Live cattle futures rallied on Tuesday with gains of $2.10 to $3.05, while feeder cattle also posted a strong bounce, up $2.70 to $2.90, supported by strengthening cash trade and higher auction prices. This bullish market sentiment is reinforced by USDA estimated cattle slaughter numbers showing a decrease from both the prior week and last year, suggesting tighter supply. Wholesale boxed beef prices were mixed, with Choice boxes up and Select down, leading to a widening Choice/Select spread.
Live and feeder cattle futures experienced a significant rally, with live cattle gaining $2.10 to $3.05 and feeder cattle advancing $2.70 to $2.90. This upward momentum is underpinned by strong fundamentals in the physical market, evidenced by strengthening cash trade prices from the prior week ($228-$230 in the South) and a substantial price increase of $10-$25 at the weekly OKC feeder cattle auction. A key bullish driver is the tightening supply, confirmed by USDA's estimated cattle slaughter, which is running 10,090 head below the same week last year. However, the wholesale market presents a more nuanced picture, with USDA's report showing mixed boxed beef prices. While Choice boxes rose $0.65 to $377.72, Select boxes declined $2.00 to $362.58, widening the Choice/Select spread to $15.14. This divergence suggests robust demand for high-quality beef but potential softness for lower-grade cuts.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.75
Ticker Sentiment
