GENERAL COMMENTS:
Livestock futures ended mixed Tuesday with limited late-day pressure developing in cattle futures, offsetting early-day gains. Narrow losses in spot month October live cattle futures pulled price levels below the $240 per cwt level seen during early trade activity and caused some traders to wonder if early September could see some additional softness across the cattle market. Feeder cattle futures were more variable, with moderate losses in nearby trade unable to reduce triple-digit gains in early 2026 contract months. Hog prices closed higher on the Daily Direct Afternoon hog report, up $1.46 with a weighted average of $106.37 on 6,425 hogs. December corn closed up 2 3/4 at $4.23 and December soybean meal closed down $5.20 at $283.8. The Dow Jones Industrial Average is down 249.07 at 45,295.81.
LIVE CATTLE:
Live cattle futures noticed late-day turbulence Tuesday as traders returned from the long holiday weekend. Narrow price moves were seen at the closing bell, despite the early-day strong gains seen through the complex. October contracts led the nearby contracts lower, falling 12 cents per cwt. Although prices continue to remain near or at all-time highs, the inability to hold above the $240 per level in October futures seems to have created some uncertainty, at least in the short term. Pressure in wholesale beef values may not cause significant long-term pressure, but it is creating uncertainty about whether beef values will be able to continue this upward pace following the summer season, when beef demand traditionally remains strong. Cash cattle markets remain quiet late Tuesday, with bids and asking prices not established. Significant trade volume will likely be delayed until well into the second half of the week. New show lists appear to be mixed, higher in Texas, somewhat lower in Nebraska/Colorado, and lower in Kansas. October live cattle closed $0.13 lower at $239.525, December live cattle closed $0.38 higher at $241.15 and February live cattle closed $0.23 higher at $242.475.
Tuesday's slaughter is estimated at 120,000 head, 13,000 head more than a week ago and 5,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.99 ($413.42) and select down $3.83 ($386.17) with a movement of 122.27 loads (78.88 loads of choice, 29.04 loads of select, 4.76 loads of trim and 9.59 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Cash market activity remains undeveloped coming out of the Monday holiday break. Active interest may not develop until sometime Thursday or Friday.
FEEDER CATTLE:
Feeder cattle ended the trading session mixed following strong early-day support in all nearby contracts. Late-day pressure in 2025 contract months pushed nearby futures lower. The strong pressure in outside stock markets, as well as limited end-of-day support in live cattle trade, caused traders to back away from initial support during the first trading day of September. But the overall bullish tone of the market has not subsided at this point. According to the USDA National feeder cattle summary released Tuesday. Compared to last week, steers and heifers sold 5.00 to 10.00 higher. The supply of feeders was moderate as cooler weather made transporting livestock much less stressful, and overall volume was pretty large for a late summer week. This is the first time in 12 weeks that auction receipts topped 150K as ranchers are taking advantage of the handsome prices in the auction arenas nationwide. Others holding on are hoping that the upward trend continues and they can market their cattle at the top of the market. Prices at the auctions seemed to get higher every day this week, with many new records set. Light 3-weights in Kansas, Oklahoma, South Dakota and Missouri topped the 600.00 mark, with the highest being a package of 320-pound steers at Farmers and Ranchers Livestock in Salina, Kansas, selling at 670.00 or almost $2,150.00 per head. Widespread rainfall across much of Oklahoma this past week has improved soil conditions, and farmers are now preparing equipment for the upcoming wheat planting season. They are getting ready for grazing season by purchasing some ahead of time when they are needed. In addition, yearling 7-wt steers have now topped the 400.00 mark in several states as well. Pasture conditions are still better than normal for this point in the year, and cooler weather is a bonus; ranchers would gladly welcome a good rain at this point. Some feedlots are starting on silage chopping as the calendar is now flipping to September in preparation for the next year's feed supply. September feeders closed $0.53 lower at $364.25, October feeders closed $0.78 lower at $363.7 and November feeders closed $0.13 lower at $363.475. The CME Feeder Cattle Index for August 28: down $0.91, $364.47.
LEAN HOGS:
Lean hog futures closed higher in light to moderate trade as late-day support trickled back into the complex. A pullback in cattle futures allowed for traders in the hog complex who have been hovering on the sidelines to slowly step back into the market during early week trade. Continued frustrations with the lack of clear direction with an agreement with China continue to keep lean hog prices in limbo, although prices are doing a good job of holding last week's gains. October lean hogs closed $0.53 higher at $95.55, December lean hogs closed $0.78 higher at $88.175 and February lean hogs closed $0.45 higher at $90.075. Tuesday's hog slaughter is estimated at 489,000 head, 34,000 head more than a week ago and 3,000 head more than a year ago. Pork Cutouts totaled 290.17 loads with 250.77 loads of pork cuts and 39.40 loads of trim. Pork cutout values are down $0.20 at $114.12. The CME Lean Hog Index for August 28: down $0.26, $106.17.
WEDNESDAY'S HOG CALL: Steady to $1 Higher. Limited early morning direction is expected to be seen Wednesday, although the early week support in cash hog values and continued need for packers to gain access to market-ready hogs through the end of the holiday-shortened week should likely support initial cash hog bids.
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