DTN Midday Livestock Comments          07/23 12:23

   Traders Push the Cattle Contracts to New Highs

   Asking prices are noted in the South at $322 but are still not established 
in the North.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   Throughout Wednesday's trade, the cattle contracts have traded boldly as new 
contract highs are seeming to be the norm for the day. No cash cattle trade has 
developed yet, but asking prices are now noted in the South at $322. September 
corn is down 1 cent per bushel and August soybean meal is up $0.10. The Dow 
Jones Industrial Average is up 356.01 points and NASDAQ is up 32.95 points.

LIVE CATTLE:

   It's another rip-roaring, rallying day for the live cattle complex as the 
contracts are etching into new territory yet again today. August live cattle 
are up $1.37 at $226.35, October live cattle are up $1.62 at $222.75 and 
December live cattle are up $1.55 at $223.20. It could potentially be that 
traders are excited to hear about the trade deal that President Trump worked 
out with Japan, as it will obviously open up more opportunities for more beef 
to be marketed. Still today, no cash cattle trade has developed, but asking 
prices are now noted in the South at $232 but remain unestablished still in the 
North.

   Boxed beef prices are mixed: choice down $3.07 ($369.43) and select up $0.11 
($348.05) with a movement of 98 loads (74.10 loads of choice, 13.30 loads of 
select, zero loads of trim and 10.83 loads of ground beef).

FEEDER CATTLE:

   Up, up and away runs the feeder cattle complex as the market is seeing its 
contracts trade anywhere from $1.00 to $3.00 higher into Wednesday's noon hour. 
Again, today it's interesting to note that the biggest day over day advancement 
is currently being seen on the deferred contracts, which are the months trading 
up to $3.60 higher. More than anything, it seems as though traders are not only 
recognizing the fact that supplies are going to remain tight, but that they're 
also adjusting their position from a technical standpoint because of it. August 
feeders are up $1.87 at $330.17, September feeders are up $1.77 at $330.35 and 
October feeders are up $2.20 at $329.07.

LEAN HOGS:

   The cattle contracts may be rallying but the lean hog complex is again 
trading lower as traders remain stalemate in their hopes to advance the 
complex. This morning, pork demand is higher so traders can't point to 
disappointing market fundamentals. It seems as though traders are running into 
some resistance pressure, which is hindering the contracts from trading any 
higher. August lean hogs are down $0.30 at $107.45, October lean hogs are down 
$0.62 at $89.87 and December lean hogs are down $0.92 at $81.92.

   The projected lean hog index for 7/22/2025 is up $0.64 at $109.23, and the 
actual index for 7/21/2025 is up $0.39 at $108.59. Hog prices are higher on the 
Daily Direct Morning Hog Report, up $0.78 with a weighted average price of 
$114.77, ranging from $104.50 to $118.50 on 6,746 head and a five-day rolling 
average of $112.94. Pork cutouts total 159.15 loads with 145.21 loads of pork 
cuts and 13.93 loads of trim. Pork cutout values: up $0.01, $118.16.

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




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