Live and feeder cattle futures closed significantly higher, with gains of $1.40-$1.85 and $2.50-$2.70 respectively, underpinned by robust cash prices and a rising CME Feeder Cattle Index. While USDA Wholesale Boxed Beef prices saw Choice and Select cuts decline, the Choice/Select spread widened. This broad market strength is further supported by year-over-year lower cattle slaughter estimates, signaling tightening supply.
Live and feeder cattle futures markets demonstrated significant strength, with contracts closing higher by $1.40 to $1.85 and $2.50 to $2.70, respectively. This rally is underpinned by solid fundamental support from the physical market, evidenced by firm cash settlements of $230-$232 in the South and up to $245 in the North, alongside a $2.27 increase in the CME Feeder Cattle Index to $332.20. A key bullish driver is the tightening supply situation, as USDA's estimated weekly cattle slaughter, while up slightly week-over-week, remains 15,899 head below the same period last year. This supply constraint contrasts with a softer immediate demand signal from the wholesale market, where Choice boxes fell $3.54 and Select dropped $4.37. However, the widening of the Choice/Select spread to $21.71 indicates persistent strong demand for higher-quality beef, a nuance that mitigates the headline price decline.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.65
Ticker Sentiment
