Live cattle futures are broadly declining, with contracts down 72 cents to $1.40, reflecting a wider market softening also seen in feeder cattle futures and a $2 decrease in cash activity last week. This downward trend is further evidenced by lower USDA Wholesale Boxed Beef prices, with Choice boxes down $2.70 and Select $2.86, and significant price drops observed at feeder cattle auctions. While Monday's cattle slaughter increased week-over-week, it remained substantially below the prior year's levels, indicating continued pressure on livestock valuations.
The cattle market is exhibiting broad-based weakness, as indicated by negative price action across multiple segments. Live cattle futures are declining by as much as $1.40, mirrored by softening in feeder cattle futures, which are down up to $1.00. This bearish sentiment in the derivatives market is corroborated by the physical market, where last week's cash activity fell by $2 to $240 and the CME Feeder Cattle Index dropped 93 cents to $362.15. Price pressure is evident at the auction level, with the OKC auction showing significant declines of $10-$20 for calves and $2-$6 for feeder heifers. Furthermore, downstream wholesale demand appears soft, with USDA Choice boxed beef prices falling $2.70 to $395.83 and Select boxes down $2.86. While Monday's cattle slaughter of 110,000 head was up from the prior week, it remains down a substantial 10,815 head compared to the same week last year, a key supply dynamic that the market is currently overlooking in favor of immediate price weakness.
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strongly negative
Sentiment Score
-0.70
Ticker Sentiment
