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DTN Midday Livestock Comments 07/28 11:42
Livestock Contracts Rally Following Monday's Weaker Close
Bids are offered in both Kansas and Nebraska but no new sales have been
posted following Monday's light business.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
Although fear and worry struck the livestock complex Monday, that no longer
seems to be the case as the contracts are all rallying into Tuesday's noon
hour. Bids are on the table in Nebraska and Kansas, but no new trade has
developed. December corn is up 7 3/4 cents per bushel and December soybean meal
is up $3.00. The Dow Jones Industrial Average is up 641.84 points and NASDAQ is
down 39.50 points.
LIVE CATTLE:
Following Monday's weaker close, traders seem to have shaken the worry and
concern over the border reopening to Mexican cattle imports on Aug. 24 and are
back to rallying. August live cattle are up $2.00 at $227.22, October live
cattle are up $2.82 at $221.60 and December live cattle are up $3.55 at
$220.95. Bids are on the table in Kansas at $228 live and in Nebraska at $228
live and $360 dressed. Following Monday's light trade, no more sales have been
confirmed and asking prices remain elusive. But with the back-and-forth nature
of the board this week it is anyone's guess when trade will fully get underway
and what the week's weighted average trend will be.
Boxed beef prices are higher: choice up $2.91 ($365.80) and select up $0.76
($345.92) with a movement of 61 loads (37.92 loads of choice, 7.54 loads of
select, 7.15 loads of trim and 7.98 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are also rallying into Tuesday's noon hour,
again following the lead of the live cattle futures. I would like to mention,
however, that the market is seeing the biggest daily gains in its nearby
contracts (up $3.00 to $6.00 higher) while the deferred contracts are rallying
closer to $1.00. This is likely due to the fact that when increased supplies do
come from Mexico, it will impact the later months. August feeder cattle are up
$5.57 at $343.82, September feeder cattle are up $6.27 at $338.20 and October
feeders are up $3.80 at $329.05.
LEAN HOGS:
With the help of strong consumer demand, the lean hog contracts are rallying
into Tuesday's noon hour. The uptick of recent consumer demand has been the
driving force allowing the lean hog contracts to trade higher in recent weeks.
As long as that support remains steady, the contracts will likely continue to
move higher. August lean hogs are down $0.15 at $102.82, October lean hogs are
up $0.12 at $87.92 and December lean hogs are up $0.52 at $79.07. The projected
CME Lean Hog Index for 7/27/2026 is up $0.12 at $98.35, and the actual index
for 7/24/2026 is up $0.32 at $98.23. Hog prices on the Daily Direct Morning Hog
Report average $101.32, ranging from $97.00 to $102.00 on 6,149 head and a
five-day rolling average of $100.99. Pork cutouts total 112.82 loads with
105.15 loads of pork cuts and 7.66 loads of trim. Pork cutout values: up $1.30,
$105.75.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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