DTN Midday Livestock Comments          07/06 11:49

   Mixed Tones Start Week in Cattle Complex 

   The live cattle futures may be trading higher but the feeder cattle futures 
are reluctant to believe there's really enough support in the market to move 
the contracts higher. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Monday's noon hour with the lean 
hog contracts hopeful support will remain evident throughout this week's trade; 
but the cattle contracts are mixed. New showlists appear to be about steady in 
Nebraska/Colorado, somewhat higher in Texas, and higher in Kansas. December 
corn is up 13 1/2 cents per bushel and December soybean meal is up $7.70. The 
Dow Jones Industrial Average is down 29.90 points and NASDAQ is up 334.89 
points.

LIVE CATTLE:

   Following the recent five-day decline in the live cattle complex, Monday's 
market has been met with some minor support from traders as the contracts are 
trading mildly higher into the noon hour. August live cattle are up $0.15 at 
$239.35, October live cattle are up $0.57 at $234.87 and December live cattle 
are up $0.40 at $234.62. New showlists appear to be about steady in 
Nebraska/Colorado, somewhat higher in Texas, and higher in Kansas. 
Unfortunately, unless something develops positively from the market's 
fundamentals -- which may be a tough measure to bet on this week as boxed beef 
prices are trading lower and the trend seems to be lower in the cash market too 
-- it's unlikely the board will find much upward momentum.

   Last week Northern dressed cattle traded at mostly $403, which is $5.00 
lower than the previous week's weighted average, and Southern live cattle 
traded at $255, which is $3.00 lower than the previous week's weighted average.

   Boxed beef prices are lower: choice down $1.17 ($385.90) and select down 
$2.47 ($364.96) with a movement of 60 loads (31.55 loads of choice, 6.12 loads 
of select, 8.29 loads of trim and 14.24 loads of ground beef).

FEEDER CATTLE:

   Sure, the live cattle contracts may be trading mildly higher, but the feeder 
cattle contracts haven't been as quick to jump and turn higher at the week's 
start given that boxed beef prices are lower and demand softened slightly last 
week for feeder cattle. August feeders are down $0.22 at $360.40, September 
feeders are down $0.87 at $357.77 and October feeders are down $0.85 at 
$354.72. With the market now trading at its 100-day and 40-day moving averages, 
it's likely traders will be skeptical of being overly bullish give the 
technical risk that looms.

LEAN HOGS:

   The lean hog complex is trading mostly higher as the market is hoping to 
keep with the upward trend that was seen last week. With the early support of 
consumer demand, there's a chance traders may be able to push the market mildly 
higher as the next resistance level doesn't appear until around the $100 mark 
in the spot August contract. August lean hogs are down $0.27 at $98.47, October 
lean hogs are up $0.47 at $82.50 and December lean hogs are up $0.42 at $73.80.

   The projected CME Lean Hog Index for 7/2/2026 is down $0.12 at $91.55, and 
the actual index for 7/1/2026 is up $0.18 at $91.67. Hog prices are unavailable 
on the Daily Direct Morning Hog Report because of confidentiality. However, we 
can see only 2,163 head have traded and the market's five-day rolling average 
now sits at $96.98. Pork cutouts total 200.76 loads with 186.43 loads of pork 
cuts and 14.34 loads of trim. Pork cutout values: up $0.33, $96.39.

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




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