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DTN Midday Livestock Comments 09/03 11:42
Cattle Jump Higher
Cattle charge higher into Thursday's noon hour, which may help keep fed cash
cattle prices steady this week.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
It's another mixed day for the livestock complex as the cattle contracts are
trading higher, but the lean hog contracts are back to trading lower. A single
bid of $219 is being offered in Kansas, but no new trade has developed
following Wednesday's light business. December corn is down 2 1/2 cents per
bushel and December soybean meal is up $5.80. The Dow Jones Industrial Average
is up 599.87 points and the NASDAQ is up 330.31 points.
Thursday's export report shared that beef net sales of 12,900 mt for 2026
were up 41% from the previous week, but down 2% from the prior 4-week average.
The three largest buyers were South Korea (4,700 mt), Hong Kong (1,700 mt) and
Japan (1,600 mt). Pork net sales of 35,000 mt for 2026 were down 10% from the
previous week but up 8% from the prior 4-week average. The three largest buyers
were Mexico (17,800 mt), China (5,900 mt) and Japan (2,700 mt).
LIVE CATTLE:
The live cattle contracts are pushing a bullish rally into Thursday's noon
hour as the market is currently trading anywhere from $3.00 to $4.00 higher.
It's tough to pinpoint where the market's explosive burst of support is
stemming from as boxed beef prices are lower this morning, but it is
encouraging that of the light cash cattle trade that we've seen in the North,
prices were at least steady with last week's weighted average. October live
cattle are up $4.37 at $214.52, December live cattle are up $4.52 at $216.55
and February live cattle are up $4.35 at $218.35. The cash cattle market
remains quiet at Thursday's noon hour, with a bid of $219 currently on the
table in Kansas, but otherwise no developments have surfaced. There was some
light trade noted on Wednesday at $345 in the North, which is steady with last
week's weighted average, but no other trade has been noted. The futures market
is trading notably higher, which could potentially help feedlot managers hold
this week's trade steady.
Boxed beef prices are lower: choice down $1.48 ($377.30) and select down
$2.58 ($351.00) with a movement of 72 loads (54.35 loads of choice, 6.38 loads
of select, zero loads of trim and 11.42 loads of ground beef).
FEEDER CATTLE:
Upon seeing the live cattle contracts trading notably higher, the feeder
cattle contracts have elected to charge onward as well, as they're currently
trading anywhere from $5.00 to $7.00 higher. Hopefully today's higher push will
help feeder cattle sales in the countryside. September feeders are up $6.60 at
$325.57, October feeders are up $7.10 at $321.55 and November feeders are up
$7.85 at $316.20.
LEAN HOGS :
Unfortunately the bullish push that's helping drive the cattle contracts
higher hasn't trickled over into the lean hog complex as its market is now
trading lower. More than anything it's likely that the market's resistance is
holding the lean hog complex from trading any higher as traders desire to see
greater fundamental support before tackling that big of a technical barrier.
October lean hogs are down $0.50 at $83.27, December lean hogs are down $0.52
at $73.80 and February lean hogs are down $0.42 at $76.45. The projected lean
hog index for 9/2/2026 is up $0.23 at $91.08 and the actual index for 9/1/2026
is up $0.27 at $90.85. Hog prices closed $3.30 lower at $87.09, ranging from
$85.00 to $89.00 on 844 head and a five-day rolling average of $89.44. Pork
cutouts total 113.05 loads with 105.63 loads of pork cuts and 7.42 loads of
trim. Pork cutout values: down $2.77, $92.85.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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