DTN Midday Livestock Comments          05/21 11:52

   Livestock Contracts Continue to Bleed Lower Thursday

   Some light cash cattle trade is developing in the South at $260 Thursday, 
which is steady with last week's weighted average. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   It's another disappointing day for the livestock contracts as they are 
trading steadily lower into Thursday's noon hour. There's been a light movement 
in the cash market Thursday morning at $260, which is steady with last week's 
weighted average. July corn is up 1/4 cent per bushel and July soybean meal is 
steady. The Dow Jones Industrial Average is down 108.31 points and NASDAQ is 
down 125.45 points.

LIVE CATTLE:

   Wednesday afternoon the live cattle complex pulled back slightly, mildly 
uncomfortable by the market's resistance. However, at Thursday's open, the 
market pulled back abruptly, as if someone had accidently put their hand on a 
red-hot burner, pulling back with sheer instinct and without hesitation. June 
live cattle are down $2.82 at $250.45, August live cattle are down $4.50 at 
$240.80 and October live cattle are down $4.25 at $232.45. Some light cash 
cattle trade has been noted Thursday morning in the South at $260, which is 
fully steady with last week's weighted average. There was a light movement on 
Wednesday in the North at $415, which is $4.00 higher than last week's weighted 
average, but no new Northern trade has developed Thursday.

   Boxed beef prices are lower: choice down $0.77 ($392.85) and select down 
$3.61 ($387.52) with a movement of 60 loads (40.62 loads of choice, 4.08 loads 
of select, 8.47 loads of trim and 6.50 loads of ground beef).

FEEDER CATTLE:

   Keeping in perfect alignment with the live cattle contracts, the feeder 
cattle market is enduring a painful regression, where the vast majority of the 
contracts are trading limit lower into Thursday's noon hour. August feeder 
cattle are down $9.25 at $356.52, September feeders are down $9.25 at $353.37 
and October feeders are down $9.25 at $349.62. More than anything, the 
disconnect currently seen between the market's fundamentals and the futures 
complex is nauseating. And, with the Cattle on Feed report expected to be 
bearish as well, plenty of bearishness has seeped into the market.

LEAN HOGS:

   The lean hog complex is also trading lower as the market simply can't summon 
the support it needs. June lean hogs are down $1.60 at $95.67, July lean hogs 
are down $1.85 at $100.12 and August lean hogs are down $1.62 at $100.20. 
Unfortunately, this lower trend is likely to continue through the afternoon and 
potentially into Friday as well.

   The projected CME Lean Hog Index for 5/20/2026 is up $0.07 at $91.07 and the 
actual index for 5/19/2026 is up $0.44 at $91.00. Hog prices are not available 
on the Daily Direct Morning Hog Report because of confidentiality. However, we 
can see that only 215 head have traded Thursday morning and the market's 
five-day rolling average now sits at $93.10. Pork cutouts total 178.03 loads 
with 161.00 loads of pork cuts and 17.03 loads of trim. Pork cutout values: 
down $0.36, $95.11.

   ShayLe Stewart can be reached shayle.stewart@dtn.com




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