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DTN Midday Livestock Comments 08/26 11:44
Lack of Fundamental Support Keeps Livestock Contracts Jittery
Bids are on the table in Nebraska and Kansas, but no new trade has developed
in the fed cash cattle market.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is again trading mixed into Wednesday's noon hour as
the cattle futures lack support but the lean hog contracts are chopping
sideways thanks to trader support. Bids are on the table in Nebraska and Kansas
-- but no new trade has developed in the fed cash cattle market. December corn
is up 12 1/4 cents per bushel and December soybean meal is up $7.40. The Dow
Jones Industrial Average is down 145.92 points and NASDAQ is down 95.22 points.
LIVE CATTLE:
The live cattle complex is mostly trading lower into Wednesday's noon hour
as traders are aware it's unlikely fundamental support is going to arise later
this week. With packers now possessing the lion's share of the market's
leverage, fed cash cattle prices will likely continue to scale lower for the
unforeseeable future; uncertainty surrounding the border reopening causes
market anxiousness as well. October live cattle are down $0.75 at $210.20,
December live cattle are down $0.22 at $211.95 and February live cattle are
down $0.10 at $213.40. Following the movement that transpired in the North on
Tuesday at mostly $345 (which is $10.00 lower than the previous week's weighted
average), no new trade has developed but bids are on the table. Bids are
currently being offered in Kansas at $218 live, and in Nebraska at $218 live
and $345 dressed. More trade will need to develop in the South before the week
is over, and some more light trade could develop in the North as well.
Boxed beef prices are lower: choice down $1.05 ($387.48) and select down
$2.69 ($366.29) with a movement of 63 loads (31.90 loads of choice, 11.86 loads
of select, 2.97 loads of trim and 15.84 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are also trading lower into Wednesday's noon
hour as the market isn't finding the support and reassurance it needs. Thus far
this week feeder cattle prices have been mostly lower in sale barns across the
country and the light test we've seen in the fed cash cattle market has been
lower too -- both of which pressure the market to trade lower. September
feeders are down $2.80 lower at $316.47, October feeders are down $1.45 at
$311.87 and November feeders are down $0.77 at $304.92.
LEAN HOGS:
The lean hog contracts are trading slightly higher into Wednesday's noon
hour as traders are merely letting the contracts chop sideways. More than
anything, a sideways chop should be expected of the contracts as fundamental
support isn't stable enough to justify trading the contracts notably higher.
October lean hogs are up $0.10 at $80.55, December lean hogs are up $0.45 at
$70.80 and February lean hogs are up $0.27 at $73.45. The projected CME Lean
Hog Index for 8/25/2026 is down $0.23 at $92.42, and the actual index for
8/24/2026 is down $0.21 at $92.65. Hog prices are higher on the Daily Direct
Morning Hog Report, up $0.27 with a weighted average price of $90.88, ranging
from $83.00 to $91.50 on 8,483 head and a five-day rolling average of $91.64.
Pork cutouts total 157.90 loads with 139.35 loads of pork cuts and 18.55 loads
of trim. Pork cutout values: down $0.75, $96.92.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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