Tuesday Closing Livestock Market Update - Cattle Lower as Traders Want to See More Support Fundamentally

GENERAL COMMENTS:

It was a mixed day for the livestock complex as the cattle contracts switched gears and closed lower as traders want to see more fundamental support develop. The lean hog complex closed mixed as the deferred contracts maintained their higher position, but the nearby contracts closed lower as pork cutout values dipped slightly. July corn is up 1/4 cent per bushel and July soybean meal is up $0.60. The Dow Jones Industrial Average is up 214.16 points and the NASDAQ is up 156.35 points.

LIVE CATTLE:

The live cattle complex rounded out the day lower as traders simply didn't feel comfortable pressing the market's resistance threshold without seeing more fundamental support develop this week. And low and behold, it's likely that they're pleased with their decision given that afternoon boxed beef prices softened. June live cattle closed $0.57 lower at $215.97, August live cattle closed $1.25 lower at $209.75 and October live cattle closed $1.27 lower at $207.92. No trade has developed yet this week in the fed cash cattle market, but asking prices are established in Texas at $226. 

Tuesday's slaughter is estimated at 121,000 head, 7,000 head more than a week ago and 2,000 head less than a year ago.

Boxed beef prices closed lower: choice down $0.56 ($365.44) and select down $1.59 ($356.52) with a movement of 115 loads (60.41 loads of choice, 11.85 loads of select, 16.26 loads of trim and 26.56 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Steady/somewhat higher. Although packers were able to buy up some supply last week, their throughput has also increased this week, which will likely mean that cash prices will trade steady if not higher again.

FEEDER CATTLE:

The feeder cattle complex wasn't willing to trade higher without the support of the live cattle contracts. So upon seeing the live cattle contracts venture lower, the feeder cattle contracts quickly followed suit. August feeders closed $0.52 lower at $301.22, September feeders closed $0.47 lower at $300.42 and October feeders closed $0.42 lower at $298.65. The Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to two weeks ago, feeder steers traded $5.00 to $10.00 higher. Steers weighing 600 to 700 pounds traded steady to $3.00 lower. The sale report did note that it's apparent that grass buyers have pulled out of the market. Steer calves traded $2.00 to $6.00 higher. Feeder heifers traded $3.00 to $7.00 higher, and heifer calves sold steady to $1.00 higher. Feeder cattle supply over 600 pounds was 76%. The CME feeder cattle index 6/2/2025: up $0.35, $301.48.

LEAN HOGS:

The lean hog complex rounded out the day mixed as traders would have ideally liked to push the contracts fully higher – but without knowing that the market was indeed going to see better fundamental support, traders weren't willing to allow the nearby contracts to close higher. July lean hogs closed $0.40 lower at $104.57, August lean hogs closed $0.55 higher at $106.45 and October lean hogs closed $0.55 at $89.85. Again, this afternoon, the only major cut that closed higher was the rib, but all the other cuts closed slightly lower, which pulled the carcass price down. Hog prices on the Daily Direct Afternoon Hog Report averaged $98.84 on 9,306 head. Pork cutouts totaled 348.49 loads, with 313.46 loads of pork cuts and 35.03 loads of trim. Pork cutout values: down $0.64, $106.11. Tuesday's slaughter is estimated at 482,000 head, 4,000 head more than a week ago and 3,000 head more than a year ago. The CME lean hog index 5/30/2025: up $0.06, $95.90.

WEDNESDAY'S HOG CALL: Steady. Packers bought more aggressively this afternoon, but it's likely that they still need more hogs.