6/12/2026 Market Commentary

Live Cattle: Live Cattle futures finished the week under pressure after moving higher and pushing through overhead resistance on Thursday. The August contract added $5.950/cwt the middle three days of the week but fell victim to end of the week profit taking today along with news that JBS will be closing a slaughter facility in Pennsylvania as well as a value added facility in Tennessee. Boxed beef was lower this week with select losing significantly compared to choice. For the week, choice was down $0.06 to $393.11 while select was $12.88 lower to $373.98. The choice/select spread has now widened to $19.13. More new crop calves are being slaughtered which will lower the prime and choice percentages, decreasing supply of those cuts and increasing the supply of select. Official data for the past few weeks has not been released yet but will be something to watch over the coming weeks. Cash trade has been very slow to develop this week with packers trying to buy cattle sharply lower than a week ago but have not had any success. There has been very limited trade in all regions at 255 with the South trading a few at 256.

Feeder Cattle: At yesterday’s high, Feeder Cattle futures had gained nearly $25.000/cwt from the lows set early last Thursday and pushed through some key technical areas above the market. Yesterday, the August contract traded through the highs set on Friday and Monday and pushed through the 100-day MA. Intraday volatility remains high with the tightest daily range for the week being $4.450/cwt on Wednesday. The CME Feeder Cattle index has been quoted higher four of the last six days and is currently $8.80 above the low set last Thursday. Today, the index was quoted at $368.01 which was $2.09 lower through Thursday’s sales. Today’s CFTC Report showed the managed money as buyers of just 77 contracts, increasing their net long position to 10,920 contracts.

Lean Hogs: Lean Hog futures continue to work lower and posted new lows for the move on Wednesday in the nearby contracts while the deferred contracts posted new lows today. These lows tested the contract lows set at the beginning of November. The futures have recovered slightly and finished the day higher but well off of the daily highs. After trading through the $100 level last week, the pork cutout has lost $6.71 over the course of this week and is now more than $20 below the same time a year ago. The national cash average is up $1.60 this week to $97.26 and the Iowa/Southern Minnesota average gained $1.77. Supplies of ready hogs are extremely tight right now and the packers are having to compete to fill open kill space. Today’s CFTC Report showed the managed money as sellers of 7,150 contracts for the week ending on Tuesday. Their net short position is currently 13,701 contracts and just 17,400 above their all-time record short position.

Corn: Corn futures posted new contract lows across the complex early in the session but recovered to finish just fractionally higher. Yesterday’s WASDE Report did not give the market any bullish catalysts and price action into the end of the day was not encouraging. Ethanol demand was decreased by 25 million bushels which is no surprise as the U.S. was currently behind the pace needed to meet the old USDA goal. Export demand was increased 25 million bushels offsetting the decrease in ethanol demand. The report did little to move the needle for U.S. carryout. Production was raised in India and South America which added bushels to the world carryout. Yesterday’s export sales report showed good volume of new crop sales which is encouraging for future corn demand. Favorable weather has continued selling by the managed money within the Corn complex. As we get to the end of June, the USDA will update with current production estimates for 2026 and in turn, what that means for the U.S. carryout heading into 2027.