GENERAL COMMENTS:
The livestock complex ended the day mixed, with cattle contracts finishing weaker while hog contracts found modest support. Throughout the day some light trade was noted in the South at $260 which is $3.00 higher than last week's weighted average and some light trade was noted in the North at $400 which is $2.00 to $3.00 lower than the previous week's weighted average. July corn is up 4 cents per bushel and July soybean meal is up $5.10. The Dow Jones Industrial Average is up 95.31 points and the NASDAQ is up 27.05 points.
LIVE CATTLE:
It was an exhausting day for the live cattle complex as the market was bombarded with all sorts of mixed signals. Initially, it looked as though it was going to be a prosperous, bullish day for the marketplace as the contracts started trading higher at Monday's open -- and lo and behold, bids even began to surface in the fed cash cattle market, and eventually even some trade developed. But then news broke midmorning that the Trump administration plans to temporarily reduce tariffs on beef imports from Brazil, which sent contracts tumbling lower. Today was a perfect case in point of how headline trading can rob the market of its fundamental success -- even boxed beef prices are rallying and some cash cattle trade is developing. June live cattle closed $0.50 higher at $249.40, August live cattle closed $0.55 lower at $243.55 and October live cattle closed $1.62 lower at $236.67. Throughout the day some light trade was noted in the South at $260 which is $3.00 higher than last week's weighted average and some light trade was noted in the North at $400 which is $2.00 to $3.00 lower than the previous week's weighted average. But today's movement was thin, so this week's weighted average could still change later in the week when more volume is traded. Monday's slaughter is estimated at 102,000 head -- 4,000 head more than a week ago and 5,000 head more than a year ago.
Last week, Northern dressed sales were marked at mostly $402, which is $3.00 higher than the previous week's weighted average. Southern live cattle traded at mostly $256 to $257, which is $2.00 to $3.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 107,454 head. Of that, 71% (76,701 head) are committed to nearby delivery, while the remaining 29% are committed to the market's deferred delivery option.
Boxed beef prices closed higher: choice up $2.83 ($391.22) and select up $6.48 ($391.49), with a movement of 102 loads (58.04 loads of choice, 13.02 loads of select, 15.24 loads of trim and 15.85 loads of ground beef).
TUESDAY'S CATTLE CALL: Higher. Packers showed that they're still short bought and needing more cattle when they began buying Monday's market.
FEEDER CATTLE:
Of course, the futures market's volatility negatively affected the feeder cattle complex, as it too ended the day lower. May feeders closed $1.02 higher at $368.40, August feeders closed $1.92 lower at $362.30, and September feeders closed $2.07 lower at $360.15. More than anything, traders are being careful to not move the complex in an adverse direction to the live cattle market's behavior, and traders are aware that buyers are becoming more selective in the countryside as their grass orders are filling up. At Joplin Regional Stockyard in Carthage, Missouri, compared to last week and at the mid-session point, feeder steers were trading $4.00 higher to $8.00 lower, and feeder heifers were selling $10.00 higher to $15.00 lower. Feeder cattle supply over 600 pounds was 62%. The CME feeder cattle index 5/8/2026: up $2.54, $374.83.
LEAN HOGS:
The lean hog complex ended the day stronger as traders finally lent the complex a little support. June lean hogs closed $1.60 higher at $100.22, July lean hogs closed $1.45 higher at $104.65, and August lean hogs closed $1.27 higher at $105.70. Unfortunately, pork demand was soft again this afternoon, but traders didn't seem to pay that any attention. Hog prices are not available on the Daily Direct Afternoon Hog Report because of confidentiality. However, we can see that only 525 head traded throughout the day and that the market's five-day rolling average now sits at $94.80. Pork cutouts totaled 295.65 loads with 271.49 loads of pork cuts and 24.15 loads of trim. Pork cutout values: down $0.58, $96.98. Monday's slaughter is estimated at 462,000 head -- 17,000 head less than a week ago and 1,000 head less than a year ago. The CME lean hog index 5/7/2026: down $0.23, $90.79.
TUESDAY'S HOG CALL: Higher. Packers paid the market very little attention today which likely means that they'll need to be more aggressive later in the week.
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