Friday Closing Livestock Market Update - Weaker Tones Followed Complex Into the Long Weekend

GENERAL COMMENTS:

The livestock complex ended the day mostly lower as the cattle contracts feared what the afternoon's Cattle on Feed report may showcase, and the hog contracts simply can't find the support they need to add stability to the market. No new cash cattle trade developed throughout the day. July corn is up 1 cent per bushel and July soybean meal is up $3.50. The Dow Jones Industrial Average is up 332.00 points and the NASDAQ is up 42.79 points.

From Friday to Friday, the livestock futures scored the following changes: June live cattle down $4.60, August live cattle down $8.33; August feeder cattle down $11.60, September feeder cattle down $12.28; June lean hogs down $3.00, July lean hogs down $2.95; July corn up $0.08 and September corn up $0.07.

**The markets are closed on Monday, May 25, for Memorial Day. Regular DTN market commentary will resume on Tuesday, May 26.**

LIVE CATTLE:

The live cattle complex ended the day mostly lower, although a couple of the nearby live cattle contracts were able to end the day slightly higher. June live cattle closed $0.15 higher at $249.30, August live cattle closed $0.25 higher at $239.60 and October live cattle closed $0.22 lower at $230.72. From a technical standpoint, it wasn't good to see the spot August contract end the day below its 40-day moving average. However, with plenty of fear laced throughout the complex ahead of Friday's Cattle on Feed report, it's easy to see why the market was on edge throughout the day. 

Friday's slaughter is estimated at 99,000 head -- 1,000 head less than a week and a year ago. Saturday's slaughter is projected to be around 2,000 head. The week's total slaughter is estimated at 528,000 head -- 7,000 head less than a week ago and 48,000 head less than a year ago.

Throughout the week, Southern live cattle traded at $260, which is steady with last week's weighted average and Northern dressed cattle traded at $410 to $412, which is $1.00 lower to $1.00 higher than last week's weighted average.

Boxed beef prices closed lower: choice down $1.21 ($390.27) and select down $0.65 ($385.00) with a movement of 75 loads (56.30 loads of choice, 5.40 loads of select, 6.22 loads of trim and 6.87 loads of ground beef).

TUESDAY'S CATTLE CALL: Steady. Depending on exactly how many cattle traded this week, packers may not have to be overly aggressive in next week's market, given that in the last two weeks, they've been extremely aggressive to ensure they have enough supply during peak demand season.

FEEDER CATTLE:

It was a painstaking day for the feeder cattle complex as the market anxiously awaited the unveiling of today's Cattle on Feed report. The industry knew that placements were likely going to be higher than a year ago because of the lingering drought issues, but waiting for that report to be unveiled cost the market exponentially. August feeders closed $6.67 lower at $349.85, September feeders closed $6.47 lower at $346.90 and October feeders closed $6.00 lower at $343.62. DTN's Cattle on Feed comments:

The Oklahoma Weekly Cattle Auction summary shared that, compared to last week, feeder steers traded unevenly steady, but feeder heifers sold steady to $5.00 lower. Steer calves over 500 pounds sold unevenly steady, but under 500 pounds traded $12.00 to $17.00 lower. Heifer calves over 500 pounds sold unevenly steady, but under 500 pounds traded $7.00 to $14.00 lower. Slaughter cows sold steady to $3.00 higher and slaughter bulls sold $6.00 higher. Feeder cattle supply over 600 pounds was 76%. The CME feeder cattle index 5/21/2026: not available at this time.

LEAN HOGS:

It was a lackadaisical day for the lean hog complex as the market mostly kept with its lower trend for the week. Yes, closing pork cutout values may have been able to close a tick higher, but for traders, the support came too late in the week to make a meaningful impact. July lean hogs closed $0.37 higher at $100.40, August lean hogs closed $0.15 lower at $100.07 and October lean hogs closed $0.27 lower at $87.12. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.35 with a weighted average price of $93.23 on 1,452 head. Pork cutouts totaled 326.17 loads with 295.37 loads of pork cuts and 30.80 loads of trim. Pork cutout values: up $0.62, $96.26. Friday's slaughter is estimated at 409,000 head -- 29,000 head less than a week ago and 14,000 head less than a year ago. Saturday's slaughter is projected to be around 7,000 head. The CME lean hog index 5/20/2026: up $0.07, $91.07.

