Money Flows Against Cattle, Hogs and Commodities to End the Month

Why It Matters

The moves signal near-term downside risk for livestock prices and margin pressure for producers and processors, while drought, disease risks and tepid consumer demand could shift supply timing and pricing into late summer and fall. Market volatility increases planning uncertainty for hedgers and buyers across the meat supply chain.

Summary

Livestock futures finished May under broad-based selling as funds engaged in end-of-month profit-taking, leaving cattle and feeder contracts under particular pressure and hogs trading sharply lower. Traders cited a bearish on‑feed report and drought-driven herd placements that swollen supplies, while rumors of screwworm near the Texas border and weak technical charts added to selling in the cattle complex. Hog fundamentals showed steady production with heavier weights but sluggish domestic demand despite some export support to Mexico, and ongoing animal disease concerns could push tighter supplies later in the year. Energy and grain weakness also weighed on the complex as traders parsed geopolitical headlines and macroeconomic softness.

Original Description

It was a tough end of the week and month in the livestock trade on Friday as we saw broad based selling in cattle and hogs futures. Cash trade for cattle was also a tad weaker on the week and commodities (except soybean oil) were generally in the red as well. Joe Kooima with Kooima Kooima Varilek joins us to share perspective on the livestock and grain markets to end the week. Find more at https://www.kkvtrading.com.

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