GENERAL COMMENTS:
The livestock complex had a successful day as all three of the markets were able to close higher. Still no trade has developed in the fed cash cattle market, but with feedlots hoping to see prices higher yet again, it's not surprising to see trade being delayed. December corn is down 3 1/2 cents per bushel and December soybean meal is up $1.90. The Dow Jones Industrial Average is up 218.16 points and the NASDAQ is down 36.87 points.
LIVE CATTLE:
The live cattle complex was again able to secure a higher close for the day, as traders feel confident in the market's fundamental position. It's yet to be seen what will happen in this week's fed cash cattle trade as no sales have developed yet and no bids or asking prices have been posted, but with demand only seasonally expected to grow with the holiday season not far away, and with fed cattle supplies going to tighten in the fourth quarter of 2025 and into 2026, there's a good chance that prices could be higher again this week. October live cattle closed $1.82 higher at $243.67, December live cattle closed $1.77 higher at $245.42 and February live cattle closed $1.75 higher at $246.27.
Tuesday's slaughter is estimated at 117,000 head, 3,000 head less than a week ago and 7,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $2.75 ($371.93) and select down $0.89 ($352.57) with a movement of 128 loads (93.82 loads of choice, 21.21 loads of select, 2.78 loads of trim and 9.86 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat higher. Packers were able to buy a sizeable volume last week in the fed cash cattle market, but with showlists expected to remain thin through 2025, packers are going to need to stay active in the market to avoid being short bought on any given week.
FEEDER CATTLE:
The feeder cattle complex was able to close mostly higher as traders remained committed to mildly supporting the market thanks to the market's strong fundamental position. It's yet to be known how fed cash cattle will trade this week, but buyers in the countryside didn't seem concerned anymore about the market's disruption on Friday, as buyers were again aggressively filling their orders. November feeders closed $0.80 higher at $373.47, January feeders closed $1.10 higher at $370.27 and March feeders closed $1.17 higher at $367.67. At Roswell Livestock Auction in Roswell, New Mexico, compared to last week, steer and heifer calves traded $10.00 to $15.00 higher, and feeder steers and heifers traded steady to $5.00 higher. Slaughter cows and bulls sold steady. Feeder cattle supply over 600 pounds was 23%. The CME feeder cattle index 10/20/2025: down $3.16, $372.99.
LEAN HOGS:
The lean hog complex finally found some support as the contracts rallied through Tuesday's end, and without much fundamental support. Sure, the cash hog market saw a large volume of hogs traded, but pork cutout values fell again. December lean hogs closed $1.20 higher at $83.27, February lean hogs closed $1.02 higher at $85.75 and April lean hogs closed $1.05 higher at $90.00. Unfortunately, most of the major cuts closed lower Tuesday afternoon, but the biggest day-over-day decline was seen in the picnic, which fell $3.57 lower. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.22 with a weighted average price of $89.52 on 16,970 head. Pork cutouts totaled 346.40 loads with 300.79 loads of pork cuts and 45.61 loads of trim. Pork cutout values: down $1.49, $100.59. Tuesday's slaughter is estimated at 492,000 head, 1,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index 10/17/2025: up $0.54, $95.58.
WEDNESDAY'S HOG CALL: Lower. Given that packers were able to secure such a large volume on Tuesday, it's likely that they'll need more hogs still this week, but they won't have to buy them at a higher price.
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