Hogs
Price action: August lean hog futures fell 45 cents to $107.05 while nearby June futures climbed 87.5 cents to $100.85.
Fundamental analysis: Hog futures ended the day mixed, with nearby June futures being supported by continued cash market strength while deferred futures saw profit-taking. August futures had previously rallied over $7 in seven sessions, marking today’s session as little more than a corrective pullback. Cash fundamentals remain fully supportive, with pork cutout recently working back higher. After seeing some consolidation over the past week, cutout has climbed higher for two consecutive days, rising 87 cents to $107.49 at midsession today. Gains in bellies continue to lead the market higher with picnics seeing strong gains today as well. The CME lean hog index continues to climb higher as well, rising another 41 cents to $96.75 as of June 3. The preliminary calculation puts the index up another 82 cents to $97.57 tomorrow. That likely underpinned nearby June futures today, which showed relative strength over the rest of the hog complex.
Technical analysis: August lean hog futures made a fresh for-the-move high today before reversing lower and settling near session lows. Resistance stands at $107.50 then $108.00, though bulls are ultimately targeting a close above $110.00.Support lies at the psychological $105.00 mark then the May 16 high of $104.375 on continued profit-taking.
What to do: Get current with feed coverage.
Hedgers: You are carrying all production risk in the cash market.
Feed needs: You have all corn-for-feed and soybean meal needs covered in the cash market through July.
Cattle
Price action: August live cattle rose $4.475 to $216.825, near the daily high and set a contract high. Nearby June live cattle closed up $4.50 at $222.90 and hit a record high of $223.00. August feeder cattle rose $5.275 to $309.15, near the daily high and hit a contract and record high of $309.475.
Fundamental analysis: The cattle futures markets soared today as traders worked to narrow the futures’ discounts to the cash cattle market. Bullish cattle traders brushed aside general marketplace risk appetite that is still far from robust. Cash cattle started trading at higher prices in the Southern Plains on Wednesday. USDA today reported more active trade across the five-state region at around $227.50 for steers and heifers. Last week’s average cash cattle trade was reported by USDA at $229.94. The noon report today showed mixed boxed beef values, with Choice grade up $2.39 to $367.55, while Select grade fell 74 cents to $355.98. Movement at midday was 64 loads. The Choice-Select spread is currently $11.57.
USDA this morning reported U.S. beef export sales of 9,000 MT for 2025 during the week ended May 29, down 39% from the previous week and down 27% from the four-week average.
Technical analysis: Live and feeder cattle futures bulls have the solid overall near-term technical advantage. The next upside price objective for the live cattle bulls is to close August futures above resistance at $220.00. The next downside technical objective for the bears is closing prices below solid technical support at $210.00. First resistance is seen at $217.50 and then at $219.00. First support is seen at $215.00 and then at today’s low of $213.05.
The next upside price objective for the feeder bulls is to close August futures prices above technical resistance at $315.00. The next downside price objective for the bears is to close prices below solid technical support at $300.00. First resistance is seen at $310.00 and then at $312.00. First support is seen at $307.00 and then at today’s low of $305.00.
What to do: Get current with feed coverage. Carry all production risk in the cash market for now.
Hedgers: Carry all production risk in the cash market for now.
Feed needs: You have all corn-for-feed and soybean meal needs covered in the cash market through July.