TUESDAY'S HOG CALL: Steady. Given that packers weren't aggressive in the market this week, they may have to show better interest in next week's market.

Friday Midday Livestock Market Update - Cattle Continue to Plumet Lower

GENERAL COMMENTS:

The livestock contracts are trading fully lower into Friday's noon hour as cattle traders weigh fears, waiting for the monthly Cattle on Feed report to be released. The lean hog complex simply can't find enough support. No new cash cattle trade has developed. July corn is up 2 cents per bushel and July soybean meal is up $3.00. The Dow Jones Industrial Average is up 380.98 points and NASDAQ is up 139.62 points.

LIVE CATTLE:

With the anticipation of a bearish Cattle on Feed report looming heavily over the complex -- it comes as no real surprise that the live cattle contracts are trading lower into Friday's noon hour. June live cattle are down $0.65 at $248.50, August live cattle are down $1.42 at $237.85 and October live cattle are down $2.30 at $228.65. No new bids are currently on the table in the cash market and it looks like the bulk of this week's trade is essentially done with, although a little more clean-up trade could happen after the Cattle on Feed report is released.

So far this week, Southern live deals have been done at mostly $260, steady/weak with last week's weighted average. Northern dressed deals have had a fairly wide range of $408 to $415, mostly $410 to $412, $1 lower to $1 higher than the previous week's weighted average, basis Nebraska.

Boxed beef prices are mixed: choice down $1.59 ($389.89) and select up $0.64 ($386.29) with a movement of 53 loads (42.05 loads of choice, 1.95 loads of select, 3.61 loads of trim and 5.71 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex can't stand it! Walking on egg shells and feeling like the oxygen is slowly being pulled from the air that traders breathe, the feeder cattle contracts are enduring yet another bloodbath Friday as everyone waits to see what Friday's Cattle on Feed report is going to unveil. August feeders are down $10.60 at $345.00, September feeders are down $10.42 at $243.95 and October feeders are down $10.12 at $339.50.

LEAN HOGS:

And although the lean hog complex isn't feeling the same exact pressure the cattle contracts are, it too is lower as traders simply can't find enough support in the market to justify pushing the contracts higher. June lean hogs are up $0.12 at $95.25, July lean hogs are down $0.52 at $99.50 and August lean hogs are down $0.90 at $99.32. Yes, midday pork cutout values are a tick higher, but at this point in the week that doesn't mean much to traders ahead of a long weekend.

The projected CME Lean Hog Index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $92.79, ranging from $91.50 to $95.00 on 512 head and a five-day rolling average of $93.57. Pork cutouts totaled 246.48 loads with 96.64 loads of pork cuts and 23.24 loads of trim. Pork cutout values: up $1.00, $96.64.

Friday Morning Livestock Market Update - Follow-Through Weakness Expected

GENERAL COMMENTS:

Traders not only positioned themselves ahead of the report but also aggressively liquidated positions. Some cash trade developed at steady prices in the South and $4.00 lower in the North on a live cattle basis. This likely set the stage for cash activity for the week. It is not that supplies have increased and consumer demand has declined, but packers are not aggressive due to the Memorial Day weekend. Traders were concerned over anything unexpected that could develop over the weekend, but also the Cattle on Feed report to be released today. The expectation for placements to be 3% above a year ago would be negative. The range of estimates is wide as usual, from 95.7% to 108.5%. On feed is estimated at 101.4% with a range of 100.2% to 102.4%. Cattle marketed in April is estimated at 90.5% with a range of 89.7% to 91.7%. Boxed beef was lower, with choice down $2.14 and select down $5.18. Feeder cattle closed limit down, resulting in an expanded trading limit today of $13.75.

Hog futures possibly fell in sympathy with cattle and because futures fell below support in all contracts, triggering further selling. Contracts closed at the lowest level since late November in the June contract and mid-December in other contracts. Other fundamental news did not surface to trigger the selling. Packers were not aggressive with purchases, and the National Daily Direct Afternoon Hog report was only down $0.18. Pork cutout values increased by $0.17. Not much cash activity is expected today. Markets will be closed on Monday in observance of Memorial Day.

