Cattle Futures Show Strong Momentum Ahead of Key USDA Report

The livestock futures markets are displaying impressive strength this week, with cattle futures climbing significantly as traders brace for crucial supply data. Live cattle futures contracts have surged between $2.17 and $2.70, while feeder cattle futures are posting gains of $5.10 to $6.10, signaling robust buyer interest across multiple contract months. This upward momentum reflects growing market confidence even as participants await the December Cattle on Feed report release.

Live Cattle Futures Surge on Steady Cash Activity

Cash cattle trading got underway Thursday with select sales recorded at $228 across multiple regions, with some transactions reaching $356-358 per hundredweight. Friday’s Fed Cattle Exchange online auction listed 1,708 head but saw no closed transactions, with bids hovering at $227-228. This price action represents meaningful gains for live cattle futures traders, who are watching both nearby and deferred contracts carefully. December futures settled at $230.675 (up $2.25), February at $231.075 (up $2.675), and April at $230.325 (up $2.175), demonstrating consistent strength across the contract curve.

Feeder Cattle Futures Extend Rally as Index Strength Continues

Feeder cattle futures are capturing investor attention with substantial gains, positioning these contracts among the week’s best performers. The CME feeder cattle index from mid-December advanced 26 cents to $350.05, underscoring underlying strength in the young cattle market. January feeder futures climbed to $346.375 (up $6.10), March reached $340.10 (up $5.50), and April settled at $338.275 (up $5.10). These across-the-board advances suggest traders are accumulating positions ahead of today’s major cattle report release.

Market Awaits December On-Feed Report with Key Expectations

Traders monitoring cattle futures markets are positioning ahead of this afternoon’s December Cattle on Feed report. Market participants expect November cattle placements to decline 8% year-over-year, with marketings projected to fall 11.3% compared to the prior year. December month-end on-feed inventory is anticipated to be 1.6% lower than last year’s levels. These expected declines could support the recent rally in both live and feeder cattle futures, as tighter supply dynamics would justify higher price levels.

Boxed Beef Prices Mixed Despite Cattle Futures Strength

USDA wholesale boxed beef pricing presented a more mixed picture Friday morning despite the strength in cattle futures. Choice boxes advanced $3.61 to $360.89, while Select boxes declined $3.57 to $347.54, causing the Choice/Select spread to widen to $13.35. USDA federally inspected cattle slaughter was estimated at 123,000 head Thursday, with the weekly total reaching 472,000 head—down 12,000 head from the prior week and 11,643 head below the same week last year. These dynamics highlight the interplay between supply management and market pricing across the cattle complex.

For investors tracking cattle futures and commodity market trends, platforms offering comprehensive market analysis continue to provide essential data for position management and trading decisions in these volatile livestock markets.