GENERAL COMMENTS:
The livestock futures closed mixed with the live cattle complex able to maintain its higher position through the day's end, thanks to some added support of the fed cash cattle market. However, both the lean hog and feeder cattle contracts closed lower. Some light trade developed in the North at $360, which is $2.00 higher than last week's weighted average. July corn is up 6 1/2 cents per bushel and July soybean meal is up $1.50. The Dow Jones Industrial Average is down 843.46 points and NASDAQ is down 300.71 points.
LIVE CATTLE:
The live cattle complex was able to keep its higher trend through the day's end, although traders still seem reluctant to advance the contract much beyond steady territory. June live cattle closed $0.97 higher at $214.15, August live cattle closed $0.80 higher at $208.65 and October live cattle closed $0.77 higher at $206.07. But the biggest news of the day was the fact that some dressed cattle sold in Nebraska at $360, which is $2.00 higher than last week's weighted average. It's likely that packers realized that they simply cannot afford to be short bought moving forward, which means that they need to stay active and engaged in the market even though they have some supply built up around them. A regional packer paid as much as $365 for some dressed cattle in central Nebraska with a set delivery for the week of June 9. Wednesday's movement in the fed cash cattle market was extremely light, so more business will need to develop ahead of the week's end.
Wednesday's slaughter is estimated at 120,000 head -- 1,000 head more than a week ago and 2,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.84 ($359.59) and select up $3.32 ($348.28) with a movement of 122 loads (73.89 loads of choice, 19.84 loads of select, 5.99 loads of trim and 22.40 loads of ground beef).
THURSDAY'S CATTLE CALL: Higher. It was originally assumed that prices would trade steady this week, but given that there has been some light trade noted in the North at higher prices, it's likely that other feedlot managers will demand the same later this week.
FEEDER CATTLE:
Although, the live cattle complex was able to maintain its stamina through the day's end, the feeder cattle complex only grew weaker and weaker as the day traded onward. May feeders closed $0.30 higher at $296.30, August feeders closed $1.07 lower at $296.42 and September feeders closed $1.15 lower at $295.05. More than anything, traders simply don't seem willing to jump back into the market and actively trade the feeder cattle complex until potentially after the long three-day weekend. It will be interesting to see how traders react to Friday's Cattle on Feed report as it's expected to be neutral/somewhat bullish, which could potentially be a bullish catalyst for the market early next week if pre-report estimates are accurate. At Roswell Livestock Auction in Roswell, New Mexico, compared to last week, steer calves weighing 450 to 550 pounds traded $9.00 to $10.00 lower, except for those weighing 450 to 500 traded $15.00 to $22.00 higher. Feeder steers weighing 600 to 650 pounds sold $12.00 to $18.00 higher. Heifer claves weighing 400 to 500 pounds traded $4.00 to $10.00 lower, while heifers weighing 500 to 550 pounds traded $15.00 to $21.00 higher. Feeder cattle supply over 600 pounds was 58%. The CME feeder cattle index 5/20/2025: up $0.33, $297.64.
LEAN HOGS:
The lean hog complex closed fully lower as the market's resistance at $100.00 simply proved to be too much for traders to grapple with. June lean hogs closed $0.50 lower at $99.52, July lean hogs closed $1.02 lower at $102.52 and August lean hogs closed $0.65 lower at $102.35. Given that traders aren't finding the support they need fundamentally or technically, it's unlikely that the market advances at all ahead of the week's end given that traders are eagerly waiting for the long holiday weekend. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.90 with a weighted average price of $95.30 on 5,746 head. Pork cutout totaled 221.66 loads with 190.30 loads of pork cuts and 31.36 loads of trim. Pork cutout values: down $0.48, $100.04. Wednesday's slaughter is estimated at 485,000 head -- 1,000 head less than a week ago and 1,000 head more than year ago. The CME lean hog index 5/19/2025: up $0.39, $91.85.
THURSDAY'S HOG CALL: Lower. Given that packers have bought a sizeable volume already this week, it's likely that they're mostly done buying at this point.
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