Commentary

Live Cattle surged higher on Tuesday on fund buying. The August contract posted a new contract and all-time high as expectations for cash this week are higher. Feeder Cattle also posted new contract and all-time highs as the futures continue to follow the record cash market. Lean Hogs have strung together five higher days in a row on technical buying and good pork demand. Corn futures have failed to find support and have posted new contract lows both days this week as we are moving closer to harvesting a monster crop.

Live Cattle futures posted new all-time highs this week before falling lower on Thursday. Cash cattle traded higher again this week and helped the futures rebound to close the week. Feeder Cattle also corrected lower but the CME Feeder Cattle index posted a new record high on Friday. Lean Hogs recovered nicely on Friday despite the pork cutout moving lower. Corn continues to fail to find any traction as traders continue to price in a massive U.S. corn crop.

The Live Cattle complex posted new contract and all-time highs today as the futures market remains discounted to the cash market. Feeder Cattle also posted new all-time highs as climbing cash prices and the lower corn market have given the funds a reason to add to their long position. Lean hogs traded sharply lower today on technical selling and a stagnant pork cutout. Corn continued its lower trade as U.S. Corn production looks to be large.

Live Cattle futures set new contract highs this week while the cash market was steady with a week ago. Feeder Cattle posted a new all-time high as feed costs continue to decrease and inventory of available Feeder Cattle gets tighter. Lean Hogs traded sideways this week as the pork cutout continues to work higher. Corn finished the week lower as the forecasts show continued chances for rain over the next few weeks.

Live Cattle finished the day mixed as cash trade has yet to be established for the week and slaughter numbers remain small. Feeder Cattle posted new contract highs all the way through the complex as the CME Feeder Cattle index set a new record high after Friday’s sales. The pork cutout has gained nearly $6 over the last week and has moved the futures market back higher. Corn has erased half of last week’s gains as U.S. production looks to be large.

Live Cattle finished the week slightly lower after a good recovery in the middle of the week. Cash trade was steady to a dollar better throughout all regions. Feeder Cattle failed to post a new contract high this week as the CME Feeder Cattle index saw limited movement. Lean Hogs finished the week on a positive note as the pork cutout has begun to work higher. Corn futures also finished the week higher as warmer weather has entered the forecast.

Live Cattle futures have traded both directions to start the week after last week’s better than expected cash trade. Feeder Cattle continue to follow the record cash prices higher as feed costs continue to remain low. Lean Hogs have erased nearly $10 over the course of the last month and have failed to hold some important technical areas. Corn posted a new contract low to begin the week but have recovered over 10 cents the past two days.

Cash Cattle traded sharply higher this week and pulled the futures to new contract highs to end the week. Feeder cattle found strong support on the USDA again closing the Mexican border for Feeder Cattle imports. Lean Hogs continue to grind lower despite the better cash and cutout markets this week. Corn futures posted new contract lows to end the week as the USDA did not change yield in the monthly WASDE report and weather forecasts continue to look favorable.

Live Cattle posted new contract highs on Tuesday as optimism surrounding this week’s cash market continues to grow. Feeder Cattle futures set new record highs as feed costs continue to work lower. Lean Hogs have settled into a sideways range as the pork cutout has drifted lower. Corn posted new contract lows as weather looks beneficial to U.S. production, and no positive developments with trade partners have surfaced.

Markets closed for the 4th of July with Live Cattle and Feeder Cattle finishing the week on a positive note as the cash markets performed better than initial expectations. Lean Hogs finished lower three of the four days this week due to the pork cutout losing $13 over the last seven days. Corn reversed direction middle of the week and bounced off of contract lows as trade deals present optimism for U.S. corn demand.