GENERAL COMMENTS:
The livestock complex is trading mixed into Monday's noon hour as the cattle contracts remain hesitant, but the lean hog contracts are rallying thanks to increased pork demand. New showlists are lower in Texas and Nebraska, but slightly higher in Kansas. Corn is down 3/4 cent per bushel and December soybean meal is steady. The Dow Jones Industrial Average is down 24.86 points and NASDAQ is up 184.04 points.
LIVE CATTLE:
At Monday's start, the live cattle complex is erring on the side of caution as traders are letting the contracts drift slightly lower, while still keeping within the market's sideways trading range. October live cattle are down $0.82 at $218.02, December live cattle are down $0.87 at $220.60 and February live cattle are down $0.97 at $222.17. Although midday boxed beef prices are higher, traders are still aware that last week demand softened, and they only received mixed support from the fed cash cattle market as Northern cattle traded steady, but thankfully, Southern live cattle were able to trade higher. More than anything, traders are entering the new week again looking for greater fundamental support to support the contracts. New showlists are lower in Texas and Nebraska, but slightly higher in Kansas.
Last week, Southern live cattle traded at mostly $226, which is $4.00 higher than the previous week's weighted average. Northern dressed cattle traded in a wide range from $345 to $350, which is mostly steady with the previous week's weighted average.
Boxed beef prices are higher: choice up $2.22 ($376.41) and select up $2.09 ($356.58) with a movement of 39 loads (30.10 loads of choice, 4.42 loads of select, zero loads of trim and 4.27 loads of ground beef).
FEEDER CATTLE:
And in typical fashion, the feeder cattle complex is also trading lower as the market wants to trade in line with the live cattle complex. And with the live cattle contracts trading lower and traders yet to know how buyer demand will be in sales this week in sale barns, traders are also letting the feeder cattle contracts scale moderately lower. October feeders are down $1.12 at $333.50, November feeders are down $1.15 at $329.92 and January feeders are down $1.92 at $322.62. Another facet adding pressure to the feeder cattle complex is also the market's 100-day moving average, which the market attempted to conquer last week, but ultimately fell back below before the weekend.
LEAN HOGS:
The cattle contracts may be trading lower, but the lean hog contracts have found some much needed support and are pushing a modest rally into Monday's noon hour. Thanks to the uptick in pork demand (as midday pork cutout values are up over $3.00 higher), traders feel as though they've been given the green light to support the contracts and help push them higher. October lean hogs are up $0.07 at $77.95, December lean hogs are up $0.62 at $70.75 and February lean hogs are up $1.15 at $72.47. The projected lean hog index for 10/2/2026 is down $0.57 at $79.63, and the actual index for 10/1/2026 is down $0.51 at $80.20. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.27 with a weighted average price of $78.52, ranging from $68.00 to $81.00 on 387 head and a five-day rolling average of $77.87. Pork cutouts total 146.53 loads with 134.08 loads of pork cuts and 12.45 loads of trim. Pork cutout values: up $3.26, $87.74.
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