GENERAL COMMENTS:
Traders remain hopeful that fundamental support will increase later this week which is why they were comfortable letting the cattle contracts close slightly higher. New showlists for the week are steady in Texas, but slightly higher in Kansas and Nebraska. December corn is down 7 1/4 cents per bushel and December soybean meal is down $2.30. The Dow Jones Industrial Average is down 36.38 points and the NASDAQ is up 290.86 points.
LIVE CATTLE:
With the hopeful anticipation that fed cash cattle prices will trade at least steady if not a tick higher later this week when trade develops -- traders showed good support and good faith toward the live cattle complex and kept most of the contracts higher through Monday's close. October live cattle closed $0.05 lower at $227.50, December live cattle closed $0.32 lower at $228.02 and February live cattle closed $0.05 higher at $230.92. No cash cattle trade developed throughout the day and trade will likely be delayed until Friday. New showlists for the week are steady in Texas, but slightly higher in Kansas and Nebraska. Monday's slaughter is estimated at 105,000 head -- 1,000 head less than a week ago and 15,000 head more than a year ago.
Last week Northern dressed cattle traded at mostly $355 which is $10 higher than the previous week's weighted average, and Southern live cattle traded at mostly $224 which is $4 higher than the previous week's weighted average. The week's total negotiated cash cattle trade totaled 90,762 head. Of that 90% (81,611 head) were committed to the market's nearby delivery option, while the remaining 10% (9,151 head) was committed to the market's deferred delivery option.
Boxed beef prices closed mixed: choice down $0.73 ($371.58) and select up $6.86 ($359.91) with a movement of 104 loads (49.89 loads of choice, 8.63 loads of select, 6.84 loads of trim and 39.08 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat higher. Given the fact that feedlot managers sit relatively current with their showlists and that beef demand remains strong, there's a chance that prices could hold steady again this week if not trade a tick higher.
FEEDER CATTLE:
And upon seeing the live cattle contracts keep with their higher trend throughout the day, the feeder cattle complex couldn't bear the idea of not following suit and seeing its contracts trade higher as well. October feeders closed $0.80 higher at $344.42, November feeders closed $2.02 higher at $343.92 and January feeders closed $1.65 higher at $339.92. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week and at their midsession point feeder steers over 800 pounds were traded $4 to $6 higher and steers under 800 pounds were traded steady to $4 lower. Feeder heifers were selling steady to $3 higher, but heifers weighing 600 to 700 pounds were traded $6 to $7 lower. Steer calves were selling $10 to $15 higher but those under 500 pounds weren't well tested. Heifers calves under 500 pounds were trading steady to $5 higher. Feeder cattle supply over 600 pounds was 53%. The CME feeder cattle index Oct. 16, 2026: down $0.09, $343.45.
LEAN HOGS:
And lo and behold, pork cutout values softened Monday and the contracts did too. December lean hogs closed $0.57 lower at $66.35, February lean hogs closed $0.57 lower at $68.65 and April lean hogs closed $0.82 lower at $73.85. If pork demand doesn't improve, a sideways chop is likely going to remain the trend. Hog prices closed higher on the Daily Direct Afternoon Hog report, up $2.51 with a weighted average price of $69.60 on 1,458 head. Pork cutouts totaled 241.71 loads with 224.59 loads of pork cuts and 17.12 loads of trim. Pork cutout values: down $1.16, $79.39. Monday's slaughter is estimated at 495,000 head -- 10,000 head more than a week ago and 8,000 head more than a year ago. The CME lean hog index Oct. 15, 2026: down $0.90, $74.19.
TUESDAY'S HOG CALL: Higher. Monday's cash trade being light, packers will likely need to be more aggressive on Tuesday.
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