DTN Early Word Livestock Comments

Cattle: Higher Futures: Steady Live Equiv: $275.28 -$0.30*

Hogs: Lower Futures: Lower Lean Equiv: $87.60 -$2.29**

*Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The index has been updated to depict recent changes in live cattle weights and grading percentages.)

** based on formula estimating lean hog equivalent of gross packer revenue.

GENERAL COMMENTS:

Cattle markets were quiet Tuesday, waiting to see what cash trade does for the week. Currently, slaughter is running about 4,000 head above last week at this time at 216,000. Nebraska cash is trading $218-$223 live while Iowa and Minnesota are slightly lower at $218-$221. Cattle are available and ready to move in the North; however, getting bids has been a struggle for producers. Cutout values fell slightly for beef with choice down $0.41 at $375.15 and select was down $0.46 at $353.67.

Hog futures traded lower Tuesday, facing an uphill battle when all fundamental news points toward lower prices. Even though the Commitment of Traders report indicated that funds bought back some of their large short positions, the fact is that the big money is still betting at near-record levels against hog prices moving higher. Pork cutouts fell again Tuesday, down $2.29.

	BULL SIDE		BEAR SIDE
1)	Packer margins are estimated at +156.36/hd, the eighth week in a row of positive margins.	1)	Packers in the North are holding out on purchasing cattle while there is plenty of inventory ready to move as we approach the end of the October contract.
2)	Technicals for both live cattle and feeder cattle are strong as the market isn't shying away from hanging out near recent highs.	2)	Beef is projected to have higher carryout in 2027.
3)	Managed money has begun lifting some of their record net-short positions in the hog market, reducing pressure on futures market.	3)	Middle to lower income consumers are moving away from pork and increasing chicken consumption.
4)	Market hog numbers are down 2% while breeding numbers are down 1% year-over-year.	4)	Pork is projected to have higher carryout in both 2026 and 2027.

For our next livestock update, please visit our Midday Livestock comments between 11 a.m. and noon CDT. Also, stay tuned to our Quick Takes throughout the day for periodic updates on the futures markets.

Robin Schmahl can be reached at rschmahl@agdairy.com

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