June live cattle (LEM26) futures last Friday rose $0.15 to $249.30 and for the week were down $4.60. August feeder cattle (GFQ26) futures Friday lost $6.675 to $349.85 and for the week lost $11.60.
The steep downdraft in the feeder cattle futures market late last week, in which heavy profit taking and weak long liquidation were featured, also limited buying interest in live cattle futures. August feeders are now trending down on the daily bar chart, and combined with last Friday’s technically bearish weekly low close, will likely see follow-through selling pressure this week.
Cash cattle prices also slipped late last week. The USDA at midday Friday reported active cash cattle trading, with steers averaging $260.88 and heifers $260.85. The agency earlier last week reported that cash trading the week prior averaged $262.85.
Monthly USDA Cattle-on-Feed Report Leans Price-Bearish
The USDA last Friday afternoon reported cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.6 million head on May 1, 2026. The inventory was 2% above May 1, 2025, and slightly higher than market expectations. Placements in feedlots during April totaled 1.70 million head, 6% above 2025 and well above market expectations. Net placements were 1.65 million head. Marketings of fed cattle during April totaled 1.64 million head, 10% below 2025, in line with market expectations.
U.S. cattle inventories remain historically tight, supporting the recent record-cash trade despite weakness in futures. Beef production is lower for the year, and grilling season demand is ramping up.
News reports last week highlighted the behind-the-scenes jockeying that accompanied the recent White House decision to hold off on what had been widely discussed plans to issue an executive order temporarily reducing import tariffs on beef. POLITICO last week said a split over the plan highlights a dilemma facing President Donald Trump as he walks a tightrope – trying to balance consumer worries about rising grocery prices with his supporters in the U.S. cattle industry. The report said an unnamed senior White House official described the executive order as still a “work in progress.” Cattle producers are watching and waiting.
Lean Hog Bears in Firm Technical Control
June lean hog (HEM26) futures last Friday rose $0.625 to $95.75 and for the week were down $3.00. The lean hog futures market paused Friday, following last week’s steep downdraft that drove prices to a five-month low on Thursday. Bears are in firm technical control amid a price downtrend firmly in place on the daily bar chart.
The latest CME lean hog index is up 7 cents to $91.07. Today’s projected cash index price is down 19 cents to $90.88. The national direct five-day rolling average cash hog price quote for Friday was $93.57.
A seasonal increase in pork cutout value is likely as summer approaches, especially if consumers look to more economical pork options versus pricey beef at the grocery counter. This scenario could put a floor under lean hog futures in the near term.
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On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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