10/7/2025 Market Commentary

Live Cattle: Live Cattle futures have gained $3.250/cwt the first two days of this week following last week’s disappointing cash trade. The deferred contracts pushed back above the 20-day MA to finish last week and gave the Live Cattle complex a technical boost to begin the week. Cash this week has been quiet up to this point with no bids or offers in the country. With the improved futures prices, the feedlots will be asking more money and hoping for at least steady with the October futures. The delivery period for the October contract began on Monday and there were no deliveries posted last night against the contract. With the cash averages last week near 230 in the North, this is definitely something to keep an eye on now that the futures have worked to an over $3 premium to that cash level. With the lower cash market and the basis flipping to negative, many feedlots will keep cattle on feed longer, increasing carcass weights and weekly beef production. Carcass weights are not being released due to the government shutdown, but the latest data that was released showed steer and heifer weights 16 pounds larger than a year ago and 36 pounds heavier than the 3-year average. This morning, boxed beef was higher with choice being quoted at $364.53, up $1.19 on the day and select was $0.94 higher at $348.91. Seasonally, boxed beef stabilizes in this time period and works sideways to higher through the holiday season.

Feeder Cattle: The Feeder Cattle futures have been the leader of the cattle complex to start the week and have now gained more than $11.000/cwt over the last three trading sessions. The April and further deferred contracts posted new contract highs today. Ag Secretary Brooke Rollins posted on X that there was another case of New World Screwworm detected in Mexico. This case was 170 miles from the U.S. border which continues to feed the idea that the U.S. and Mexico are far from a timeline to reopen the border. While the Feeder Cattle futures rocketed higher in the final hour of trade yesterday before the announcement was made, the news must have been out to some of the traders. The CME Feeder Cattle index has recovered slightly over the past few days after falling nearly $6 in three days last week. Through Monday’s sales, the index is quoted at $364.24 and just $3.37 below the record high of $367.61.

Lean Hogs: Lean Hog futures started the week with small losses in the nearby contracts and small gains in the deferred months on Monday. Today, all contract months closed lower with December losing 1.100 and February suffering the biggest loss of 1.275. The Lean Hog index is down $1.68 since last Friday currently at $102.02, but still at a $4.17 premium to the October futures which expire next Tuesday. With the government shutdown still in place we will not see the pork export data or the Commitment of Traders Report until the government resumes session. With the absence of these reports, the futures will rely heavily on what the pork cutout prices and cash hog prices trade at. The pork cutout is currently at $107.35, and cash hogs continue to trade under the $100 level. With new crop corn in the feed supply and favorable growing conditions, look for hog weights to start increasing rapidly, creating more hogs being available to the cash market.

Corn: Corn futures continue to be stuck in a sideways range just below the 20-day MA. The WASDE report that is scheduled for this Thursday is currently in jeopardy as the government shutdown will prevent this report from being released. Export inspections were released yesterday and showed another good week of Corn shipments. Total shipments were 63.0 million bushels for the week ending October 2. This was near the top end of the range of guesses and nearly 8.0 million bushels ahead of the 10-week average. The USDA crop progress data is also on hold with the current government shutdown, but private analyst Reuters has corn harvest at 29% complete nationally, which is a gain of 18% during the week. The Corn market continue to search for news and without the normal USDA reports, there is less news than normal. With harvest continuing to progress and the charts bumping their head on technical resistance, the Corn market has turned to a choppy sideways trade until there is news or a fundamental change to the market.

Closing Prices

Market Month Last Change
Corn Dec 419.75 2.00
CHI Wheat Dec 506.75 6.00
KC Wheat Dec 492.00 3.50
Soybeans Nov 1022.00 4.25
Soy Oil Dec 51.04 0.66
Soy Meal Dec 276.90 0.20
Live Cattle Oct 233.100 1.225
Feeder Cattle Oct 365.500 3.400
Lean Hogs Oct 97.850 0.475
Crude Oil Nov 61.78 0.09
Ch Cutout 364.53 1.19
Sel Cutout 348.91 0.94
Feeder Index 364.24 0.77
Pork Cutout 107.35 0.95
Dollar Index 98.529 0.4200
DOW 46,536 158
National Corn Basis -42.20 1.10
National Bean Basis -79.75 0.02

Dates to Remember

October 9- WASDE Report (pending)

October 14- October Lean Hog Expiration

Hog Fundamentals

Current One Week Ago Change One Year Ago Change
Lead Month Future 97.850 99.850 2.000 83.975 13.875
National Cash 99.39 102.44 3.05 76.68 22.71
Index 102.02 104.78 2.76 84.22 17.80
Cutout 107.35 112.22 4.87 96.05 11.30
IA/SMN Cash 99.35 102.06 2.71 76.65 22.70
IA/SMN Weights 287.90 287.00 0.90 284.20 3.70
Slaughter 2,602,000 2,530,000 72,000 2,606,371 4,371

Cattle Fundamentals

Current One Week Ago Change One Year Ago Change
North Cash 230.00 187.32
South Cash 232.86 186.73
North Steer Basis -0.25 -0.43
Choice Boxes 364.53 370.63 6.10 305.93 58.60
Select Boxes 348.91 346.83 2.08 289.33 59.58
Spread 15.62 23.80 8.18 16.60 0.98
Carcass Weights 878 862
Slaughter 557,000 555,000 2,000 611,571 54,571
FC Index 364.24 365.33 1.09 247.48 116.76

Cash Cattle Markets

Region This Week Last Week Last Year
TX/OK/NM $232.73 $186.95
KS $232.86 $186.73
NE $230.00 $187.32
IA/MN $229.81 $187.34

CFTC Disaggregated COT Report

As of: 9/23/2023
Commodity Current Managed Money Change Current Producer/Commercial Change Total OI Total OI Change
Live Cattle 124,903 2,844 -161,328 548 366,282 125
Feeder Cattle 24,327 1,564 -12,803 82 82,687 937
Lean Hogs 142,444 186 -201,313 8,394 364,963 1,414
Corn -94,675 14,624 -97,598 10,692 1,579,770 4,763
Soybeans -29,302 31,589 -92,440 27,234 941,778 264

Live Cattle Markets

December Live Cattle finished back above the 20-day MA yesterday. Support is at the 20-day MA of 235.125 and then 232.450. Resistance is at 241.350.

Feeder Cattle Markets

October Feeder Cattle reached their highest level in over a month today. Resistance is at 367.150 and then the contract high of 369.375. Support is at the 20-day MA of 356.100 followed by 353.100.

Lean Hogs Markets

December Lean Hogs continue to hold at the 50-day MA. Support is at the 50-day MA of 86.100 and then 85.575. Resistance is at the 20-day MA of 88.350.

Corn Markets

December Corn has failed to settle above the 20-day MA. Resistance is at the 20-day MA of 422 1/2 followed by 428 1/4. Support is at the 50-day MA of 414 3/4 and then last week’s low of 410 1/2.

This material should be construed as the solicitation of an account, order, and/or services provided by Producers Commodities LLC, NFA ID: 0355787 and represents the opinions and viewpoints of the author. It does not constitute an individualized recommendation or take into account the particular trading objectives, financial situations, or needs of individual customers.  Additionally, this material should not be construed as research material. The trading of derivatives such as futures and futures options may not be suitable for all investors. Derivatives trading involves substantial risk of loss, and you should fully understand the risks prior to trading. Past results are not necessarily indicative of future results. Producers Commodities LLC is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable, but its accuracy, timeliness, and/or completeness cannot be guaranteed. Contact designated personnel from Producers Commodities LLC for specific trading advice to meet your trading preferences or goals.

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