all-time highs in the futures complex just yesterday afternoon. August feeders are down $8.57 at $340.07, September feeders are down $8.85 at $340.77 and October feeders are down $8.75 at $339.72. Today's action could have a slightly negative effect on the sale barns having sales today, but still, prices will remain high, as the fact isn't changing anytime soon that supplies are tight.

LEAN HOGS:

The lean hog complex is trading mixed into Friday's noon hour as the market has again seemed to establish some footing into the futures complex, and it's helpful that pork prices are higher, too. October lean hogs are up $0.07 at $91.00, December lean hogs are down $0.10 at $83.70 and February lean hogs are down $0.07 at $86.62. Given that today's trade is mixed in its nature, it's likely the contracts may be able to keep their somewhat higher trend through the day's end.

The projected lean hog index for 8/7/2025 is up $0.15 at $110.25, and the actual index for 8/6/2025 is up $0.50 at $110.10. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $0.85 with a weighted average price of $106.63, ranging from $102.00 to $111.00 on 1,390 head and a five-day rolling average of $111.54. Pork cutouts total 132.40 loads with 113.82 loads of pork cuts and 18.58 loads of trim. Pork cutout values: up $1.48, $117.81.