GENERAL COMMENTS:
The livestock complex again closed mixed, with the cattle contracts rallying on the fact that boxed beef prices have improved, but the lean hog contracts fell short of a steady close as its market isn't seeing enough fundamental support. Asking prices in the South are noted at $235 to $237 but are still not established in the North. December corn is down 2 cents per bushel and December soybean meal is down $0.20. The Dow Jones Industrial Average is down 91.99 points and the NASDAQ is down 153.31 points.
LIVE CATTLE:
The live cattle complex successfully rounded out the day higher, although the market was faced with some challenges earlier in the day. It was especially helpful for traders to see the continued support of stronger boxed beef prices, which could become a stable trend now if support remains sufficient through the week's end. October live cattle closed $1.22 higher at $233.10, December live cattle closed $1.05 higher at $237.72 and February live cattle closed $1.10 higher at $240.72. It was also encouraging to see that the spot December contract was able to remain above its 40-day moving average, which signals technical strength. Asking prices in the South are noted at $235 to $237, but are still not established in the North. The bulk of the week's trade will likely wait until Thursday or Friday.
Tuesday's slaughter is estimated at 116,000 head, 4,000 head less than a week ago and 7,000 head less than a year ago.
Boxed beef prices closed higher: choice up $2.63 ($365.97) and select up $0.91 ($348.88) with a movement of 181 loads (102.86 loads of choice, 31.98 loads of select, 25.96 loads of trim and 19.80 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady/somewhat lower. Again, this week it's likely that prices could trade steady to somewhat lower as it's not likely that feedlot managers have enough leverage yet to push prices higher.
FEEDER CATTLE:
The feeder cattle complex only grew stronger the longer the day traded onward as the live cattle complex finally arrived to the party and prices turned higher in the day's afternoon. October feeder cattle closed $3.10 higher at $365.50, November feeders closed $3.45 higher at $364.25 and January feeders closed $3.80 higher at $359.00. The spot November contract did break beyond the market's resistance at $364, which will make for an interesting watch on Wednesday as the market will be pressured to turn the contracts lower and dip back below that price point, but some new fundamental support is arising from stronger boxed beef prices. So, it's yet to be seen how traders will handle the market's long-term resistance.
At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded mostly steady, but feeder heifers over 700 pounds sold steady to $4.00 higher, while heifers under 700 pounds traded $1.00 to $4.00 lower. Steer calves sold $10.00 to $20.00 higher and heifer calves sold steady. Feeder cattle supply over 600 pounds was 61%. The CME feeder cattle index 10/6/2025: up $0.77, $364.24.
LEAN HOGS:
The lean hog complex closed lower this afternoon as sufficient support failed to surface for the market. With both cash prices and pork cutout values lower, traders had little opportunity but to send the contracts lower as fundamental support hasn't stepped in and offered the contracts enough aid early this week. December lean hogs closed $1.10 lower at $86.17, February lean hogs closed $1.27 lower at $88.27 and April lean hogs closed $0.90 lower at $91.50. The biggest reason why the carcass price fell was because of the belly's $7.10 decline, and the putt's $2.17 fall. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.76 with a weighted average price of $98.63 on 7,238 head. Pork cutouts totaled 344.74 loads with 283.84 loads of pork cuts and 60.90 loads of trim. Pork cutout values: down $1.32, $106.03. Tuesday's slaughter is estimated at 488,000 head, 8,000 head more than a week ago and 3,000 head more than a year ago. The CME lean hog index 10/3/2025: down $0.82, $102.02.
WEDNESDAY'S HOG CALL: Higher. At some point this week packers are going to need to step into the market more aggressively to secure enough supply for the weeks ahead.
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