Tuesday Closing Livestock Market Update - Weaker Tones Stick with the Contracts

GENERAL COMMENTS:

The livestock complex again ended the day lower -- exhausted from far too many headlines surrounding beef imports and tariffs. Bids were offered throughout the day in the cash market, but no new sales were noted. June lean hogs are down $1.80 at $98.425, July corn is up 4 3/4 cents per bushel and July soybean meal is up $3.60. The Dow Jones Industrial Average is up 56.09 points and the NASDAQ is down 185.93 points.

LIVE CATTLE:

It has been an exhausting two days for the live cattle complex, and copious amounts of fear surrounding what headline could come next has taken the market's focus off its bullish fundamental position and instead ensued fear and panic back into the complex. And because of such volatile, emotional trading, the live cattle contracts are back to trading lower. June live cattle closed $1.70 lower at $247.70, August live cattle closed $2.47 lower at $241.07 and October live cattle closed $2.80 lower at $233.87. Bids were offered throughout the day in the cash market but no new trade developed following Monday's movement. On Monday there was some light trade noted in the North at $400 which is $2.00 to $3.00 lower than last week's weighted average and a few Southern live cattle were traded at $260 which is $3.00 higher than the previous week's weighted average. 

Tuesday's slaughter is estimated at 108,000 head -- 1,000 head more than a week ago and 13,000 head less than a year ago.

Tuesday's WASDE report shared mixed news for the cattle and beef markets of 2026. Beef production for 2026 was 243 million pounds as slower marketings of fed cattle have affected throughput and cull cow slaughter is lighter than years past as well. Quarterly steer prices were increased substantially from last month as the cash market continues to rally and trade far higher than was originally assumed, Steers in the second quarter are now expected to average $253 (up $12.00 from last month); steers in the third quarter are expected to average $252 (up $10.00 from last month); and steers in the fourth quarter are expected to average $255 (up $10.00 from last month). Beef imports increased by 319 million pounds and beef exports fell by four million pounds from last month's projections.

Boxed beef prices closed lower: choice down $0.49 ($390.73) and select down $0.22 ($391.27) with a movement of 96 loads (69.88 loads of choice, 14.08 loads of select, 4.55 loads of trim and 7.46 loads of ground beef).

WEDNEDSAY'S CATTLE CALL: Steady. Even though the board has been erratic, feedlot managers know that their showlists are thin and now is the time to drive the market higher before supply builds back up.

FEEDER CATTLE:

The feeder cattle complex continues to mirror the live cattle market's direction and behavior, which is why the complex closed lower again this afternoon. But with the day's lower end, the spot August contract is hovering just above its 100-day moving average which is a technical threshold that needs monitored moving forward as a close below that price point could signal even more technical pressure. May feeders closed $2.50 lower at $365.90, August feeders closed $5.75 lower at $356.55 and September feeders closed $6.27 lower at $353.87. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers traded $5.00 to $10.00 lower and feeder heifers traded steady to $5.00 lower. Steer and heifer calves weren't well tested but on a very limited test, prices traded $10.00 to $20.00 lower -- with several strings of unweaned calves being offered. Feeder cattle supply over 600 pounds was 77%. The CME feeder cattle index 5/11/2026: not available at this time.

LEAN HOGS:

The lean hog complex fell lower once again this afternoon as the market continues to be lacking fundamental support. June lean hogs closed $1.80 lower at $98.42, July lean hogs closed $1.70 lower at $102.95 and August lean hogs closed $1.72 lower at $103.97. Hog prices averaged $95.19 on the Daily Direct Afternoon Hog Report, with 7,451 head having traded. Pork cutouts totaled 388.74 loads with 353.94 loads of pork cuts and 34.80 loads of trim. Pork cutout values: down $1.46, $95.52. Tuesday's slaughter is estimated at 491,000 head -- 3,000 head more than a week ago and 8,000 head more than a year ago. The CME lean hog index 5/8/2026: down $0.38, $90.41.

Tuesday's WASDE report shared mixed news for the hog and pork markets of 2026. Pork production for 2026 was increased by 10 million pounds as production in the second half of the year is expected to be greater than what the industry has currently seen. The quarterly price projection for hogs was mixed as hogs in the second quarter of 2026 are now expected to average $71 (down $1.00 from last month); hogs in the third quarter are now expected to average $74 (down $1.00 from last month); and hogs in the fourth quarter are now anticipated to average $64 (down $1.00 from last month). Pork imports for 2026 fell by 12 million pounds but pork exports grew by 32 million pounds.

WEDENSDAY'S HOG CALL: Steady to somewhat higher. Packers were a tick more active in today's market, but still likely need more hogs.