GENERAL COMMENTS:
It was a fairly quiet day for the livestock complex, with the only real excitement being that of the uptick in boxed beef prices. Still no cash cattle trade has developed. July corn is up 7 cents per bushel and July soybean meal is up $1.50. The Dow Jones Industrial Average is down 114.83 points and the NASDAQ is down 72.75 points.
LIVE CATTLE:
The live cattle complex had some success throughout the day as the contracts traded slightly higher, but most importantly, boxed beef prices seemed to grab consumers' attention as prices closed higher. June live cattle closed $0.20 higher at $213.17, August live cattle closed $0.07 lower at $207.85 and October live cattle closed $0.22 higher at $205.30. And while today's slightly higher close doesn't signal that the market is indeed ready to break out and trade higher, and if anything, it's another sign that traders will likely chop the complex sideways throughout the week, a day of a slightly higher close beats that of a day of a lower close. Still no cash cattle trade has developed, and none will likely until Thursday or Friday.
Tuesday's slaughter is estimated at 120,000 head, 1,000 head less than a week ago and 3,000 head more than a year ago.
Boxed beef prices closed higher: choice up $3.94 ($358.75) and select up $0.85 ($344.96) with a movement of 101 loads (58.35 loads of choice, 17.68 loads of select, 15.32 loads of trim and 9.50 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady/somewhat lower. It's assumed that when trade develops later this week that prices will be steady at best because packers have been able to buy up supply in recent weeks and are buying for the upcoming holiday-shortened week.
FEEDER CATTLE:
The feeder cattle complex was able to close higher thanks to the continued support of the live cattle contract's slightly higher trend. August feeders closed $0.02 higher at $297.50, September feeders closed $0.12 lower at $296.20 and October feeders closed steady at $294.05. Please note that on Friday, the monthly Cattle on Feed report is expected to be released. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, all classes of cattle traded $5.00 to $10.00 lower. The market report noted that, "Despite the plain quality and last week's downturn in the cattle futures, the market remained relatively strong, reflecting continued buyer demand and underlying market support." Feeder cattle supply over 600 pounds was 77%. The CME feeder cattle index 5/19/2025: down $1.53, $297.33.
LEAN HOGS:
The lean hog complex tried to trade fully higher, but the market's nearby contracts simply don't have enough support to push past the nearby resistance at $101.00. June lean hogs closed $0.77 higher at $100.02, July lean hogs closed $0.02 lower at $103.55 and August lean hogs closed $0.10 lower at $103.00. Pork cutout values were just doggish throughout the day, which led to the carcass's slightly lower dip. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.89 with a weighted average price of $93.40 on 6,210 head. Pork cutouts total 304.32 loads with 272.81 loads of pork cuts and 31.50 loads of trim. Pork cutout values: down $0.57, $100.52. Tuesday's slaughter is estimated at 484,000 head, 3,000 head more than a week ago and 12,000 head more than a year ago. The CME lean hog index 5/16/2025: up $0.20, $91.46.
WEDNESDAY'S HOG CALL: Steady. Given that packers bought a considerable volume today, prices could remain steady on Wednesday.
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