Cattle, corn and soybeans are higher on Tuesday morning, with hogs lower.
Cattle Futures Make New Highs for the Move
Both live and feeder cattle futures are making more new highs for the move following up gains from yesterday. Brad Kooima with Kooima Kooima Varilek says the recent strength has been a combination of fund buying and higher cash trade on both fed and feeder cattle/calves.
Cash Higher Last Week and Again This Week?
Cash cattle trade was higher last week with most of the live business done in the $232 area in the North and Southern feeding areas. The five area weighted average steer was reported by USDA at $231.68, up $2.35 from the previous week. Kooima says there was even some whisper trade late last week at $235 and so he is predicting the cash market will clock in at $235 in the fed market this week.
Cash Feeders Still on Fire
The cash feeder market is still red hot as well according to Kooima. Sale barns have been reporting continued strong demand and prices and the feeder cattle cash index is projected to be up another $9 today. This will keep feeders as the leaders in the market.
Technically Will the Cattle Futures Fill Chart Gap Areas?
Live and feeder cattle futures had chart breakouts late last week. Kooima says live cattle had been sideways the last couple of weeks but have now broke above those areas and could go up and retest the chart gap areas. He predicts the same for feeder futures and if those areas are filled, the market technically will have all the ammunition it needs to make new contract and all-time highs again, beating out the October 2025 highs.
What Will it Take for Cattle Futures to Hit Record Highs in 2026?
Kooima says the cattle market isn’t even into the tightest numbers and predicts those will be coming in the next 60 to 90 days. So he is optimistic about the futures making all time highs in 2026, likely in the first quarter. What will it take to get to new record highs? Kooima cites the following combination.
1. Continued higher fed and feeder cattle cash trade
2. Appreciation in boxed beef values
3. Additional buying by funds and managed money traders
4. Avoidance of black swan events
Lean Hogs Pause
After making new highs for the move in nearby futures Monday and contract highs in the summer months, the lean hog market took a break to start Tuesday. Kooima says a combination of profit taking and hedge selling may be the reason. Funds have been buying hogs and pushing the market higher because he says the fundamentals don’t suggest this kind of rally, especially with futures at a premium to the cash index.
Corn and Soybeans Continue to Rally?
The grain futures were all higher on Monday and corn and soybeans are extending gains early Tuesday. Kooima says some of the buying was tied to portfolio reallocation by the fund traders. However, talk of Sinograin buying 10 to 14 cargoes of U.S. soybeans also drove the buying. USDA confirmed 12.3 million bu. of soybean sales to China this morning.
How much more upside is left in the grain market? Kooima says he thinks the correction in soybeans is limited and corn continues to just trade within its sideways range. Currently he doesn’t see anything to change that, especially with South America only showing limited weather problems in Argentina.
