Cattle futures opened higher Monday, extending a recovery that began late last week following technical reversals, while hogs traded mixed and grain markets showed varied performance—corn and wheat higher, soybeans slightly weaker.
Cattle Futures Rebound After Bearish Reversal
Cattle futures are in their second session of rebound following key weekly chart reversals that hinted at a possible market top, according to Brad Kooima of Kooima Kooima Varilek. The focus now is on whether futures can hold last week’s lows. For the August live cattle contract, that support sits near $205.40. A break below that level could prompt additional long liquidation by funds. Conversely, a close above $208.50 is needed to negate the bearish signal.
Cash Cattle Surge for Fifth Straight Week
Cash cattle prices reached record highs for the fifth consecutive week. Most Northern transactions were reported around $228 per hundredweight—$2 higher than the previous week—with some trades reaching $229 and $230. Dressed weights ranged from $358 to $360.
“In Iowa, we often see the start and end of the cash cattle market due to our heavy negotiation volume,” Kooima noted.
In the Southern Plains, cash cattle traded mostly between $218 and $220. Kooima expects steady trade this week despite extremely tight show lists, as packers prepare for a short kill week ahead of Memorial Day.
Weekly slaughter totaled 566,000 head. Kooima notes it’s unclear whether the reduced number is due to packers intentionally trimming kills or an overall supply shortage. One encouraging sign is the drop in cattle weights, which may help lower production.
For the week ending May 3, average dressed steer weights declined to 938 pounds, down 8 pounds from the prior week but still 15 pounds above last year. The year-over-year weight spread narrowed by 11 pounds.
Lean Hog Futures Mixed on Profit-Taking
Lean hog futures opened mixed, with nearby contracts facing selling pressure after last week’s gains. Traders cited premium pricing relative to the lean hog index and technical resistance as reasons for the pullback. Nonetheless, deferred contracts are firming on concerns over rising disease pressure in hog herds.
Corn Attempts Recovery, Wheat Leads Gains
Corn futures sought to rebound Monday, following strength in wheat. However, the market remains under pressure after a weak performance last week that saw new lows in the December contract. Despite a bullish May WASDE report, corn was weighed down by favorable planting weather and aggressive fund selling. Speculators are now net short nearly 85,000 contracts.
Soybeans Edge Lower as Bean Oil Faces Pressure
Soybeans traded slightly lower to start the week, closely tracking movement in the bean oil market. While bean oil held key technical support and bounced on Friday, fears over potential EPA disappointment regarding 2026 biofuel blending mandates are causing concern.
On a brighter note, new-crop November soybean futures posted a weekly gain, buoyed by lower acreage estimates and a 295 million bushel ending stocks figure from the May WASDE.
