Midweek Rally Strengthens Live Cattle Futures Prices Across Markets

Live cattle futures prices demonstrated robust momentum on Tuesday, with contracts advancing between 30 and 55 cents during midday trading sessions. This strength reflects broader market confidence in cattle commodities. The previous week’s cash settlement established a floor at $232-233, providing context for the current upward trajectory. Feeder cattle futures participated in the rally, climbing $1.95 to $2.30 by midday, signaling coordinated buying pressure across livestock derivatives.

The CME Feeder Cattle Index reinforced bullish sentiment, posting a $2.89 gain to reach $353.11 on January 2. Physical market support came from the Monday OKC feeder cattle auction, where approximately 9,266 head exchanged hands. Auction dynamics revealed price appreciation of $3-10 for feeder steers, while heifers surged $10-20 and calves jumped $15-20, demonstrating sustained demand across animal categories.

Speculative positioning data through December 30 revealed shifting market dynamics in livestock futures. Large managed money traders reduced their net long exposure by 1,893 contracts in live cattle futures and options, bringing positions to 92,975 contracts. Conversely, feeder cattle futures attracted speculative interest, with positioning expanding by 666 contracts to 15,295 contracts by the previous Tuesday. These flows suggest differentiated outlooks between the two livestock categories.

Processing activity remained robust Monday, with federally inspected cattle slaughter estimated at 115,000 head. While this represented a 3,000 head decline from the prior week, volumes exceeded year-ago levels by 6,461 head, indicating sustained throughput. USDA Wholesale Boxed Beef prices softened in Tuesday morning reporting, with Choice boxes declining 53 cents to $353.19 and Select beef falling 69 cents to $350.81. The Choice/Select spread compressed to $2.38, reflecting margin pressure in the retail channel.

Forward live cattle futures prices showcase the market’s bullish architecture. February 26 contracts reached $236.400, up $0.525, while April 26 climbed to $237.125, up $0.325, and June 26 settled at $231.775, up $0.350. Feeder cattle futures extended gains across multiple expirations: January 26 Feeder Cattle advanced $2.050 to $361.025, March 26 jumped $2.275 to $357.850, and April 26 gained $1.950 to $356.850. This across-the-board strength in live cattle futures prices and feeder cattle futures demonstrates consistent bullish conviction in the livestock complex heading into year-end.