Feeder Cattle Futures Face Selling Pressure Amid Broader Cattle Market Weakness

The cattle complex declined sharply in recent trading, with both live cattle and feeder cattle futures contracts ending the session significantly lower. The weakness reflected broader market pressures affecting livestock commodities, as traders reassessed fundamentals across the sector.

Live and Feeder Cattle Contracts Post Steep Declines

Live cattle futures contracts weakened substantially, with losses ranging from 35 to 60 cents across different expiration months. The front-month February contract closed at $235.60, down 42.5 cents, while April settled at $237.40, declining 60 cents. June live cattle futures finished at $233.25, off 37.5 cents.

Feeder cattle futures mirrored the downside momentum, with most contracts posting declines of 50 to 60 cents. However, the near-term January feeder cattle futures contract bucked the trend, gaining 15 cents to close at $366.85. The March and April contracts weakened, with March down 60 cents at $362.00 and April declining 55 cents to $360.65.

The CME Feeder Cattle Index added $1.16 to $364.73, suggesting modest support despite the contract selloff. Meanwhile, cash market trade remained relatively quiet, with live cattle holding in the $233 to $236.50 range and dressed cattle hovering near $370.

Boxed Beef Prices Slide Lower in Latest Wholesale Report

The USDA’s wholesale boxed beef pricing showed weakness across the board. The Choice and Select spread expanded to $2.92, indicating divergence between premium and standard grades. Choice boxes declined 79 cents to $368.11, while Select grades fell $1.93 to $365.19, reflecting reduced demand pressure on both categories.

Cattle Slaughter Volumes Trail Year-over-Year Comparisons

USDA federally inspected cattle slaughter for the day totaled 112,000 head, with the weekly cumulative reaching 212,000 head. This represented a 7,000 head decline from the previous week and fell 24,878 head short of the corresponding week one year prior, suggesting tighter supply dynamics entering the period.

Key Feeder Cattle Futures Contract Performance

The weakness in feeder cattle futures highlighted the challenges facing the livestock sector, with technical selling appearing to outweigh any supportive supply-side signals. Traders closely monitored the divergence between contract performance and underlying cash market conditions, as feeder cattle futures remained vulnerable to further downside pressure without a meaningful shift in market sentiment.