GENERAL COMMENTS:
It was a wild, chaotic, emotional day of trading for the cattle complex as no one was sure how to properly handle the news of a positive case of New World screwworm being detected in a human over the weekend. Ahead of the day's close, the cattle complex closed just slightly lower, as opposed to the massive price swing it saw earlier in the day. October lean hogs are up $0.20 at $91.40, December corn is up 3/4 cent per bushel and December soybean meal is down $0.60. The Dow Jones Industrial Average is down 349.27 points and the NASDAQ is down 47.24 points.
LIVE CATTLE:
Monday was a wild, bumpy ride for the live cattle complex, as at the day's start, the market gushed sharply lower as traders weren't sure what to do about hearing over the weekend that the CDC confirmed that a human who had recently been traveling abroad but was in Maryland had contracted New World screwworm. The ag sector has taken substantial measures to limit the likelihood that the parasitic flies would come to the U.S. through banning the imports of Mexican cattle, but no one suspected that the first positive case would be on a human. Nevertheless, the news created turmoil for the market throughout most of the day, but by the day's close, the market's loss was minimal. October live cattle closed $1.05 lower at $236.82, December live cattle closed $1.10 lower at $238.05 and February live cattle closed $0.82 lower at $239.37. The market's cautious, hesitant tone could likely remain a theme throughout the majority of the week. New showlists appear to be lower in all major feeding areas. Monday's slaughter is estimated at 107,000 head, 7,000 head more than a week ago and 7,000 head less than a year ago.
Last week Northern dressed cattle traded at mostly $385, which is $2.00 higher than the previous week's weighted average. Southern live cattle traded at mostly $240, which is $5.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 79,192 head. Of that 62% (49,363 head) were committed to the market's nearby delivery, while the remaining 38% (29,829 head) were committed to the market's deferred delivery.
Boxed beef prices closed higher: choice up $0.58 ($408.49) and select up $1.72 ($385.38) with a movement of 63 loads (33.75 loads of choice, 11.98 loads of select, 7.64 loads of trim and 9.34 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Packers did end up paying more money for cattle last week and purchased a sizeable volume. Most retailers' buying for Labor Day is most likely done, which could affect boxed beef prices. And if boxed beef prices soften much, packers will be reluctant to push cash prices higher.
FEEDER CATTLE:
The feeder cattle complex may have followed the same trend as the live cattle market, but sales in the countryside weren't affected whatsoever. And if anything, as evidenced by the continued climb of the CME feeder cattle index, buyers need more cattle and are willing to pay up for them, regardless of whatever the board is doing. September feeders closed $0.77 lower at $361.90, October feeders closed $1.75 lower at $360.75 and November feeders closed $1.92 lower at $358.92. At the mid-session point for Joplin Regional Stockyards in Carthage, Missouri, compared to last week, feeder steers were selling $3.00 to $17.00 higher and feeder heifers were trading mostly $3.00 to $15.00 higher. Feeder cattle supply over 600 pounds was 72%. The CME feeder cattle index 8/22/2025: up $7.74, $357.92.
LEAN HOGS:
With the help of plenty of consumer demand, the lean hog complex was able to successfully round out the day higher. The market is again nearing resistance levels, which could cause it some trouble, but at this point, with consumers helping to push pork prices higher, traders have had enough support and haven't been faced with much technical pushback that they've been able to continue to push the contracts higher. October lean hogs closed $0.20 higher at $91.40, December lean hogs closed $0.37 higher at $84.75 and February lean hogs closed $0.37 higher at $87.50. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.99 with a weighted average price of $105.67 on 2,370 head. Pork cutouts totaled 321.05 loads with 285.67 loads of pork cuts and 35.38 loads of trim. Pork cutout values: up $1.28, $114.17. Monday's slaughter is estimated at 455,000 head, 26,000 head less than a week ago and 20,000 head less than a year ago. The CME lean hog index 8/21/2025: down $0.48, $107.84.
TUESDAY'S HOG CALL: Higher. With pork demand strong, packers could likely be a tick more aggressive in Tuesday's market.
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