Feeders Holding Ground as Live Cattle Retreat into Week's End

DAOdreamer · 2026-01-04T16:11:36+00:00

Monday's trading revealed a downturn in live cattle futures while feeder cattle showed resilience, gaining modestly. Boxed beef pricing was mixed, and slaughter volumes decreased year-over-year, indicating tighter supplies as December ends.

DAOdreamer

2026-01-04 16:11:36

Abstract generation in progress

Monday’s trading session painted a contrasting picture across the cattle complex. Live cattle futures bore the brunt of selling pressure, sliding between 17 and 92 cents lower, with December contracts set to expire this Wednesday. In contrast, feeder cattle contracts refused to surrender entirely, holding on to modest upside momentum despite choppy price action. January feeder cattle futures climbed 82 cents, while March and April months posted gains ranging from $1.22 to $1.25, suggesting underlying buying interest in younger cattle.

The cash market backdrop remained stable, with beef processors reporting live cattle trades the previous week centered around the $229-230 range. Meanwhile, CME’s Feeder Cattle Index rebounded sharply, gaining $6.68 to settle at $356.00 as of December 26, indicating improved sentiment for feeder cattle valuations.

Boxed Beef Pricing Mixed Amid Tightening Spread

USDA’s latest wholesale boxed beef report revealed a nuanced market structure. Choice grade boxes declined $1.88 to $349.33 per hundredweight, while Select grades moved higher by $1.82 to $345.62. The spread between Choice and Select narrowed to $3.71, reflecting a more compressed margin environment between premium and standard beef products.

Slaughter Volume Trails Year-Over-Year Comparisons

Federally inspected cattle slaughter on Monday totaled an estimated 118,000 head, marking a 3,000-head decline from the previous week. Year-over-year, the figure fell short by 4,091 head compared to the same week in the prior year, suggesting tighter supplies entering the final weeks of December.

Contract-by-Contract Snapshot

Live cattle contracts showed selling across all nearby expirations: December finished at $228.90 (down $0.925), February at $228.975 (down $0.675), and April at $229.525 (down $0.175). Feeder cattle markets, by contrast, ended in positive territory: January closed at $347.00 (up $0.825), March at $341.675 (up $1.25), and April at $340.425 (up $1.225).

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