DTN Midday Livestock Comments          07/07 11:39

   Lower Tones Stick With the Livestock Contracts

   All three of the livestock contracts are trading lower into midday Tuesday.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   It's another day of lower prices for the livestock complex as the market 
needs to see greater fundamental support before it will likely trade higher 
again. Still no trade has surfaced in the cash cattle market. December corn is 
up 2 cents per bushel and December soybean meal is up $1.10. The Dow Jones 
Industrial Average is down 161.53 points and the NASDAQ is down 180.17 points.

LIVE CATTLE:

   Although midday boxed beef prices are higher, the live cattle contracts are 
still trading lower as traders need more than a little fundamental support to 
help turn this market around. But with the cash cattle market anticipated to 
trade steady at best, a steady to somewhat lower trend will likely continue to 
be the theme of this week's trade for the live cattle contracts. August live 
cattle are down $1.15 at $237.95, October live cattle are down $1.07 at $233.57 
and December live cattle are down $0.90 at $233.57. No action has developed yet 
in the cash cattle market.

   Boxed beef prices are higher: choice up $1.30 ($387.78) and select up $4.49 
($370.36) with a movement of 69 loads (41.11 loads of choice, 13.21 loads of 
select, 10.16 loads of trim and 4.65 loads of ground beef).

FEEDER CATTLE:

   And although feeder cattle demand was strong Monday afternoon in the 
countryside, traders simply aren't willing to push the feeder cattle contracts 
higher while the live cattle contracts are scaling lower. August feeders are up 
$0.27 at $360.77, September feeders are down $0.45 at $357.42 and October 
feeders are down $1.17 at $353.62. Regardless of what happens in the 
countryside this afternoon, it's likely that the contracts will continue to 
follow the direction of the live cattle market.

LEAN HOGS:

   The lean hog contracts are also trading lower this morning as the market is 
fearing the resistance at the market's $100 market in the spot August contract. 
And while it would be easy and logical to point to the slight uptick in pork 
demand, traders need more reassurance than that if they're going to challenge a 
threshold that the market hasn't successfully traded over in over a month. July 
lean hogs are down $0.22 at $93.12, August lean hogs are down $1.92 at $96.60 
and October lean hogs are down $1.15 at $81.42.

   The projected lean hog index for 7/6/2026 is up $0.11 at $91.66 and the 
actual index for 7/2/2026 is down $0.12 at $91.55. Hog prices are unavailable 
on the Daily Direct Morning Hog Report because of confidentiality. However, we 
can see that 1,477 head have traded and that the market's five-day rolling 
average now sits at $96.96. Pork cutouts total 205.05 loads with 182.39 loads 
of pork cuts and 22.66 loads of trim. Pork cutout values: up $1.74, $97.99.

   ShayLe Stewart can be reached shayle.stewart@dtn.com




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