GENERAL COMMENTS:
Traders were willing to advance the cattle contracts upon seeing stronger sales in this week's fed cash cattle market, but the lean hog contracts closed mixed. Friday will be a big-hitting day with the monthly Cattle on Feed report being released, and there should be more cash cattle sales noted too. July corn is up 2 cents per bushel and July soybean meal is up $4.40. The Dow Jones Industrial Average is down 1.35 points and the NASDAQ is up 53.09 points.
Thursday's export report shared that Beef net sales of 12,300 mt for 2025 were down 16% from the previous week but up 8% from the prior 4-week average. The three largest buyers were Japan (3,600 mt), South Korea (2,800 mt) and Taiwan (1,800 mt). Pork net sales of 37,400 mt for 2025 2343 up 52% from the previous week and 68% from the prior 4-week average. The three largest buyers were Mexico (14,400 mt), China (7,800 mt) and Japan (3,300 mt).
**The annual CME special executive report came out today and once again, the CME cattle contracts are going to be allowed to have wider daily trading limits effective on Monday, June 2. Currently, the live cattle contract has a daily price limit of $6.50, but on June 2, the new daily limit for the live cattle contracts will be $7.25, with a newly expanded limit of $10.75. Currently, the feeder cattle contract has a daily price limit of $8.25, but effective on June 2, the new daily price limit will be $9.25, and the new expanded daily price limit will be $13.75.**
LIVE CATTLE:
The live cattle complex gained some unexpected momentum as traders were pleased to see the light movement in the North Wednesday afternoon as dressed fed cash cattle prices traded higher. The added support of not only higher boxed beef prices but the slight uptick in prices in the fed cash cattle market was enough to encourage traders to push the contracts higher despite their seeming commitment earlier in the week to merely hold the complex steady. On Wednesday afternoon dressed cattle prices in Nebraska ranged anywhere from $358 to $370, but mostly at $360 which is $2.00 higher than last week's weighted average. Bids have beef offered throughout the entire afternoon, but feedlot managers have thus far held off from trading any more cattle. More trade will need to develop ahead of the week's close as packers cannot afford to be short bought moving forward. June live cattle closed $1.47 higher at $215.62, August live cattle closed $1.85 higher at $210.50 and October live cattle closed $2.15 higher at $208.22.
Thursday's slaughter is estimated at 116,000 head, 4,000 head less than a week ago and 5,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.38 ($360.97) and select up $0.67 ($348.95) with a movement of 81 loads (45.92 loads of choice, 16.32 loads of select, 4.34 loads of trim and 14.26 loads of ground beef).
FRIDAY'S CATTLE CALL: Higher. Given that feedlot managers have seen that packers are indeed willing to pay more money for cattle this week they'll likely be able to advance prices.
FEEDER CATTLE:
Upon seeing the live cattle contracts trade higher thanks to the added market support of stronger fed cash cattle prices, the feeder cattle complex again followed in the live cattle market's wake and closed higher as well. August feeders closed $3.35 higher at $299.77, September feeders closed $3.57 higher at $298.62 and October feeders closed $3.65 higher at $296.45. Friday's Cattle on Feed Report is likely to be bullish as the report is not only going to likely show a year-over-year decrease in the total number of cattle on feed, but also a decrease in feedlot placements. If both these line items come in as anticipated, the report should be bullish to the complex. At Huss Livestock Auction in Kearney, Nebraska compared to their last sale two weeks ago, steers weighing 650 to 800 pounds traded steady to $10.00 higher, but steers over 800 pounds sold steady to $5.00 lower. Heifers weighing 750 to 900 pounds sold steady to $2.00 lower. Feeder cattle supply over 600 pounds was 85%. The CME feeder cattle index 5/21/2025: down $1.95, $295.69.
LEAN HOGS:
Although the morning shared a fruitful export report, the lean hog complex wasn't able to close higher in its nearby contracts as the market's resistance simply seemed to be too much to handle. June lean hogs closed $0.82 lower at $98.70, July lean hogs closed $0.47 lower at $102.05 and August lean hogs closed $0.35 lower at $102.00. Pork cutout values were up slightly this afternoon, but traders seem somewhat numb to any supportive fundamental development as they're merely fixed on the fact that the market's resistance at $100 is simply too big of a mountain for them to conquer today. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.01 with a weighted average price of $95.29 on 3,151 head. Pork cutouts totaled 204.90 loads with 173.43 loads of pork cuts and 31.46 loads of trim. Pork cutout values: up $0.23, $100.27. Thursday's slaughter is estimated at 479,000 head, 2,000 head less than a week and a year ago. The CME lean hog index 5/20/2025: up $0.49, $92.34.
FRIDAY'S HOG CALL: Lower. Packers have likely fulfilled the vast majority of their needs for the week.
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