GENERAL COMMENTS:
The livestock complex closed mostly higher Wednesday afternoon as the cattle complex continued to rally aggressively through the day's end, and the lean hog contracts turned mixed ahead of the day's close, thanks to the slight uptick in demand. A little bit of cash cattle trade developed in Nebraska, where prices were steady to a tick higher than last week's weighted average, but no trade developed in the South. December corn is up 3/4 cent per bushel and December soybean meal is up $1.30. The Dow Jones Industrial Average is up 16.04 points and the NASDAQ is down 142.09 points.
LIVE CATTLE:
It was an awe-struck day for the live cattle complex as the contracts leaped $2.00 to $3.00 higher as traders shot the market straight up, thanks to the continued support of the market's fundamentals. Yes, choice cuts may have closed slightly lower, but you still can't say anything negative about beef demand when choice cuts are over $4.00/pound. There was a thin movement in the cash cattle market in Nebraska, where packers were able to get some dressed cattle bought at $385 and live cattle at $245, which is steady to tick higher than last week's weighted average. Still no trade has developed in the South, but asking prices remain firm at $240. October live cattle closed $3.50 higher at $234.85, December live cattle closed $3.20 higher at $236.45 and February live cattle closed $2.70 higher at $237.37. Today's technical breakout does indeed score another new contract high for the spot October contract.
Wednesday's slaughter is estimated at 118,000 head, 2,000 head more than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $1.35 ($405.85) and select up $3.40 ($383.16) with a movement of 102 loads (61.21 loads of choice, 21.96 loads of select, 8.32 loads of trim and 10.40 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $2.00 higher. With the continued support of the futures complex and feedlots still in a position where they can elect to roll their showlists over if prices aren't what they want, it's likely that cattle will trade steady to somewhat higher later this week when the market sets its tone.
FEEDER CATTLE:
It was a fantastic day for the feeder cattle complex as the market shot sharply higher and didn't look back. Between the surge in boxed beef demand and the continued support in feeder cattle sales in the countryside, the feeder cattle complex had no reservations about trading higher through Wednesday's hours. September feeders closed $5.67 higher at $358.10, October feeders closed $5.37 higher at $357.67 and November feeders closed $5.30 higher at $356.07. At the Winter Livestock Auction in Dodge City, Kansas, compared to last week, steer and heifers under 650 pounds sold $10.00 lower but reputation calves of that weight brought up to $10.00 higher. Steer and heifers over 600 pounds were not well tested, but a higher undertone was noted. Feeder cattle supply over 600 pounds was 46%. The CME feeder cattle index 8/19/2025: up $0.60, $345.58.
LEAN HOGS:
Thankfully, traders took note of the slight uptick in demand and were willing to allow some of the late 2025/early 2026 contracts to close higher ahead of Wednesday's end. The carcass price was mainly supported by the rib's $3.19 jump, and the picnic's $3.01 gain, which helped offset the $2.72 fall in the belly. Traders remain unsure of what to do with the lean hog futures contracts, which is why monitoring of the market's fundamentals is going to remain all the more important for the next little while. October lean hogs closed $0.20 lower at $89.95, December lean hogs closed steady at $82.97 and February lean hogs closed $0.07 higher at $85.87. Hog prices closed $0.15 higher on the Daily Direct Afternoon Hog Report, with a weighted average price of $109.81 on 3,808 head. Pork cutouts totaled 275.38 loads with 244.74 loads of pork cuts and 30.63 loads of trim. Pork cutout values: up $0.60, $113.01. Wednesday's slaughter is estimated at 480,000 head, 2,000 head more than a week ago and 1,000 head less than a year ago. The CME lean hog index 8/18/2025: down $0.52, $109.06.
THURSDAY'S HOG CALL: Lower. At this point, packers have likely fulfilled the vast majority of their cash needs for the week.
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