The JBS Strike Pauses — What It Means for Cattle Markets + Hogs Go Sideways

Why It Matters

The strike’s resumption eases cattle supply bottlenecks, while flat hog prices and firm grains keep producer margins and feed costs in focus, influencing protein pricing across the market.

Key Takeaways

• Cattle futures modestly green; cash market remains tight and overbought.
• JBS strike resumes in Greeley, adding ~3,000 daily slaughter capacity.
• Select beef prices exceed choice, indicating longer feeding and larger weights.
• Hog futures flat; open interest declining as funds unwind long positions.
• Grain markets stay firm amid Middle‑East tension and lingering inflation concerns.

Summary

The program dissected this week’s protein complex as the JBS strike in Greeley, Colorado briefly resumed, affecting cattle slaughter capacity while futures for cattle and hogs edged sideways.

Cattle futures closed modestly higher, but cash prices stayed tight, with only a single regional buyer at $250—record levels. The market remains overbought after a $20‑plus rally, and the unusual price spread showing select beef above choice signals longer feeding periods and larger weights. Hog futures were flat, with April contracts trading within a narrow 80‑cent range and open interest eroding as funds liquidated long positions.

Host Joe Korma highlighted that the strike adds roughly 3,000 heads of daily kill capacity, easing earlier concerns about supply constraints. He also noted the USDA’s WASDE forecast of lower red‑meat and poultry production for 2026, and pointed to grain markets staying firm amid Middle‑East tensions and persistent inflation, keeping feed costs elevated.

For producers, the resumed slaughter capacity restores leverage over packers, but tight cash markets and higher feed prices mean margins remain sensitive. Traders should monitor the select‑choice spread, hog fund positioning, and grain price dynamics as they could shape price direction in the coming weeks.

Original Description

Workers at JBS in Greeley, CO returned this week as negotiations continue. Did that have any impact on this week's cattle market? What about a slower week of cash trade, did that have an impact? We get into those topics along with the choice/select spread, a sideways hog market and more with Joe Kooima from Kooima Kooima Varilek on today's show. Find more online at https://www.kkvtrading.com.

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