6/18/2026 Market Commentary

Live Cattle: Live Cattle futures finished the day lower ahead of today’s Cattle on Feed Report and the long weekend. The August contract gained $8.025 the first two days of the week but erased over $2.500/cwt to end the week. Cash trade has been non-existent up to this point in the week and with no markets tomorrow, looks to be a quiet week in the country. There have been no bids to speak of for the feedlots to contemplate and most feedlots are hoping for a 260 trade this week. Boxed beef worked lower near the end of the week after testing the $400 level in the middle of the week. This morning, choice was quoted $1.23 lower at $393.27 and select was down $2.28 to $374.98. The choice/select spread has also narrowed a touch after moving to multi-month highs. Today’s Cattle on Feed Report showed 2% more cattle on feed on June 1 in the U.S. compared to last year. Very rarely does the industry see on-feed totals grow throughout the first six months of the year, but the total inventory number has been larger month over month in every report in 2026 due in part to feedlots making cattle bigger. Fat cattle marketed in the month of May fell 12% compared to last year which aligns with the kill cuts we have seen from the packer level.

Feeder Cattle: Feeder Cattle futures posted new highs for the move today but finished the day slightly lower. Cash Feeder Cattle continue to sell very well and the futures are trying to align themselves with the higher cash market and lower Corn market. The CME Feeder Cattle index was quoted $3.04 higher today at $367.06. Today’s Cattle on Feed Report showed placements for the month of May down 10% compared to a year ago. Placements in the state of Texas for the month were down 17% compared to a year ago which is 70,000 head. Cattle placed in Nebraska feed yards were also down 17% while Kansas saw an 11% decrease. Placements is Iowa were up 4% compared to last year. Surprisingly, the Feeder Cattle complex has not seen a big increase in open interest with this move higher in the futures market like one would expect. This week’s CFTC Report is delayed due to the holiday tomorrow, but it will be interesting to see if the funds added any substantial length within the complex.

Lean Hogs: Following suit of last week with the Lean Hog complex, July Lean Hogs opened the week at 97.450 and continued their downward trend for the remainder of the week, finishing at 95.025 with no markets Friday due to Juneteenth. The deferred months seemed to show some steadiness, remaining relatively unchanged from the start of the week with October closing at 81.325. The Lean Hog index held above its 20-day MA at 92.425 despite losing 0.325 for the week. Demand continues to be a concern with the pork cutout closing out the week at $93.71, which is down $3.68 from last Friday. Bellies fell $9.03 on the day, which is down $4.08 on the five-day average.

Corn: For the week, corn futures gained 4 3/4 cents and energy markets finished mixed. President Trump announced that the U.S. and Iran had reached a preliminary 60-day peace agreement, with energy products beginning to move through the Strait of Hormuz. The news helped ease concerns in the energy markets while traders also position themselves ahead of the three-day weekend and the upcoming Acreage Report at the end of the month. Crop conditions remain favorable across much of the Corn Belt, and Monday’s Crop Progress report continues to support expectations for another large U.S. corn and soybean crop. Demand remains good, with old-crop corn export sales staying strong and soybean bookings exceeding expectations. The week also included a flash sale of corn to Mexico and two soybean flash sales, including one to China.