Market Commentary

Live Cattle futures finished the day lower but well off of their lows as news of more plant closures hit the market and cash trade is slow to develop. Feeder Cattle futures pushed through overhead resistance yesterday but finished the week lower after a big recovery from the lows set a week ago. Lean Hog futures posted new lows for the move this morning but reversed course and finished the day higher. Corn futures traded to new contract lows this morning but finished the day higher despite crude oil trading sharply lower.

Live Cattle futures recovered nicely late in the day to finish above key chart support areas. Feeder Cattle futures tested both bottom side support and overhead resistance as the CME Feeder Cattle index continues to work higher. Lean Hog futures posted new lows for the move today and are now near contract lows. Corn futures could not hold the early gains from this morning and finished the day mixed.

Live Cattle futures finished the week slightly higher but well off of their highs for the day. Feeder Cattle futures traded nearly $23.000 off of their low’s from yesterday but finished nearly $5.000 off of the highs they set this morning. Lean Hogs finished lower each of the past two days as the complex failed at the 20-day MA again. Corn futures finished lower each day this week as the July contract lost nearly 30 cents with the funds continuing to exit their long positions.

Live Cattle futures traded lower the entire day as the Feeder Cattle futures weighed on the complex. Feeder Cattle futures also traded lower all day as Screwworm rumors circulate and Secretary Rollins again addressed the situation. Lean Hog futures began the day sharply lower but found support and finished the day higher as the cash fundamentals remain supported. Corn futures posted new lows for the move and traded to the lowest levels since February today as extended forecasts do not look threatening.

Live Cattle futures finished the week lower as cash trade has been slow to develop and is lower than a week ago. Feeder Cattle futures had another volatile week and could not fill the gap that was left last week. Lean Hog futures finished the week near their lows and failed to find buying as the managed money continues to exit the complex. The nearby Corn futures traded to the lowest level in nearly three months today as crude oil futures worked lower all week. Reminder: CME Live and Feeder Cattle limits change on Monday, June 1.

Live Cattle futures finished the day mixed after two-sided trade throughout the entire day. Feeder Cattle futures also traded on both sides of steady and continue to look for direction with a poor technical picture. The deferred Lean Hog futures have now finished lower eight days in a row as the managed money have become sellers of the contract. Corn futures traded lower the entire day and have returned to important technical support areas.

Live Cattle futures fended off the sharply lower Feeder Cattle market the last two days but still finished with significant losses on the week. Feeder Cattle futures traded to the lowest levels since March today after losing over $20.000/cwt the past two days. Lean Hog futures moved to the lowest levels since December as the cash and cutout markets remain stagnant. Corn futures finished the day slightly higher heading into the three-day weekend.

Live Cattle futures finished the day higher after boxed beef was significantly higher at mid-day. Feeder Cattle futures were the leader of the cattle complex and finished sharply higher after testing downside support lines this morning. Lean Hogs finished lower for the fourth day in a row and posted new lows for the move. Corn futures finished the day lower after opening the week sharply higher on optimism surrounding trade with China.

Cash cattle traded to new all-time highs this week while the futures market failed to move sharply higher with outside factors keeping the futures in check. Feeder Cattle futures turned in an extremely volatile week while the CME Feeder Cattle index has slipped lower. Lean Hog futures posted new lows for the move this week then found overhead resistance while the cash fundamentals remain solid. Corn futures finished sharply lower each of the final two days this week as news from China dominates the headlines.