GENERAL COMMENTS:
The livestock complex ended the day mixed as the cattle contracts charged higher following the New World screwworm announcement, but the lean hog contracts fell lower. Some light cash cattle trade developed in the South at mostly $256. July corn is down 7 cents per bushel and July soybean meal is down $7.10. The Dow Jones Industrial Average is up 874.86 points and the NASDAQ is down 23.02 points.
LIVE CATTLE:
Who would have ever thought that the day after the first case of New World screwworm was detected in the U.S. for the first time in 60 years, that would drive the feeder cattle contracts to close limit high? I think it caught everyone off guard Thursday morning when the market opened, and both the live cattle and feeder cattle contracts began to trade higher following the news that broke late Wednesday evening. But in the digitalized world that we live in, and the large control that algorithmic trading has over the marketplace, the market has truly become an anticipatory market where rumors and headlines drive trading decisions, and the facts are merely an afterthought.
And this isn't the first time the market has experienced this type of "sell the rumor, buy the fact" type of behavior, as just last month, ahead of the Cattle on Feed report, the market sank sharply lower in anticipation of higher placements. But when traders later had the report and were given the opportunity to trade its findings, traders pushed the complex higher and merely glanced at it as if it was already old news.
Let today's behavior in the marketplace be a lesson for us all -- in the fast-paced world that we live in, the market doesn't sit around to verify facts. It trades headlines, rumors and anything in between, and sometimes it elects to sort out the fine details as an afterthought.
June live cattle closed $2.55 higher at $249.17, August live cattle closed $3.67 higher at $241.52 and October live cattle closed $4.80 higher at $233.80. Some light cash cattle trade developed throughout the day in the South at $256 to $256.50, which is $0.50 to $1.00 lower than last week's weighted average. And with the movement that developed on Wednesday in the North, it's looking like the bulk of this week's cash cattle is done with.
Thursday's slaughter is estimated at 108,000 head -- 2,000 head less than a week ago and 12,000 head less than a year ago.
Boxed beef prices closed lower: choice down $3.20 ($392.66) and select down $1.39 ($383.04) with a movement of 128 loads (101.79 loads of choice, 7.01 loads of select, 6.41 loads of trim and 12.42 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that the bulk of the week's trade is done with, any more trade that does develop will likely hold steady with the week's trend.
FEEDER CATTLE:
And if you thought the live cattle contracts' upward swing following the New World screwworm announcement was crazy, that's nothing compared to what the feeder cattle contracts did. By Thursday's close, the feeder cattle contracts ran mostly $10.75 higher, meaning that by the day's close, most of the contracts had hit their daily trading limit. It's tough telling exactly why the contracts ran sharply higher: is it because the border will likely remain closed for the distant future? Or is it because traders were buying following the sell-off that the market had endured earlier? Regardless of the rhyme or reason, cattlemen were pleased to see the rally. August feeder cattle closed $10.75 higher at $353.37, September feeders closed $10.75 higher at $350.07 and October feeders closed $10.75 higher at $346.65. At the Winter Livestock Auction in Pratt, Kansas, compared to their last sale two weeks ago, feeder steers weighing 800 to 975 pounds traded $4.00 to $8.00 higher, with load lots trading as much as $15.00 higher. There weren't enough steers offered under 800 pounds for an accurate test. Slaughter cows and bulls traded steady. Feeder cattle supply over 600 pounds was 95%. The CME feeder cattle index 6/3/2026: down $4.93, $359.21.
LEAN HOGS:
With all the market's excitement moving to the cattle complex, the lean hog contracts closed lower. June lean hogs closed $0.75 lower at $95.30, July lean hogs closed $0.40 lower at $101.60 and August lean hogs closed $0.30 lower at $99.27. It didn't help matters, however, that pork cutouts softened as the day ended. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.30 with a weighted average price of $95.66 on 2,625 head. Pork cutouts totaled 222.73 loads with 189.87 loads of pork cuts and 32.86 loads of trim. Pork cutout values: down $0.38, $98.13. Thursday's slaughter is estimated at 481,000 head -- 5,000 head more than a week ago and 2,000 head more than a year ago. The CME lean hog index 6/2/2026: up $0.60, $92.25.
FRIDAY'S HOG CALL: Steady/somewhat lower. Packers rarely buy aggressively in the cash market on Friday, but with slaughter speeds being faster, they may have to.
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