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DTN Midday Livestock Comments 07/27 11:48
Traders Are Keeping Their Distance From Livestock Contracts at Week's Open
The livestock complex is trading lower into Monday's noon hour as traders
are keeping an arms distance from the market right now.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading lower into Monday's noon hour as the cattle
contracts slowly absorb all the developments that surfaced last Friday and the
lean hog complex is being cautious as well. Showlists for the week are steady
to somewhat higher, greater in Texas and Kansas, but steady in Nebraska.
December corn is down 13 1/2 cents per bushel and December soybean meal is down
$11.70. The Dow Jones Industrial Average is up 222.93 points and NASDAQ is down
63.95 points.
LIVE CATTLE:
Last Friday hit like a Mack truck. From having to absorb the monthly Cattle
on Feed report, to seeing the bi-annual Cattle inventory report released, to
late in the day being surprised to see an announcement come from U.S. Ag
Secretary Brooke Rollins that the U.S. will begin to slowly reopen the border
to Mexican cattle imports on Aug. 24th -- it was a whirlwind of a day. And
given that today (Monday) is the first time traders have had the chance to
react to any of those reports/announcements, it comes as no real surprise the
market is trading lower. August live cattle are down $1.87 at $225.20, October
live cattle are down $3.45 at $219.05 and December live cattle are down $4.42
at $217.85. Showlists for the week are steady to somewhat higher, greater in
Texas and Kansas, but steady in Nebraska.
Last week Southern live cattle traded at $230 which is $7.00 to $8.00 lower
than the previous week's weighted average and Northern dressed cattle traded at
mostly $365 which is $12.00 to $15.00 lower than the previous week's weighted
average.
Boxed beef prices are mixed: choice up $1.72 ($362.96) and select down $0.25
($346.46) with a movement of 50 loads (29.15 loads of choice, 6.89 loads of
select, 4.88 loads of trim and 9.23 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is taking last Friday's developments the hardest
as its contracts are trading anywhere from $6.00 to $10.00 lower. August
feeders are down $4.85 at $340.47, September feeders are down $6.42 at $335.07
and October feeders are down $9.05 at $326.95. With little support from the
live cattle/fed cash cattle market, the additional pressure of not knowing the
details of the border's reopen will likely weigh heavily on the feeder cattle
market for awhile.
LEAN HOGS:
Although midday pork cutout values are higher, the lean hog complex is
starting the week off in a cautious manner as well. August lean hogs are up
$0.02 at $102.87, October lean hogs are down $1.42 at $87.60 and December lean
hogs are down $1.90 at $78.42. More than anything a heavy weight has seemed to
be cast across the livestock complex Monday morning, and if fundamental support
prevails, traders will likely be able to shake the doggish energy later this
week.
The projected CME Lean Hog Index for 7/24/2026 is up $0.32 at $98.23 and the
actual index for 7/23/2026 is up $0.43 at $97.91. Hog prices are unavailable on
the Daily Direct Morning Hog Report because of confidentiality. However, we can
see that only 270 head have traded and the market's five-day rolling average
now sits at $100.60. Pork cutouts total 138.40 loads with 123.20 loads of pork
cuts and 15.20 loads of trim. Pork cutout values: up $2.29, $106.92.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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