Thursday Morning Livestock Market Update - New World Screwworm Discovered in the US

The big news is the confirmed discovery of the New World screwworm (NWS) in the U.S. The following excerpt was taken from the APHIS screwworm.gov website.

"WASHINGTON, DC, JUNE 03, 2026 -- The U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) confirmed the detection of a New World screwworm (NWS) in a bovine in Zavala County, Texas. NWS is a serious pest that affects livestock, pets, wildlife, and less commonly, people and birds. NWS larvae (maggots) burrow into the flesh of living animals, causing serious damage to livestock and economic losses. The affected animal is a 3-week-old calf, and larvae were identified in its umbilical area."

It is uncertain how the trade will react to this news, as it was confirmed after the close. Liquidation will likely take place as a reaction to the news. The positive news is that light cash trade took place on Wednesday and was steady with last week. Boxed beef prices were mixed, with choice up $1.79 and select down $0.38.

Hogs posted another day of strength, which seems to be technical in nature. The market was oversold, and short covering took place. Traders also might have decided to bottom-pick the market, anticipating that futures may make a significant price correction. Fundamentally, the market continues to struggle with the National Daily Direct Afternoon Hog report showing cash down $1.21. They are not expected to be aggressive today. Pork cutout values fell by $2.08. The weekly hog weights declined to 290.4 pounds.

	BULL SIDE		BEAR SIDE
1)	The tight supply of cattle will remain. Sale barns are seeing an increased number of cattle due to the impact of drought in areas of cattle country.	1)	The discovery of the New World screwworm in Texas may trigger significant liquidation as traders react to the news.
2)	The initial cash cattle trade this week was steady with last week. This may provide support to the market.	2)	Packers may pull back on cash in anticipation of the weakness of the cattle market.
3)	Hog futures may see further short covering to correct the oversold status of the market.	3)	Hog futures may have limited upside potential if cash and cutouts are unable to find support.
4)	Weekly hog weights declined 0.7 pounds last week to average 290.4 pounds. Further declines usually take place in the summer.	4)	Weekly hog weights remain 2.1 pounds higher than a year ago. Increased slaughter results in an ample supply of pork.

Wednesday Closing Livestock Market Update - Cattle Traders Continue to Worry about New World Screwworm

GENERAL COMMENTS:

The cattle contracts ended the day lower as traders remain on edge amid looming concerns of New World screwworm. Some light cash cattle trade developed in the North at $405, which is steady with last week's weighted average. July corn is down 9 cents per bushel and July soybean meal is down $5.40. The Dow Jones Industrial Average is down 620.72 points and the NASDAQ is down 239.92 points.

LIVE CATTLE:

With fear hovering above the cattle complex as everyone holds their breath regarding the New World screwworm situation, the live cattle contracts ended the day lower. Unfortunately, this news regarding NWS is surfacing now because earlier this afternoon, some trade developed in Nebraska at $405, which is steady with last week's weighted average. June live cattle closed $1.05 lower at $246.62, August live cattle closed $1.80 lower at $237.85 and October live cattle closed $1.87 lower at $229.00. Bids were offered throughout the day in Kansas and Texas, but no sales were noted. 

Wednesday's slaughter is estimated at 109,000 head -- 2,000 head more than a week ago and 14,000 head less than a year ago.

Boxed beef prices closed mixed: choice up $1.79 ($395.86) and select down $0.38 ($384.43) with a movement of 91 loads (50.88 loads of choice, 8.65 loads of select, 20.34 loads of trim and 11.17 loads of ground beef).

THURSDAY'S CATTLE CALL: Steady. With some light trade developing in the North at steady money, there's a chance that the week's weighted average may be able to hold steady so long as no outside news breaks.

FEEDER CATTLE:

With the live cattle contracts closing lower and there being ample pressure plaguing the cattle contracts, it surprised no one that the feeder cattle contracts closed sharply lower. August feeder cattle closed $5.80 lower at $342.62, September feeder cattle closed $5.80 lower at $339.32 and October feeder cattle closed $5.85 lower at $335.90. At the Bloomfield Livestock Auction in Bloomfield, Iowa, compared to their last sale two weeks ago, steers traded mostly $2.00 to $12.00 lower. Heifer prices were mixed, with heifers under 500 pounds trading substantially lower, while heifers over 500 pounds sold $15.00 to $18.00 higher. Feeder cattle supply over 600 pounds was 74%. The CME feeder cattle index 6/2/2026: down $0.12, $364.14.

LEAN HOGS:

Although the cattle contracts ended the day lower, thankfully, the lean hog contracts were able to maintain their mild rally through Wednesday's close. June lean hogs closed $0.35 higher at $96.05, July lean hogs closed $0.35 higher at $102.00 and August lean hogs closed $0.60 higher at $99.57. Pork cutout values didn't close higher, but traders continued to support the contracts even though they're nearing resistance. Pork cutouts totaled 327.83 loads with 279.59 loads of pork cuts and 48.24 loads of trim. Pork cutout values: down $2.08, $98.51. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.21 with a weighted average price of $94.36 on 1,848 head. Wednesday's slaughter is estimated at 485,000 head -- 17,000 head more than a week ago and 5,000 head more than a week ago. The CME lean hog index 6/3/2026: up $0.14, $91.65.

