Live Cattle Prices Advance Across Multiple Futures Contracts

Live cattle prices demonstrated strength in recent trading sessions, with futures contracts advancing across the board. The market showed resilience as live cattle prices moved higher, supported by a mix of cash market activity and wholesale price momentum that kept sentiment constructive throughout the period.

Strength in Live Cattle Futures Contracts

Live cattle futures contracts recorded gains ranging from 17 cents to 72 cents during the most recent trading session, with the upward momentum suggesting sustained buyer interest. The Feb 26 contract closed at $233.10, up 72.5 cents, while the Apr 26 contract settled at $234.95, gaining 37.5 cents. Jun 26 live cattle prices finished at $230.875, advancing 27.5 cents as participants positioned themselves ahead of upcoming fundamentals.

Despite the positive price action, trading volume in the cash market remained thin, with only a handful of cattle exchanging hands at $232 thus far. Competing bids are currently positioned at $233, indicating potential price floor support. The Fed Cattle Exchange online auction showed no executed sales on 1,228 head offered, though bids were submitted at $230 live and $355 in the beef category, illustrating the cautious approach many buyers are maintaining.

Feeder Cattle and Wholesale Price Momentum

Feeder cattle futures displayed even more pronounced strength, with most contracts posting gains ranging from 45 cents to $1.70. The Jan 26 Feeder Cattle contract advanced 60 cents to $363.225, the Mar 26 contract surged $1.70 to $359.375, and Apr 26 rose $1.675 to $358.125. This performance stands in contrast to the CME Feeder Cattle Index, which declined $0.27 to $367.41, suggesting selective strength in specific contract months.

Wholesale beef prices aligned with the broader positive trend, with the USDA Boxed Beef report showing elevated prices across most categories. The Choice/Select spread tightened to $3.66, while Choice boxes jumped $1.35 to $366.11 and Select moved $2.61 higher to $362.45. This combination of rising wholesale prices and narrower premiums points to solid demand structure supporting live cattle prices at multiple tiers of the supply chain.

Slaughter Activity Trails Year-Over-Year Comparisons

Federal cattle slaughter estimates for the most recent session reached 114,000 head, contributing to a weekly total of 333,000. This volume ran 19,000 head below the prior week and 24,949 head lighter than the same period last year, a fact that could provide ongoing support to live cattle prices by constraining supply expansion. The reduced throughput relative to historical norms continues to be a factor market participants monitor closely when assessing the strength of live cattle prices and longer-term supply-demand dynamics.

The combination of rising futures prices, modest cash market activity, and wholesale price momentum suggests that live cattle prices remain supported by balanced fundamentals, even as traders await additional catalysts to drive the next phase of market movement.