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DTN Midday Livestock Comments 08/20 11:47
Traders Let Livestock Contracts Chop Sideways Thursday
Cash cattle bids of $355 to $356 dressed and $225 live are on the table in
Nebraska and bids of $225 live are currently being offered in Kansas.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex continues to chop sideways as traders are desperate
for greater fundamental support but aren't seeing it surface in the market
consistently. Some bids are on the table currently in the cash market and
packer interest will likely improve as the day trades on. December corn is up 5
3/4 cents per bushel and December soybean meal is up $0.40. The Dow Jones
Industrial Average is down 420.28 points and NASDAQ is down 194.36 points.
Thursday's export report shared that beef net sales of 9,300 mt for 2026
were down 36% from the previous week and 37% from the prior 4-week average. The
three largest buyers were Mexico (1,600 mt), South Korea (1,400 mt) and Taiwan
(1,400 mt). Pork net sales of 27,300 mt for 2026 were down 25% from the
previous week and 15% from the prior 4-week average. The three largest buyers
were Mexico (10,700 mt), South Korea (3,500 mt) and Japan (2,900 mt).
LIVE CATTLE:
Despite fed cash cattle prices that are thus far trading lower this week and
midday boxed beef prices that are lower too, traders are mildly supporting the
live cattle contracts into Thursday's noon hour. More than anything this seems
to be a sideways chop following Wednesday's weaker close. August live cattle
are up $0.97 at $224.40, October live cattle are up $1.60 at $218.82 and
December live cattle are up $2.07 at $219.22. Bids are starting to surface
again in the fed cash cattle market as currently packers are offering $355 to
$356 dressed and $225 live in Nebraska, and $225 live in Kansas. Some moderate
trade developed Wednesday at $355 to $356 in Iowa and Nebraska but otherwise
the cash market has yet to trade any cattle in the South.
Boxed beef prices are lower: choice down $2.85 ($392.14) and select down
$0.61 ($363.56) with a movement of 51 loads (35.93 loads of choice, 11.05 loads
of select, zero loads of trim and 3.69 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is also higher as traders continue to work both
the live cattle and feeder cattle contracts in the same direction. August
feeders are up $0.25 at $337.10, September feeders are up $0.80 at $329.92 and
October feeders are up $1.55 at $323.60. Even with the board's slight
improvement, it's unlikely buyers will be much more aggressive in the
countryside as there are a lot of unweaned calves working their way into the
market and they come with high risk.
LEAN HOGS:
The sideways chop is continuing in the lean hog complex as traders frankly
aren't confident with what to do with this market. Fundamental support is too
wishy washy to count on, so at this point the back and forth of higher one day
and lower the next is likely to continue in the hog sector. October lean hogs
are down $1.12 at $80.37, December lean hogs are down $0.50 at $70.92 and
February lean hogs are down $0.17 at $74.07. The projected CME Lean Hog Index
for 8/19/2026 is down $0.24 at $93.72 and the actual index for 8/18/2026 is
down $0.82 at $93.96. Hog prices are higher on the Daily Direct Morning Hog
Report, up $0.51 with a weighted average price of $92.75, ranging from $91.00
to $96.50 on 1,036 head and a five-day rolling average of $92.90. Pork cutouts
total 137.22 loads with 123.97 loads of pork cuts and 13.24 loads of trim. Pork
cutout values: up $0.38, $97.96.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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