GENERAL COMMENTS:
The livestock complex again ended the day mixed, as cattle contracts received a little extra support from traders, while lean hog contracts ended the day lower. On Friday, the monthly Cattle on Feed report is set to be released. December corn is up 5 1/2 cents per bushel and December soybean meal is down $1.80. The Dow Jones Industrial Average is down 703.84 points and the NASDAQ is down 263.92 points.
Thursday's export report shared that beef net sales of 9,300 mt for 2026 were down 36% from the previous week and 37% from the prior 4-week average. The three largest buyers were Mexico (1,600 mt), South Korea (1,400 mt) and Taiwan (1,400 mt). Pork net sales of 27,300 mt for 2026 were down 25% from the previous week and 15% from the prior 4-week average. The three largest buyers were Mexico (10,700 mt), South Korea (3,500 mt) and Japan (2,900 mt).
LIVE CATTLE:
Despite the fact that boxed beef prices and fed cash cattle prices both ended the day lower, the futures market received a bone from traders as they were willing to mildly support the contracts through Thursday's end. October live cattle closed $0.77 higher at $218.00, December live cattle closed $1.12 higher at $218.27 and February live cattle closed $1.10 higher at $218.90. Do remember that on Friday the monthly Cattle on Feed report is set to be released. The cash cattle market saw bids offered throughout the day in both regions, but the day's movement was light. So far this week, the only strong test has been in the North, where dressed cattle have traded at $355 to $356, which is $9.00 to $10.00 lower than last week's weighted average, and some live sales have been marked in the North at $255 as well. The South has yet to trade cattle, although bids were offered throughout the day in Kansas at $255. But given that packers were able to secure more inventory in recent weeks and with Friday releasing the monthly Cattle on Feed report, this week's trade could be light in volume and slow to develop. It's also worth noting that the majority of the cattle that traded on Wednesday were marked for delivery on the week of September 7.
Thursday's slaughter is estimated at 103,000 head -- 3,000 head less than a week ago and 14,000 head less than a year ago.
Boxed beef prices closed lower: choice down $5.06 ($389.93) and select down $0.43 ($363.74) with a movement of 110 loads (88.85 loads of choice, 14.17 loads of select, zero loads of trim and 6.86 loads of ground beef).
FRIDAY'S CATTLE CALL: Lower. With packers having ample supply available to them, it's likely that prices will continue to be lower on Friday.
FEEDER CATTLE:
Apart from a couple of the nearby contracts, the feeder cattle complex was also able to end the day mostly higher. September feeders closed $0.20 lower at $328.92, October feeders closed $0.65 higher at $322.70 and November feeders closed $0.80 higher at $314.87. The cautious nature of the feeder cattle complex could be stemming from a number of factors: the fact that on Friday the monthly COF report is set to be released, the fact that on Monday the border reopens to Mexican cattle, or the fact that fed cash cattle prices are trading lower, which dampens the excitement in the feeding sector; all weigh heavily on the market. At the Winter Livestock Auction in Pratt, Kansas, compared to last week, there wasn't enough supply to accurately test those weighing 650 to 950 pounds. But good demand was seen on steers and heifers weighing under 600 pounds. Slaughter cows and bulls sold $2.00 to $6.00 lower. Feeder cattle supply over 600 pounds was 81%. The CME feeder cattle index 8/19/2026: down $0.51, $341.85.
LEAN HOGS:
And the topsy-turvy nature continues in the lean hog complex as the market ended the day mixed: lower in its nearby contracts but higher in its deferred contracts. More than anything, traders are hopeful that demand will increase in later months but remain uncertain about what to expect for tomorrow, let alone next week. October lean hogs closed $1.27 lower at $80.22, December lean hogs closed $0.67 lower at $70.75 and February lean hogs closed $0.42 lower at $73.82. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.24 with a weighted average price of $92.34 on 1,306 head. Pork cutouts totaled 256.15 loads, with 222.98 loads of pork cuts and 33.17 loads of trim. Pork cutout values: down $1.09 to $96.49. Thursday's slaughter is estimated at 451,000 head -- 23,000 head less than a week ago and 20,000 head less than a year ago. The CME lean hog index 8/18/2026: down $0.82, to $93.96.
FRIDAY'S HOG CALL: Lower. At this point, it's most likely that packers have secured all they need in the cash market aside from some minor cleanup trade.
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