GENERAL COMMENTS:
The livestock complex ended the day mixed again, with the cattle contracts disappointed that no more fundamental support is developing. In contrast, the lean hog contracts ended the day a touch stronger. Some light cash cattle trade has developed, but no large volumes have traded yet to say that an accurate trend has been established. December corn is up 20 1/4 cents per bushel and December soybean meal is up $4.20. The Dow Jones Industrial Average is down 21.58 points and the NASDAQ is up 143.04 points.
LIVE CATTLE:
All in all, it was a disappointing day for the live cattle complex as the market seemed to come to terms with the reality that it's unlikely that fundamental support is going to arise later this week given that packers were able to secure a plethora of cattle last week in the cash market. And while, yes, at least boxed beef prices closed higher, that's still not enough support to help traders conquer the market's resistance at its 40-day moving average. August live cattle closed $2.17 lower at $230.57, October live cattle closed $2.52 lower at $223.80 and December live cattle closed $2.90 lower at $222.80. Some light cash cattle trade has been noted in Nebraska at $367 to $368, and in Iowa at $232, but there's not been enough cattle traded to say that an accurate trend has developed just yet. It is worth noting that news is spreading of a major packer in Kansas cutting production hours this week. If true, that will affect this week's fed market. No other trade has been noted. Asking prices in the South are noted at $236 to $240.
Wednesday's slaughter is estimated at 106,000 head –- steady with a week ago but 11,000 head less than a year ago.
Wednesday's WASDE report shared a mostly bearish outlook for the cattle and beef markets of 2026. Beef production for 2026 was decreased by 321 million pounds as fed cattle slaughter speeds are lower than anticipated, and the market isn't seeing as many cows slaughtered either. The quarterly steer price projections for 2026 and 2027 were disheartening compared to last month's estimates as steers in the third quarter are expected to average $242 (down $13.00 from last month); steers in the fourth quarter of 2026 are expected to average $245 (down $10 from last month); steers in the first quarter of 2027 are anticipated to average $245 (down $5.00 from last month's estimates); and steer prices in the second quarter of 2027 are expected to average $250 (down $5.00 from last month's estimate). Cattle exports for 2026 are unchanged from last month, but cattle imports for 2026 are increased by 73 million pounds with the border reopening to Mexican cattle on Aug. 24.
Boxed beef prices closed higher: choice up $0.97 ($372.28) and select up $0.01 ($349.81), with a movement of 105 loads (64.54 loads of choice, 16.79 loads of select, 6.70 loads of trim and 16.54 loads of ground beef).
THURSDAY'S CATTLE CALL: Lower. With packers able to secure valuable inventory last week, they're unlikely to be as aggressive this week.
FEEDER CATTLE:
And in its typical nature, the feeder cattle complex followed the live cattle market lower through Wednesday's end, but its losses were much more significant as most of the feeder cattle contracts closed $5.00 to $6.00 lower. August feeders closed $3.82 lower at $346.35, September feeders closed $5.90 lower at $339.35 and October feeders closed $6.30 lower at $330.42. Feeder cattle sales are difficult to report on right now as trade volumes are lower. The CME feeder cattle index 8/11/2026: up $1.15, $355.37.
LEAN HOGS:
The lean hog complex was able to rally through Wednesday's close thanks to continued trader support. October lean hogs closed $0.22 higher at $83.55, December lean hogs closed $0.57 higher at $74.70 and February lean hogs closed $0.67 higher at $77.95. And with both cash prices and cutout values ending the day weaker, it was solely trader support that carried the contracts higher through today's end. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.51 with a weighted average price of $95.81 on 2,040 head. Pork cutouts totaled 282.15 loads, with 252.66 loads of pork cuts and 29.49 loads of trim. Pork cutout values: down $1.33 to $100.15. Wednesday's slaughter is estimated at 484,000 head -- steady with a week ago and 7,000 head more than a year ago. The CME lean hog index 8/10/2026: down $0.15 to $95.94.
Wednesday's WASDE report shared a mixed outlook for the pork and hog markets for 2026. Pork production for 2026 was lowered by 79 million pounds as slaughter speeds are lower and carcass weights are lighter. Quarterly hog prices saw mostly supportive news as hogs in the third quarter are expected to average $70 (up $1.00 from last month's report); hogs in the fourth quarter of 2026 are expected to average $59 (up $1.00 from last month's estimates); hogs in the first quarter of 2027 are expected to average $62 (unchanged from last month); and hogs in the second quarter of 2027 are expected to average $68 (unchanged from last month). Pork imports increased by one million pounds, and pork exports were 62 million pounds for 2026.
THURSDAY'S HOG CALL: Lower. Given that pork cutout values continue to trade softer, likely, the cash market will too.
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