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DTN Midday Livestock Comments 05/21 11:52
Livestock Contracts Continue to Bleed Lower Thursday
Some light cash cattle trade is developing in the South at $260 Thursday,
which is steady with last week's weighted average.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
It's another disappointing day for the livestock contracts as they are
trading steadily lower into Thursday's noon hour. There's been a light movement
in the cash market Thursday morning at $260, which is steady with last week's
weighted average. July corn is up 1/4 cent per bushel and July soybean meal is
steady. The Dow Jones Industrial Average is down 108.31 points and NASDAQ is
down 125.45 points.
LIVE CATTLE:
Wednesday afternoon the live cattle complex pulled back slightly, mildly
uncomfortable by the market's resistance. However, at Thursday's open, the
market pulled back abruptly, as if someone had accidently put their hand on a
red-hot burner, pulling back with sheer instinct and without hesitation. June
live cattle are down $2.82 at $250.45, August live cattle are down $4.50 at
$240.80 and October live cattle are down $4.25 at $232.45. Some light cash
cattle trade has been noted Thursday morning in the South at $260, which is
fully steady with last week's weighted average. There was a light movement on
Wednesday in the North at $415, which is $4.00 higher than last week's weighted
average, but no new Northern trade has developed Thursday.
Boxed beef prices are lower: choice down $0.77 ($392.85) and select down
$3.61 ($387.52) with a movement of 60 loads (40.62 loads of choice, 4.08 loads
of select, 8.47 loads of trim and 6.50 loads of ground beef).
FEEDER CATTLE:
Keeping in perfect alignment with the live cattle contracts, the feeder
cattle market is enduring a painful regression, where the vast majority of the
contracts are trading limit lower into Thursday's noon hour. August feeder
cattle are down $9.25 at $356.52, September feeders are down $9.25 at $353.37
and October feeders are down $9.25 at $349.62. More than anything, the
disconnect currently seen between the market's fundamentals and the futures
complex is nauseating. And, with the Cattle on Feed report expected to be
bearish as well, plenty of bearishness has seeped into the market.
LEAN HOGS:
The lean hog complex is also trading lower as the market simply can't summon
the support it needs. June lean hogs are down $1.60 at $95.67, July lean hogs
are down $1.85 at $100.12 and August lean hogs are down $1.62 at $100.20.
Unfortunately, this lower trend is likely to continue through the afternoon and
potentially into Friday as well.
The projected CME Lean Hog Index for 5/20/2026 is up $0.07 at $91.07 and the
actual index for 5/19/2026 is up $0.44 at $91.00. Hog prices are not available
on the Daily Direct Morning Hog Report because of confidentiality. However, we
can see that only 215 head have traded Thursday morning and the market's
five-day rolling average now sits at $93.10. Pork cutouts total 178.03 loads
with 161.00 loads of pork cuts and 17.03 loads of trim. Pork cutout values:
down $0.36, $95.11.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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