Monday Midday Livestock Market Summary - Contracts Trade Lower at the Week's Start

GENERAL COMMENTS:

The livestock complex is taking a cautious approach to Monday's trade as most of the livestock contracts are currently trading lower. With there being sizeable outside pressure looming over the livestock complex -- a lower trend is expected through the day's close. New showlists appear to be lower in all major feeding states. May corn is down 4 1/4 cents per bushel and May soybean meal is down $7.10. The Dow Jones Industrial Average is down 41.77 points and NASDAQ is up 91.13 points.

LIVE CATTLE:

There's been a plethora of stress and pressure overcoming the livestock complex, and again today, that's pressuring the live cattle contracts specifically to trade lower. Combine the external noise of the new developments between the U.S. and Iran, with the raw fact that last week, fed cash cattle prices traded lower -- and it should come as no real surprise that the live cattle contracts are again trading lower. April live cattle are down $0.27 at $232.05, June live cattle are down $0.52 at $228.60 and August live cattle are up $0.77 at $227.02. New showlists appear to be lower in all major feeding states.

Last week, Southern live cattle traded at mostly $244, which is $5.00 lower than the previous week's weighted average. Northern dressed cattle traded at mostly $382 to $383, which is $5.00 to $6.00 lower than the previous week's weighted average.

Boxed beef prices are higher: choice up $0.65 ($380.49) and select up $2.17 ($376.48) with a movement of 30 loads (21.97 loads of choice, 3.26 loads of select, zero loads of trim and 4.53 loads of ground beef).

FEEDER CATTLE:

And without the backing of the live cattle market's support, the feeder cattle contracts also find themselves trading lower into Monday's noon hour. March feeders are down $0.70 at $354.72, April feeders are down $0.90 at $350.37 and May feeders are down $0.97 at $346.22. Until some essence of support arises, a sideways, slightly lower trend is likely for the feeder cattle complex.

LEAN HOGS:

The lean hog complex is taking a mixed approach into Monday's noon hour as the nearby contracts are trading slightly lower, while the deferred contracts are trading higher. It is worth noting that midday pork cutout values are higher as that's something that traders will always gladly accept. April lean hogs are down $0.27 at $95.40, June lean hogs are down $0.20 at $109.35 and July lean hogs are down $0.15 at $111.52.

The projected lean hog index for 2/27/2026 is up $0.25 at $89.69, and the actual index for 2/26/2026 is up $0.32 at $89.44. Hog prices are unavailable on the Daily Direct Morning Hog Report because no hogs have traded yet. The only thing disclosed on the report is that the market's five-day rolling average sits at $91.32. Pork cutouts totaled 165.39 loads with 135.27 loads of pork cuts and 30.13 loads of trim. Pork cutout values: up $1.86, $99.63.

Monday Morning Livestock Market Update - Cattle Futures May Show Follow-Through Selling

GENERAL COMMENTS:

Cattle futures plummeted for a second consecutive day, with the nearby June contract posting the lowest close since Dec. 31, 2025. Selling momentum drove futures below technical support, adding to the weakness. Lower cash cattle trade took place on Friday, adding to the pressure. There could be follow-through liquidation today on continued uncertainty over the JBS strike, the Iran situation and lower cash. Northern dressed cattle traded $5 lower and southern live cattle traded $5 lower. This combination may not bode well for the market in the near term. Boxed beef prices closed higher with choice up $1.95 and select up $3.52. The Commitment of Traders report showed fund traders adding 1,911 live cattle futures positions, bringing their net-long positions to 116,963. They added 878 contracts in feeder cattle, bringing their net-long position to 19,634.

Hog futures closed mixed with weakness through the October contract and higher prices after that. The December and later contracts continued to make new highs. Optimism over increased demand continues to underpin the market. The slaughter pace remains strong as packers need to meet demand. A significant volume of cash hogs traded on Friday, with the price down $0.62. Packers may begin the week aggressively, similar to last week. They need hogs to maintain the increased slaughter pace. Pork cutout values increased by $0.39. The Commitment of Traders report showed the funds as net sellers, reducing their long position by 85 contracts to a net long of 111,133.

	BULL SIDE		BEAR SIDE
1)	Liquidation generally runs its course over a two- or three-day period. Today is day three. The lower prices might find buying interest.	1)	There is too much uncertainty both in the market and in the outside markets that may keep pressure on cattle futures.
2)	Live cattle futures are quite a bit below cash and may be overdone to the downside.	2)	The weakness of cash cattle last week may be the beginning of further cash weakness over the next few weeks.
3)	The trend in hog futures is up, and the weakness on Friday may have been positioning before the end of the month.	3)	The optimism over pork demand will need to find continued underlying cash and cutout support or it will run out of strength.
4)	The hog slaughter pace remains strong, and packers may be willing to bid up today to purchase early.	4)	Trading activity may drift to begin the month as traders wait to see the strength of cash and cutouts.