9/30/2025 Market Commentary

Live Cattle: Live Cattle futures traded sharply lower early in the day before following the Feeder Cattle complex higher. Cash is yet to be determined this week but it feels like another week of lower trade is shaping up. There was light trade at 360 dressed in Iowa on Monday which would be $5 lower than last week’s state average. Boxed beef was lower this morning with choice being quoted $0.05 lower to $370.63 while select was $2.06 lower at $346.83. Choice is now $12.82 lower than last Tuesday while select is off $14.82. Unlike the Feeder Cattle complex, the Live Cattle futures have struggled to trade back through the 20-day MA. The deferred contracts pushed through this level near the end of trading today, but the nearby months have found resistance in that area. The cash market trading steady to lower is also preventing the nearby contracts from moving higher.

Feeder Cattle: Feeder Cattle futures finished the month sharply higher as feed costs continue to decrease and the CME Feeder Cattle index moves higher. The Feeder Cattle index released on Monday was at $367.61 following Friday’s sales, which is a new all-time record high. The October contract will expire a month from today and is currently at a discount to the cash index. The futures finished last week back above the 20-day MA and that has also offered technical support to start this week. Last Friday’s CFTC report showed the managed money as sellers of 1,564 contracts, reducing their long position to 24,327 contracts, more than 13,000 contracts off of their record set earlier this summer. It has been interesting to watch the futures remain supported as the funds continue to liquidate their long position, while open interest decreases. Open interest within the Feeder Cattle complex peaked just short of 100,000 contracts at the beginning of July and has been on a decline since that time. This morning’s open interest was 79,266, but nearly 30,000 more than the same time a year ago.

Lean Hogs: The Lean Hog complex began the week with small losses and those losses continued into Tuesday’s trade. October finished the day 1.300 lower at 99.850 and December closed the day down 1.625 at 88.725. The Lean Hog index has been lower each of the past two days and is now at $104.78, which is the lowest it has been since June 17. The midday cash hog report showed a significant number of cash hogs negotiated, with 8,505 head that averaged $102.33. The large number of negotiated hogs reflects the packers continued need for inventory on their Saturday slaughter. While the cutout remains seasonally high at just over $112.00, packers will continue to push six day harvests as long as hog inventories and labor needs remain sufficient.

Corn: Corn futures traded to their monthly lows today ahead of the end of the month and end of the quarter. December futures finished below the 20-day MA on Friday and have not been able to push back above that level the first two days this week. The USDA released their Quarterly Grain Stocks Report this morning and revised 2024 Corn production higher. This is now the third year in a row that the USDA has gone back to the previous growing season and added production to the balance sheet. The 2024 corn yield was left unchanged but harvested area was increased 315,000 acres which resulted in an increase of 25 million bushels of total production. The increase in production added supply of corn and increased the carryout on the balance sheet moving into this year.

Closing Prices

Market Month Last Change
Corn Dec 415.50 6.00
CHI Wheat Dec 508.00 11.50
KC Wheat Dec 497.75 7.75
Soybeans Nov 1001.75 8.75
Soy Oil Dec 49.49 0.20
Soy Meal Dec 273.30 2.10
Live Cattle Oct 231.850 0.525
Feeder Cattle Oct 361.025 4.825
Lean Hogs Oct 99.850 1.300
Crude Oil Nov 62.52 0.93
Ch Cutout 370.63 0.05
Sel Cutout 346.83 2.06
Feeder Index 365.33 2.28
Pork Cutout 112.22 1.30
Dollar Index 97.789 0.1170
DOW 46,308 8
National Corn Basis -42.07 0.35
National Bean Basis -80.98 0.09

Dates to Remember

September 30- Quarterly Grain Stocks

October 3- October Live Cattle Option Expiration

Hog Fundamentals

Current One Week Ago Change One Year Ago Change
Lead Month Future 99.850 100.525 0.675 82.250 17.600
National Cash 102.44 106.83 4.39 76.68 25.76
Index 104.78 104.98 0.20 84.13 20.65
Cutout 112.22 112.05 0.17 95.84 16.38
IA/SMN Cash 102.06 106.94 4.88 78.18 23.88
IA/SMN Weights 287.00 286.60 0.40 283.40 3.60
Slaughter 2,537,000 2,588,000 51,000 2,555,081 18,081

Cattle Fundamentals

Current One Week Ago Change One Year Ago Change
North Cash 232.59 187.00
South Cash 235.63 185.97
North Steer Basis 0.00 -0.43
Choice Boxes 370.63 383.45 12.82 298.08 72.55
Select Boxes 346.83 361.65 14.82 284.53 62.30
Spread 23.80 22.10 1.70 13.55 10.25
Carcass Weights 878 878 0 863 15
Slaughter 555,000 552,000 3,000 616,922 61,922
FC Index 365.33 361.10 4.23 247.24 118.09

Cash Cattle Markets

Region This Week Last Week Last Year
TX/OK/NM $235.75 $186.00
KS $235.63 $185.97
NE $232.59 $187.00
IA/MN $232.14 $187.32

CFTC Disaggregated COT Report

As of: 9/23/2025
Commodity Current Managed Money Change Current Producer/Commercial Change Total OI Total OI Change
Live Cattle 124,903 2,844 -161,328 548 378,272 2,948
Feeder Cattle 24,327 1,564 -12,803 82 79,226 1,685
Lean Hogs 142,444 186 -201,313 8,394 378,181 988
Corn -94,675 14,624 -97,598 10,692 1,538,236 1,724
Soybeans -29,302 31,589 -92,440 27,234 938,782 2,786

Live Cattle Markets

December Live Cattle have found resistance at the 20-day MA both days this week. The 20-day MA of 235.525 is the first resistance level followed by 236.500. Support is at the 50-day MA of 232.950 and then 231.750

Feeder Cattle Markets

October Feeder Cattle finished the day sharply higher. Support is at the 20-day MA of 355.550 and then 351.100. Resistance is at 364.750.

Lean Hogs Markets

December Lean Hogs have failed to post a new contract high this week. Resistance is at the contract high of 91.525. Support is at the 20-day MA of 88.550 and then 87.875.

Corn Markets

December Corn matched its monthly low of 414 this morning. Support is at 414 and then 403 1/2. Resistance is at the 20-day MA of 422 1/2 and then 428 1/4.

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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