GENERAL COMMENTS:
It was a mixed day for the livestock complex, as the cattle complex was cut short of the day it was expected to have by false rumors, but the lean hog complex closed higher. New showlists appear to be mixed -- higher in the South, but lower in Nebraska/Colorado. July corn is steady and July soybean meal is steady. The Dow Jones Industrial Average is up 740.58 points and the NASDAQ is up 461.95 points.
LIVE CATTLE:
It was a topsy-turvy day for the cattle complex as rumors spread early in the morning that there was a confirmed case of New World screwworm in the U.S., but that has been confirmed to be a false statement by USDA. Nevertheless, the rumor sucked all the momentum right out of the live cattle complex as its contracts closed mostly $1.00 lower. June live cattle closed $0.67 lower at $215.12, August live cattle closed $1.15 lower at $209.30 and October live cattle closed $1.02 lower at $207.07. No developments in the fed cash cattle market surfaced throughout the day. New showlists appear to be mixed, higher in the South, but lower in Nebraska/Colorado. Tuesday's slaughter is estimated at 114,000 head, 6,000 head less than a week ago and 10,000 head less than a year ago.
Last week, Northern dressed cattle traded on Wednesday for a wide range of $354 to $370, but mostly at $360, which is $2.00 higher than the previous week's weighted average. Southern live cattle traded on Friday at mostly $219 to $220, which is steady to $1.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 55,464 head. Of which 71% (39,592 head) were committed to the nearby delivery, while the remaining 29% (15,872 head) were committed to the deferred delivery option.
Boxed beef prices closed mixed: choice up $0.30 ($361.85) and select down $0.49 ($350.83) with a movement of 112 loads (62.48 loads of choice, 13.40 loads of select, 20.20 loads of trim and 15.77 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. With packers anticipated to process starkly fewer cattle this week, it's likely that fed cash cattle prices will be steady at best.
FEEDER CATTLE:
The feeder cattle complex was gravely affected by the downward spiral the live cattle contracts endured. It was all a psychological game, as the rumor that was spread about NWS being found in the U.S. was confirmed to be false by the USDA. Even so, the positive news Friday's Cattle on Feed report shared was virtually no help as the market was fixated on rumors and rumors alone today. August feeders closed $2.22 lower at $298.15, September feeders closed $2.10 lower at $297.25 and October feeders closed $2.00 lower at $295.35. At OKC West Livestock Auction in El Reno, Oklahoma, at their midsession point and when compared to last week, steer and heifer calves were trading $8.00 to $13.00 higher, but the biggest advancement was seen on heifers. Feeder cattle supply over 600 pounds was 23%. The CME feeder cattle index 5/26/2025: down $0.16, $296.09.
LEAN HOGS:
The lean hog complex was well supported throughout the day as not only were traders able to find some technical support in the marketplace, but they were also pleased to see the slight uptick in pork cutout values. June lean hogs closed $0.80 higher at $99.10, July lean hogs closed $0.60 higher at $102.15 and August lean hogs closed $0.90 higher at $102.17. This afternoon's carcass price was able to jump significantly higher mainly thanks to the $7.48 gain in the belly, but also the $3.79 jump in the ham. Hog prices are unavailable on the Daily Direct Afternoon Hog Report because of confidentiality. However, we can see that only 2,485 head traded throughout the day and that the market's five-day rolling average now sits at $95.22. Pork cutouts totaled 327.56 loads with 281.06 loads of pork cuts and 46.50 loads of trim. Pork cutout values: up $2.27, $103.73. Tuesday's slaughter is estimated at 488,000 head – 4,000 head less than a week ago and 12,000 head more than a year ago. The CME lean hog index 5/22/2025: up $0.19, $92.94.
WEDNESDAY'S HOG CALL: Higher. With pork cutout values seeing a bump of support, packers may opt to purchase more inventory in the cash market.
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