5/26/2026 Market Commentary

Live Cattle: Live Cattle finished the day mixed with the nearby contracts finishing the day lower and the deferred contracts finishing slightly higher. The market shrugged off the slightly negative Cattle on Feed Report and pushed higher minutes after the open but could not hold all of those gains throughout the day. Given the current market situation, the June contract unexpectedly felt the most pressure today. The best way to describe it is that it felt like someone was long the June contract and needed to reduce their size of position. Friday’s Cattle on Feed Report showed the largest on feed numbers in the last 18 months along with the largest April placements number in the last three reports. A lot of this negative data was already in the market as the estimates heading into the report were expecting both more cattle on feed and large placements. Boxed beef was higher this morning on very small volume. Choice was up $1.98 to $392.25 and select was $4.22 higher at $389.22. The cash averages for negotiated trade last week were lower than the previous week in all regions, but the northern states saw more of a decline than the southern states. The futures market will continue to watch any developments at the Cargill plant in Ft. Morgan, Colorado this week as well as keeping an eye on any news from the White House surrounding beef.

Feeder Cattle: Feeder Cattle futures opened the day lower and held those lows into the final hour of trade before making a push lower late in the day. The futures finished the day mixed as volatility remains high and price swings are extreme. The August contract holds the bulk of the open interest within the complex and was the only contract to finish the day lower. The CME Feeder Cattle index was quoted $1.36 higher today at $371.49 through Monday’s sales. Friday’s Cattle on Feed Report showed an increase in placements compared to a year ago. Placements in the month of April were 89,000 head larger compared to a year ago. Kansas and Texas accounted for 45,000 head of this increase as the southern feeding region moves forward with the Mexican border closed.

Lean Hogs: Lean Hog futures posted their daily highs in the opening minutes this morning before eventually falling lower and closing the day negative for the eighth consecutive day. The deferred contracts have lost over $6.000/cwt over the course of lower closes and have taken out many major support areas in the process. All of the cash fundamental prices have worked lower this past week with the exception of the Lean Hog index which has gained just slightly. The national cash average is down $1.65 compared to a week ago and the pork cutout has lost $2.10. The pork cutout remains comfortable between the $95 level and the $100 mark. Friday’s Cold Storage Report showed total pork up 8.7% compared to a month ago but 4.5% less than last year. The hams, bellies, and loins were significantly higher than a month ago while the hams and picnics were the only categories that showed higher inventories compared to last year.

Corn: The nearby Corn futures spent the entire day lower and have returned to technical support areas. The crude oil market was lower the entire day as well, making it hard for the grain complex as a whole to find much support. Friday’s CFTC Report showed the managed money as small sellers of the Corn complex, selling 6,129 contracts, reducing their net long position to 293,354 contracts. This is still a relatively large position in recent history and is just 50,000 contracts from the high a few weeks ago. Export inspections for the week were again very good and is keeping the U.S. ahead of the pace needed to meet the current USDA export goal. Mexico and Japan led the list of destinations with South Korea also being a significant buyer. Traders will continue to watch weather as the next week to ten days shows dryness across the majority of the Corn Belt with above average temperatures.