THURSDAY'S HOG CALL: Lower. At this point packers are probably done with the vast majority of their buying.

Wednesday Midday LIvestodck Market Update - Cattle Contracts Remain Hesitant Amid Looming New World Screwworm Concerns

GENERAL COMMENTS:

The livestock complex is trading mixed into Wednesday's noon hour as the cattle contracts continue to struggle amid external pressures; but the lean hog contracts are trading higher. Some light cash cattle trade has developed in Nebraska -- but not enough to say that any sort of a trend has been established for the week. July corn is down 6 1/4 cents per bushel and July soybean meal is down $3.40. The Dow Jones Industrial Average is down 439.58 points and NASDAQ is down 263.25 points.

LIVE CATTLE:

Without any significant fundamental support and concerns about New World screwworm still lingering, the live cattle contracts are trading lower into Wednesday's noon hour. June live cattle are down $0.17 at $247.50, August live cattle are down $0.07 at $239.90 and October live cattle are down $0.12 at $230.77. Unfortunately, unless the fed cash cattle market were to surprise everyone and trade higher this week, a longer lower trend is likely to remain the market's overarching theme. Some light cash cattle trade has been noted in eastern Nebraska on Wednesday morning at $405; but otherwise no more trade has developed following Tuesday's light business. On Tuesday, a handful of cattle traded in Texas at $255, but there weren't enough sold to say any sort of a trend has been accurately established for the week.

Boxed beef prices are mixed: choice up $1.94 ($396.01) and select down $0.39 ($384.42) with a movement of 62 loads (33.35 loads of choice, 4.61 loads of select, 17.91 loads of trim and 6.43 loads of ground beef).

FEEDER CATTLE:

Keeping in perfect unison with the live cattle complex, the feeder cattle contracts are also trading lower into Wednesday's noon hour as the market simply doesn't see enough immediate support to justify pushing the contracts higher at this point in time. August feeders are down $0.50 at $347.92, September feeders are down $0.85 at $344.27 and October feeders are down $1.15 at $340.60. With the live cattle contracts stuck in a lower trend, it's likely the feeder cattle contracts will be too through the day's close.

LEAN HOGS:

Even though the morning's pork cutout value is a tick lower, the lean hog contracts are continuing to trade higher. June lean hogs are up $0.20 at $95.90, July lean hog are down $0.07 at $101.57 and August lean hogs are up $0.50 at $99.47. The main reason why the spot July contract is trading lower is because traders are beginning to move their positions from June to July and the market's resistance at $102.00 remains a threshold traders aren't confident they can conquer at this time. The projected CME Lean Hog Index for 6/2/2026 is up $0.60 at $92.25 and the actual index for 6/1/2026 is up $0.29 at $91.65. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.38 with a weighted average price of $94.37, ranging from $87.00 to $96.00 on 1,345 head and a five-day rolling average of $94.14. Pork cutouts total 169.91 loads with 141.60 loads of pork cuts and 28.32 loads of trim. Pork cutout values: down $0.44, $100.15.

Wednesday Morning Livestock Market Update - Cattle Futures May See Further Weakness

GENERAL COMMENTS:

Live cattle futures did not spend any time in positive territory on Tuesday amid news of the New World screwworm. It was discovered about 25 miles from the border, resulting in renewed concerns about its potential to move into the U.S. The news put traders on edge, and liquidation took place to limit exposure in the market. There is the potential for cash cattle to trade lower this week, adding to the uncertainty. Fund traders hold a significantly long futures position, and there may be further interest in reducing those positions as uncertainty increases. Boxed beef prices were higher, with choice up $1.24 and select up $1.72. Feeder cattle futures opened lower and never looked back. Feeder cattle sales have shown weakness as buyers take a wait-and-see attitude for a little while.

Hogs spent some time in negative territory on Tuesday, making new lows, but finally uncovered buying interest as the selling pressure ran its course. Contracts closed at or near the highs, setting the stage for follow-through strength today. The oversold condition of the market may have influenced the rebound. The National Daily Direct Afternoon Hog report was up $1.71. Pork cutout values increased by $0.84. The higher slaughter pace continues, and packers need to increase purchases this week compared to last week. Packers may reduce their aggressiveness today to see whether they can purchase a sufficient supply and steady to lower cash.

	BULL SIDE		BEAR SIDE
1)	The report of the New World screwworm being found within a mile of the border was false. This may provide some support to cattle futures.	1)	Cattle futures are in a downtrend with lower highs for the past four consecutive days. The uncertainty may maintain this downtrend.
2)	Higher boxed beef prices indicate demand remains good. Beef prices will fluctuate, but strong demand will provide support.	2)	Cash cattle are expected to trade no better than steady this week, with further weakness possible.
3)	The rebound of hog futures on Tuesday after making new lows indicates the selling pressure may have run its course. The oversold market may find further short covering today.	3)	The rebound in hogs on Tuesday may have been technical and may not have long-term support.
4)	Pork demand seems to be improving, with packers maintaining a higher slaughter pace. Consumers may increase pork consumption due to high beef prices.	4)	The supply of market-ready hogs does not seem to diminish. Packers continue to have a sufficient supply to maintain the higher slaughter pace.