HOGS

• Lean hog futures continued with October closing higher, while Dec on back moved lower.  Considering the large pressure in the cattle complex, lean hog futures held well.
• The national cash price average was higher at $106.10, up $2.27, yet seems as if packers have procured enough inventory for now.
• Cutout saw pressure with all but the “butt” moving lower, pushing cutout down $2.22 for the day.  Good demand is needed to support the market. Seasonally larger available supplies, cooler weather, all tend to be less supportive of cutout values.  Values have not seen the typical decline this time of year.
• Japan’s swine inventory at the beginning of 2026 is expected to remain almost flat from the previous year at 8,650 thousand head. Pork consumption remains robust at 2,765 thousand MT CWE, driven by its affordability during inflation, with strong household and foodservice demand offsetting weaker demand for processed pork products due to price increases. Pork imports slowed in the second half of 2025 due to high inventory levels, but are expected to rebound in 2026 to meet strong domestic demand.
• The FAO Meat Price Index averaged 128.0 points in August, up 0.7 points (0.6%) from July and 5.9 points (4.9%) from a year ago, marking a new all-time high. World pig meat prices remained broadly steady amid balanced global demand and supply conditions.

GRAINS

• Dec corn is down 1 1/2. Nov beans down 2. Equities are higher, and crude oil is higher. Gold is higher.
• The average trade estimate for Friday’s September WASDE report is below. Once again we have a large range of estimates on the national corn yield.
• In last year’s September WASDE report the USDA increased yield despite the poor finish in August we were experiencing last year. With the dry finish we have had out east this year it will be interesting to see if the USDA decides to do the same.
• These grain markets seem to have be trading in a sideways trend until this report comes out. This will be an important report to watch for.

Cattle

• Live cattle had a poor day, feeder cattle plummeted and were locked in a limit-down position through the close of trading in all contracts throughout the next year. Live cattle suffered substantial losses as well but were not locked limit-down. Expanded trading limits are in place today, with the daily limit for live cattle at $10.75 and $13.75 for feeder cattle.
• The high price cattle futures were oversold likely due for some correction.  Some attention has been placed on President Trump's comment that he would take action on high beef prices, which was sufficient to trigger the liquidation.  Yet the means of how this could be accomplished are not mentioned.
• Packers are always ready and prepared to take advantage of any tools available to improve their margins by purchasing cattle at lower prices. Live sales in the north were at $238 and dressed sales at $378 — both $5 lower.
• Last week, there was little difference in live prices between north and south. Falling placements in Texas, when compared to other regions, are directly related to the closing of the border.
• Cutout was mixed with choice down $2.02 and select up $1.62.

Weather

• Rain chances remain minimal for the Plains and Midwest this week before moving in to the west into the weekend; the pattern moves to a wet west/dry east past that. Temperatures will heat up right up through late September.