Cattle Market Shows Strength as Trading Heats Up

Cattle futures are displaying solid upward momentum during Tuesday’s midday session, with live cattle contracts advancing between $1.52 and $2.10 as traders continue positioning ahead of December’s Wednesday expiration. The underlying cash market provided support, with last week’s transactions settling in the $229-$230 range.

Midday Market Activity and Fed Cattle Data

Tuesday morning brought limited activity to the Fed Cattle Exchange, where dressed sales transactions reached $355 on just 40 of the 1,278 head offered, reflecting the slower-paced week that has characterized trading so far. Bidding interest remained steady at $225 levels.

Feeder Cattle Continue Their Climb

The feeder cattle complex is posting even stronger gains, advancing $2.55 to $2.90 midday. CME’s Feeder Cattle Index rebounded sharply, jumping $6.68 to close at $356.00 on December 26, signaling renewed buying interest in the replacement animal segment.

Wholesale Beef Market Dynamics

USDA’s Tuesday morning wholesale boxed beef pricing showed mixed results. The Choice-to-Select spread tightened to $2.83, with Choice boxes declining 82 cents to $348.51 while Select boxes edged up 6 cents to $345.68.

Slaughter Volume Trail Year-Over-Year

Monday’s federally inspected cattle slaughter came in at an estimated 118,000 head. This represented a 3,000-head decrease from the prior week and a 4,091-head shortfall compared to the same period last year, suggesting tighter supply conditions that could support price floors going forward.

Contract Settlement Snapshot:

• Dec 25 Live Cattle: $231.000, +$2.100
• Feb 26 Live Cattle: $230.500, +$1.525
• Apr 26 Live Cattle: $231.150, +$1.625
• Jan 26 Feeder Cattle: $349.550, +$2.550
• Mar 26 Feeder Cattle: $344.575, +$2.900
• Apr 26 Feeder Cattle: $343.300, +$2.875