DTN Midday Livestock Comments          10/09 11:45

   Cattle Rally Aggressively Late in the Week

   Bids are on the table in Nebraska and Kansas, but no new trade has developed 
yet. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   With ample trader support, the cattle contracts are off like a rocket ship 
heading into Friday afternoon. Bids are on the table in the cash cattle market, 
but no new trade has developed just yet. December corn is down 27 1/2 cents per 
bushel and December soybean meal is down $3.60. The Dow Jones Industrial 
Average is up 362.03 points and the NASDAQ is up 152.26 points.

LIVE CATTLE:

   The wait may have been worth it, as to everyone's surprise the live cattle 
complex is trading robustly higher into midday Friday.Not only is the market 
pushing a substantial $2.00 rally in most of its nearby contracts into the 
afternoon, but the rally has pushed the spot December contract out of its 
sideways trading range, which is a bold move.October live cattle are up $2.35 
at $224.22, December live cattle are up $2.80 at $226.35 and February live 
cattle are up $2.67 at $228.52. Following Thursday's light trade in the North 
at $345 (which is steady to $3.00 lower than last week's weighted average), no 
new trade has developed yet in the fed cash cattle market, but packer interest 
should improve at any moment. Bids are currently on the table at $220 in 
Kansas, and at $218 live and $345 dressed in Nebraska. 

   Friday's WASDE report shared mixed news for the cattle and beef markets of 
2026.Beef production for 2026 was decreased by 75 million pounds as slaughter 
speeds continue to be light compared to years past. Quarter steer prices were 
unchanged from last month's report, with steers in the fourth quarter of 2026 
expected to average $235, steers in the first quarter of 2027 are expected to 
average $235, steers in the second quarter of 2027 are expected to average $235 
and steers in the third quarter of 2027 are expected to average $240. Beef 
imports for 2026 were increased by 85 million pounds as Australia continues to 
send more supply, and exports were unchanged. 

   Boxed beef prices are mixed: choice down $0.15 ($374.70) and select up $4.29 
($356.02) with a movement of 91 loads (57.93 loads of choice, 5.23 loads of 
select, 11.66 loads of trim and 15.94 loads of ground beef).

FEEDER CATTLE:

   And if you think the $1.00 to $2.00 rally is exciting in the live cattle 
complex, take a look at the feeder cattle market, which is currently rallying 
$5.00 to $7.00 higher. But upon seeing the momentum in the live cattle complex, 
and upon seeing ample trader support, the market couldn't help but trade 
higher. October feeders are up $5.20 at $343.22, November feeders are up $6.42 
at $341.35 and January feeders are up $7.20 at $335.72. 

LEAN HOGS:

   And although pork cutout values may be up slightly, it's simply too little 
support too late in the week to do anything meaningful at this point. October 
lean hogs are down $0.67 at $75.15, December lean hogs are down $0.77 at $67.82 
and February lean hogs are down $0.67 at $69.20. The projected lean hog index 
for 10/8/2026 is down $0.80 at $77.61 and the actual index for 10/7/2026 is 
down $0.50 at $78.41. Hog prices are higher on the Daily Direct Morning Hog 
Report, up $1.92 with a weighted average price of $74.46, ranging from $64.00 
to $80.00 on 834 head and a five-day rolling average of $75.01. Pork cutouts 
total 201.55 loads, with 184.95 loads of pork cuts and 16.60 loads of trim. 
Pork cutout values: up $0.54, $80.18. 

   Friday's WASDE report shared a mixed view for the hog and pork markets of 
2026. Pork production for 2026 was decreased by 150  million pounds as 
slaughter speeds and carcass weights are lighter than anticipated. Hog prices 
for 2026 were decreased as pork demand continues to remain under pressure. Hog 
prices in the fourth quarter of 2026 are now anticipated to average $55 (down 
$3.00), hog prices in the first quarter of 2027 are anticipated to average $60 
(down $1.00), hog prices in the second quarter of 2027 are expected to average 
$65 (down $2.00) and hog prices in the third quarter of 2027 are expected to 
average $68.00. Pork imports for 2026 were increased by five million pounds, 
while hog exports were decreased by 60 million pounds.

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




(c) Copyright 2026 DTN, LLC. All rights reserved.