GENERAL COMMENTS:
It was a successful day for the livestock complex as all of the contracts closed higher, as traders again believe in the market's strong fundamentals. On Wednesday, packer interest may lightly begin to develop in the cash cattle market, although trade isn't expected to develop until later in the week. September corn is down 5 1/2 cents per bushel and August soybean meal is down $0.20. The Dow Jones Industrial Average is down 61.90 points and the NASDAQ is down 137.03 points.
LIVE CATTLE:
Well, if Monday's trade compared to Tuesday's trade wasn't a wild turn of events, I don't know what would be considered such. It was rather impressive to see the live cattle contracts close anywhere from $2.00 to $3.00 higher, with the market's biggest changing factor seeming to be the confidence of traders. On Monday, traders were skeptical of what they should do with the cattle complex, but by Tuesday's arrival, traders seemed to shift their demeanor from one of uncertainty to full-fledged support. It did help from a fundamental standpoint that boxed beef prices closed over $4.00 higher, again showing just how strong consumer demand continues to be in this marketplace. August live cattle closed $3.37 higher at $234.27, October live cattle closed $3.00 higher at $227.10 and December live cattle closed $3.15 higher at $228.15. Asking prices are noted in the South at $238 to $240, but no trade has developed just yet.
Tuesday's slaughter is estimated at 115,000 head, 2,000 head more than a week ago but 6,000 head less than a year ago.
Boxed beef prices closed higher: choice up $4.15 ($369.94) and select up $4.35 ($345.94) with a movement of 105 loads (59.58 loads of choice, 17.99 loads of select, 17.12 loads of trim and 10.79 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. It's a coin toss on what trade is going to do this week in the cash cattle market as packers were able to get some additional supply built up last week, but in order to remain from being short bought in the weeks ahead, it's vital that they continue to procure cattle steadily.
FEEDER CATTLE:
Traders weren't bashful whatsoever about advancing the feeder cattle contracts throughout Tuesday's trade as they almost seemed to say: Monday's uncertainty was overrated, the market needs to trade higher. And so higher the market traded. The spot September feeder cattle contract came right up against resistance pressure but wasn't bold enough to conquer that price point ahead of the day's close. If fundamental support remains encouraging throughout the rest of the week, there's a chance that traders could elect to challenge that threshold, but then again, how much more upward potential does this market truly possess? Time will tell. August feeders closed $5.65 higher at $341.05, September feeders closed $5.10 higher at $339.55 and October feeders closed $5.42 higher at $337.82. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded uneven but mostly steady, but steers over 800 pounds traded $3.00 lower. Feeder heifers traded steady to $3.00 lower. The quality of calves really determined their price this week as the weaned, higher quality calves traded higher than last week's average, but the un-weaned lower quality calves traded at a discount. Feeder cattle supply over 600 pounds was 71%. The CME feeder cattle index 8/4/2025: up $0.21, $336.03.
LEAN HOGS:
With the help of solid market fundamentals, the lean hog complex was able to again round out the day higher and successfully close above the market's resistance threshold at $91.00 in the spot October contract. August lean hogs closed $0.60 higher at $108.77, October lean hogs closed $1.90 higher at $92.80 and December lean hogs closed $1.72 higher at $85.17. So long as pork demand continues to show strong demand, traders may continue to advance the contracts. Hog prices averaged $113.52 on the Daily Direct Afternoon Hog Report, on 11,800 head and a five-day rolling average of $113.10. Pork cutouts totaled 274.10 loads with 253.19 loads of pork cuts and 20.91 loads of trim. Pork cutout values: up $0.33, $118.12. Tuesday's slaughter is estimated at 482,000 head, 14,000 head more than a week ago and 1,000 head more than a year ago. The CME lean hog index 8/1/2025: down $0.27, $109.99.
WEDNESDAY'S HOG CALL: Steady. Tuesday's movement was massive, so there's a chance that Wednesday's trade may not be as aggressive.
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