For those interested I hold a weekly livestock webinar on Tuesdays. My next webinar will be Tuesday, June 02, 2026, at 3:15 pm. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
Cattle futures Fell on Friday with Feeder Cattle taking the brunt of the selloff. Traders continue to keep futures prices at extreme discounts to the cash markets as cutout prices have not worked higher as traders expected. Feeble increases in the cutout have been met with lower movement and pullbacks in the cutout. This has kept the choice cutout in the mid to low 390’s and doubts that it could break above the 400.00 level. This has traders thinking the packer will be unwilling to bid up cash prices to buy product in an attempt to limit losses. They continue to keep slaughter levels at reduced levels from last year’s low levels in an attempt to raise cutout prices but have not been able to get the cutout consistently moving higher. The cash market has been extremely quiet this week with trades light as with June coming up, they should be able to draw on contracted cattle next week to slaughter. It seems weaker Crude Oil and RBOB futures haven’t helped quell trader fears of demand decline for beef from consumers even as the export report that came out on Friday showed a big jump in exports and there hasn’t been anything that I have seen that shows consumer demand falling. But with gas prices dipping and not crashing has kept trader enthusiasm for cattle at a minimum. We still have premium holidays coming up and we could possibly cutouts move towards the 4-buck mark if crude and gas come down faster. This would give traders confidence that the consumer will keep on buying beef. But, with so many variable affecting gas prices(the Iranian conflict and the resulting limited movement through the Strait of Hormuz) that is easier said than done. It is a lack of confidence that the consumer can continue to eat beef at these price levels that is limiting trader enthusiasm. Even as the consumer has repeatedly shown its willingness to buy beef at these prices. So far, the consumer has shown retail prices haven’t limited their desire for beef, but we are entering the period where high gas prices could have put a dent in the consumer pocketbook. We’ll see!… Friday marked the end of the month and traders showed a lack of confidence in the cattle markets, taking price down to the low end of their recent trading ranges. August Feeder Cattle opened higher and traded to its high at 354.70. This tested resistance at 354.55 and it turned lower and blew through the flattening 200-DMA now at 353.775, taking out the key level at 350.20 while crashing to the low at 346.50. Price bounced off the low and then drifted the rest of the session to close near the low at 348.425. If price can hold settlement, it could test resistance at 350.20. Resistance then comes in at the 200-DMA. A failure from the low could see price test support at 344.675. Support then comes in at 341.05. August Live Cattle opened higher and traded to the high at 241.925. This tested resistance at the declining 8-DMA now at 241.75 and the key level at 242.05. Bears took over and pressured price, taking it through support at the rising 100-DMA now at 241.10 to the low at 238.60. The selling stalled just above support at 238.125 and the market was able to bounce and retest the 100-DMA but it failed and price drifted lower into the close to settle at239.05. If cattle can hold settlement, it could retest resistance at the 100-DMA and then 242.05. A failure from settlement could see price test support at 238.125 and then the rising 200-DMA now at 236.10. Support is next at 235.625.
The Feeder Cattle Index released Friday surged and is at 373.04 as of 05/28/2026 settlement.
Boxed beef cutouts were lower as choice cutouts decreased 0.85 to 391.47 and select decreased 2.40 to 383.18. The choice/ select spread narrowed and is at 8.29 and the load count was 83.
Friday’s estimated slaughter is 105,000, which is above last week’s 99,000 and below last year’s 118,245. Saturday slaughter is expected to be 14,000, which is above last week’s 6,000 and last year’s 5,294. The estimated slaughter for the week (so far) is 448,000, which is below last week’s 532,000 and last year’s 487,605.
The USDA report LM_Ct131 states: So far for Friday, negotiated cash trade has been light on moderate demand in Nebraska. Compared to last week, early live purchases have been 3.00-10.00 lower at 255.00 and early dressed purchases have been 3.00-5.00 lower at 405.00. Negotiated cash trade has been limited on moderate demand in the Texas Panhandle and the Western Cornbelt. There have been a few early live purchases at 256.00 in the Texas Panhandle, but not enough for an adequate market test. The last established market in the Texas Panhandle was last week with live purchases at 260.00. In the Western Cornbelt, there have been a few early live purchases ranging from 255.00-258.00 and a few early dressed purchases at 405.00, but not enough for an adequate market test. The last established market in the Western Cornbelt was last week with live purchases from 258.00-265.00, mostly 260.00, and dressed purchases on a light test from 405.00-415.00, mostly 410.00. Negotiated cash trade has been mostly inactive on moderate demand in Kansas. The last established market in Kansas was last week with live purchases from 259.00-260.00, mostly 260.00.
The USDA is indicating cash trades for live cattle from 254.00 – 258.00 and at 405.00 on a dressed basis (so far) for the week.
**Call me for a free consultation for a marketing plan regarding your livestock needs.**
Ben DiCostanzo
Senior Livestock Analyst
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall not be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.