GENERAL COMMENTS:
The livestock complex closed lower Thursday afternoon, as traders couldn't find enough support to keep the contracts stable. More than anything, the fear of Friday's Cattle on Feed report is weighing heavily on the market. July corn is down 3 1/2 cents per bushel and July soybean meal is down $2.50. The Dow Jones Industrial Average is up 276.31 points and the NASDAQ is up 22.74 points.
LIVE CATTLE:
It was a completely disappointing day for the live cattle complex as fear spread throughout the marketplace and pulled the contracts sharply lower. More than anything, traders remain on edge about Friday's Cattle on Feed report as placements are expected to be higher than a year ago, thanks to slower turnover speeds in feedlots, and because of the widespread drought affecting most of the High Plains. June live cattle closed $4.12 lower at $249.15, August live cattle closed $5.95 lower at $239.35 and October live cattle closed $5.82 lower at $230.95. Some cash cattle trade developed in the South at $260, which is steady with last week's weighted average, but in the North, cattle traded live at $260 as well, which is $4.00 lower than last week's weighted average.
Thursday's slaughter is estimated at 109,000 head -- 1,000 head more than a week ago and 8,000 head less than a year ago.
Boxed beef prices closed lower: choice down $2.14 ($391.48) and select down $5.48 ($385.65) with a movement of 109 loads (77.06 loads of choice, 9.84 loads of select, 8.56 loads of trim and 13.35 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. With trade having developed in both regions now, it's likely that any more trade that develops will be steady with the week's weighted average.
FEEDER CATTLE:
In bracing themselves for tomorrow's Cattle on Feed report, the feeder cattle contracts closed limit lower. August feeders closed $9.25 lower at $356.52, September feeders closed $9.25 lower at $353.37 and October feeders closed $9.25 lower at $349.62. More than anything, the unknowingness of Friday's big report weighed heavily on the market and caused it to close lower. At the Clovis Livestock Auction in Clovis, New Mexico, compared to last week, feeder steers weighing 600 to 700 pounds sold lower while steers weighing 800 to 850 pounds traded higher. Heifer calves weighing 300 to 400 pounds sold $5.00 to $8.00 higher and heifers weighing 400 to 600 pounds traded $8.00 to $15.00 lower. Feeder cattle supply over 600 pounds was 36%. The CME feeder cattle index 5/20/2026: down $1.72, $370.72.
LEAN HOGS:
Pork cutouts may have closed slightly higher, but traders can't seem to find enough support in the marketplace to help add stability to the lean hog complex. June lean hogs closed $2.15 lower at $95.12, July lean hogs closed $1.95 lower at $100.02 and August lean hogs closed $1.60 lower at $100.22. And at this point, the market's lower trend is likely to continue into Friday. Hog prices on the Daily Direct Afternoon Hog Report averaged $93.58, on 1,105 head, down $0.18 from Thursday. Pork cutouts totaled 274.01 loads with 245.10 loads of pork cuts and 28.91 loads of trim. Pork cutout values: up $0.17, $95.64. Thursday's slaughter is estimated at 478,000 head -- 14,000 head more than a week ago and steady with a year ago. The CME lean hog index 5/19/2026: up $0.45, $91.00.
FRIDAY'S HOG CALL: Lower. Packers have shown that they aren't going to participate much in this week's cash market.
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