	BULL SIDE		BEAR SIDE
1)	Cattle supplies remain tight, and demand remains strong. This is not expected to change anytime soon.	1)	Feeder cattle closing limit down may result in follow-through selling as traders who could not liquidate on Thursday will try to get out today.
2)	Once the Cattle on Feed report is released, traders may take advantage of lower prices and buy back into the market.	2)	Steady-to-lower cash cattle is negative and may increase selling pressure on live cattle.
3)	Hogs did not have a change in fundamentals that would have negatively impacted the market. Futures are oversold and ready for a bounce.	3)	Hog futures falling through technical support on Thursday could result in further liquidation into the weekend.
4)	The strong slaughter pace is keeping hog supplies current. This may support the price as the year progresses and hog supplies tighten.	4)	Cash is not expected to be supportive today as packers may have finished buying hogs for the week.

Thursday Closing Livestock Market Update - Contracts Continue to Fall Lower

GENERAL COMMENTS:

The livestock complex closed lower Thursday afternoon, as traders couldn't find enough support to keep the contracts stable. More than anything, the fear of Friday's Cattle on Feed report is weighing heavily on the market. July corn is down 3 1/2 cents per bushel and July soybean meal is down $2.50. The Dow Jones Industrial Average is up 276.31 points and the NASDAQ is up 22.74 points.

LIVE CATTLE:

It was a completely disappointing day for the live cattle complex as fear spread throughout the marketplace and pulled the contracts sharply lower. More than anything, traders remain on edge about Friday's Cattle on Feed report as placements are expected to be higher than a year ago, thanks to slower turnover speeds in feedlots, and because of the widespread drought affecting most of the High Plains. June live cattle closed $4.12 lower at $249.15, August live cattle closed $5.95 lower at $239.35 and October live cattle closed $5.82 lower at $230.95. Some cash cattle trade developed in the South at $260, which is steady with last week's weighted average, but in the North, cattle traded live at $260 as well, which is $4.00 lower than last week's weighted average. 

Thursday's slaughter is estimated at 109,000 head -- 1,000 head more than a week ago and 8,000 head less than a year ago.

Boxed beef prices closed lower: choice down $2.14 ($391.48) and select down $5.48 ($385.65) with a movement of 109 loads (77.06 loads of choice, 9.84 loads of select, 8.56 loads of trim and 13.35 loads of ground beef).

FRIDAY'S CATTLE CALL: Steady. With trade having developed in both regions now, it's likely that any more trade that develops will be steady with the week's weighted average.

FEEDER CATTLE:

In bracing themselves for tomorrow's Cattle on Feed report, the feeder cattle contracts closed limit lower. August feeders closed $9.25 lower at $356.52, September feeders closed $9.25 lower at $353.37 and October feeders closed $9.25 lower at $349.62. More than anything, the unknowingness of Friday's big report weighed heavily on the market and caused it to close lower. At the Clovis Livestock Auction in Clovis, New Mexico, compared to last week, feeder steers weighing 600 to 700 pounds sold lower while steers weighing 800 to 850 pounds traded higher. Heifer calves weighing 300 to 400 pounds sold $5.00 to $8.00 higher and heifers weighing 400 to 600 pounds traded $8.00 to $15.00 lower. Feeder cattle supply over 600 pounds was 36%. The CME feeder cattle index 5/20/2026: down $1.72, $370.72.

LEAN HOGS:

Pork cutouts may have closed slightly higher, but traders can't seem to find enough support in the marketplace to help add stability to the lean hog complex. June lean hogs closed $2.15 lower at $95.12, July lean hogs closed $1.95 lower at $100.02 and August lean hogs closed $1.60 lower at $100.22. And at this point, the market's lower trend is likely to continue into Friday. Hog prices on the Daily Direct Afternoon Hog Report averaged $93.58, on 1,105 head, down $0.18 from Thursday. Pork cutouts totaled 274.01 loads with 245.10 loads of pork cuts and 28.91 loads of trim. Pork cutout values: up $0.17, $95.64. Thursday's slaughter is estimated at 478,000 head -- 14,000 head more than a week ago and steady with a year ago. The CME lean hog index 5/19/2026: up $0.45, $91.00.

FRIDAY'S HOG CALL: Lower. Packers have shown that they aren't going to participate much in this week's cash market.