Livestock Markets Hit Eight-Month Low Amid Cheaper Imports
The livestock market started the week on a down note, with cattle futures prices plummeting to an eight-month low. The October live cattle contract fell $4.325 to $213.60, while November feeder cattle lost $5.275 to $310.975. The decline in cattle futures was driven by technical selling pressure and the Trump administration's push to lower beef prices through cheaper imports.
The lean hog market also saw some weakness, with October lean hog futures rising only $0.25 to $81.125. However, the cash hog market is still trending down, which could limit buying interest in hog futures. The USDA reported that last week's cash cattle trading activity averaged $225.01, down from the previous week's average of $228.52.
The livestock heat stress in the southern Plains states will continue to be a challenge for weight gains this week. As a result, producers should be prepared to make additional purchases if value prices continue. Hedgers are advised to carry all production risk in the cash market for now and have corn-for-feed and soymeal needs covered through September.