5/8/2026 Market Commentary

Live Cattle: Live Cattle futures plunged lower on Thursday but did recover late in the day. This morning, the futures opened sharply higher but again, returned to sharply lower territory for a majority of the day. Yesterday’s move lower came as much of a surprise as the cash market continued to work higher and there was no known negative news affecting the cattle market. Fund selling looks to be the culprit but the reason for the selling is unknown. Cash trade in all regions was higher this week as new all-time highs were set for the second week in a row. Trade in the North began on Thursday at 255 and was up to 260 by the end of the day and into Friday. The South traded from 255-258 but there were a few cattle that traded at 260 in Kansas. Boxed beef finished the week basically unchanged from last Friday. This morning, choice was quoted at $389.02, down $0.26 on the week and select was at $385.17 down $1.35 since last Friday. Trade data for the month of March was released this week and total exports from the U.S. were down 19% compared to a year ago while imports were up 19%. Imports from Brazil increased 26% and imports from Australia were up 23%. The U.S. continues to import beef at a cheaper cost than what beef prices are domestically in an effort to keep beef prices down and meat available to the consumer. Exports continue to suffer with the increased price of boxed beef as supplies remain tight.

Feeder Cattle: August Feeder Cattle traded an over $13.000/cwt range this week and nearly $9.000/cwt today alone. The futures opened the day sharply higher but only spent a few minutes at those levels before selling off and posting new lows for the week. The complex has quickly moved $15.000 off the contract highs that were set just one week ago. The CME Feeder Cattle index was quoted higher today and is currently at $374.83 through Thursday’s sales. Today’s CFTC Report showed the funds as buyer of 1,636 contracts for the week ending Tuesday, bringing their net long position to 18,725 contracts. The Corn market trading lower throughout the middle of the week could not bring support to the Feeder Cattle complex. Dryness in the West is beginning to become a big factor as many are having to sell cattle to reduce their herds in order to have enough grass and feed to get through the summer and fall.

Lean Hogs: Lean Hog futures posted new lows for the move all but one day this week, and have now traded to the lowest levels since the beginning of December. The managed money continues to decrease their long position and are now only long 51,082 contracts, just 1/3 of the total that they held a few months ago. The pork cutout continues to hold steady but has failed to sustain any moves higher. Yesterday, the pork cutout was quoted $0.50 higher at $95.60. The national cash average was lower this week and is currently at $90.70, down $1.94 on the week, and nearly $5 off the highs from a few days ago. Export data for March shows total shipments up 6% compared to last March and the yearly total up 3% compared to the first three months of 2025. Mexico has imported 8% more pork from the U.S. than a year ago while Japan’s imports from the U.S. are up 18%. Pork demand continues to remain strong both domestically and through exports, but the futures and cutout have not been able to hold gains throughout the year.

Corn: Corn futures finished the day higher after closing lower the three previous days. The July contract matched the high set back at the beginning of March this week and the futures lost nearly 25 cents from that point before finding support levels yesterday. The December contract settled above the $5 mark twice this week but could not hold that level at the end of the week. Export sales released yesterday showed another good week of Corn sales but less than the previous weeks. Mexico was on the books for some new crop purchases as their need for Corn for feed continues to increase. This week’s ethanol report showed daily production 8,000 barrels per day larger than a week ago. Ethanol stocks also increased by 139,000 barrels. The U.S. is currently on pace to fall short of the goal set by the USDA. Look for ethanol demand to be revised lower in coming reports. Overall, the Corn market had a good recovery from the lows set yesterday and traders will continue to monitor weather changes across the Corn Belt in the coming weeks.