Grains closed mostly higher while cattle and hog futures eased after strong recent gains. The USDA-reported average steer price hit a record, with the national average at $255.02 steer, and traders reacted to profit-taking and technical selling in the live and feeder cattle pits. Follow-through selling pushed both live and feeder contracts lower on heavy volume after setting fresh highs earlier in the week.
June live cattle and August feeders registered key reversals that fit a textbook technical top, according to Brad Kooima of Kooima Kooima Varilek. He pointed to the reversal occurring at an all-time high, the heavy volume trade — about 86,000 contracts — and an increase in open interest as classic signals. Despite the drop, Kooima noted the market held technically important support with June live cattle staying above the 50- and 20-day moving averages.
Fundamentals also weighed on the market after last week’s jump in cash prices. Southern cash deals ran mostly $244 to $256 live and Northern trade was about $255 to $258 live and near $400 dressed, levels that will be hard to repeat. Packers moved aggressively earlier in the week to secure inventory and trimmed slaughter schedules to protect margins, and USDA Secretary Brooke Rollins’ comments on a Department of Justice probe of the packing sector added uncertainty that pressured futures and spooked funds.
Livestock pressures
Lean hog futures slipped further amid fund liquidation and technical selling after a pseudorabies detection in Iowa briefly rattled markets. Iowa officials described the finding as an isolated incident tied to a small group of boars brought in from out of state and said testing and protocols were in place, but the market remains sensitive because sourcing feeder pigs is tight. Traders pointed to high replacement values — roughly $100 for an isowean and about $150 for a 40-pound pig — as evidence of constrained supply.
Soybeans drove much of the grain complex higher, with both old- and new-crop contracts posting fresh highs. Bean oil continues to chase higher crude prices and the market is building optimism ahead of a China trade summit next week, though Kooima urged caution about relying on firm commitments. He said the breakout projects through prior resistance and could push July bean values toward new levels, including a move to July soy near $13, while November soy could test the $12.40–$12.50 area.
Grain specifics
Corn joined the rally, with funds adding more than 80,000 contracts and pushing July corn through the $4.85–$4.87 pivot area. December corn closed above $5, marking new highs for the move and drawing attention to higher targets around $5.20 and $5.45; Kooima said he’s inclined to sell into the rally. Traders continue to watch planting weather, potential acreage shifts and fertilizer availability, and whether China will become a buyer at the upcoming summit.
Kooima recommended producers consider marketing some November soybeans in the $12.40 to $12.50 range.
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