Live Cattle Prices Pull Back on Weak Demand and Technical Selling

LiquidityHunter · 2026-02-06T04:00:44+00:00

Live cattle prices have fallen due to ongoing weakness in the futures markets, with declines seen across all contracts. Boxed beef prices also weakened, reflecting decreased demand, while slaughter volumes lag behind last year's levels.

LiquidityHunter

2026-02-06 04:00:44

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Live cattle prices retreated this week as futures markets extended their downward pressure across the entire cattle complex. The front-month live cattle contract experienced declines ranging from 35 to 60 cents at the closing bell, signaling sustained weakness in buyer interest. Meanwhile, feeder cattle futures also reflected market softness, with most contracts sliding 50 to 60 cents, though the nearby January delivery managed a modest 15-cent gain. The current environment suggests cautious sentiment among traders ahead of the week’s cash transactions.

Futures Market Weakness Pressures Live Cattle Prices Across All Contracts

The slide in live cattle prices extended across the entire curve on Tuesday, with each active contract showing material losses. February delivery settled at $235.60, down 42.5 cents, while April fell to $237.40, off 60 cents. June live cattle prices declined 37.5 cents to close at $233.25. These moves reflect broader selling pressure and a lack of aggressive buying support. The CME Feeder Cattle Index climbed marginally by $1.16 to $364.73, offering limited relief to the overall bearish undertone.

Boxed Beef Prices Weaken as Processing Activity Slows

Weakness in live cattle prices extended into the wholesale beef market, where the USDA’s Boxed Beef report showed softer valuations. The Choice-Select spread widened to $2.92, indicating a divergence in demand between premium and standard beef cuts. Choice boxes declined 79 cents to $368.11 per cwt, while Select grades fell $1.93 to $365.19. This softening in processed beef values suggests limited downstream demand and reinforces pressure on live cattle prices going forward.

Slaughter Volume Trails Year-Ago Levels

USDA federally inspected cattle slaughter totaled 112,000 head on Tuesday, bringing the weekly total to 212,000 head. This represents a shortfall of 7,000 head compared to the previous week and trails year-ago levels by 24,878 head. The slower pace in slaughter volume reflects earlier liquidation patterns and may eventually provide support to live cattle prices if production constraints persist. Cash trade, which provides real-time pricing on live cattle, has not yet resumed this week following last week’s range of $233.00 to $236.50 per cwt.

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