Live cattle futures concluded the midweek trading session on a downward trajectory, with contracts posting losses ranging from 10 to 75 cents. The decline was observed across the board, signaling a cautious sentiment in the livestock markets on December 5, 2024, as reported by Austin Schroeder for Barchart.
Live Cattle Contracts See Modest Retreat
The most actively traded live cattle futures contracts experienced varied but consistent declines. The December 2024 Live Cattle contract (Dec 24) closed at $188.375, down $0.100. The February 2025 contract (Feb 25) saw a more significant drop, settling at $188.325, a decrease of $0.750. Meanwhile, the April 2025 Live Cattle contract (Apr 25) ended the day at $190.500, down $0.650. These movements reflect a general softening in the near-term and mid-term outlook for live cattle.
Feeder Cattle Lead Market Lower
Feeder cattle futures exhibited more pronounced losses, leading the overall market decline on Wednesday. Contracts posted losses ranging from $1.40 to $2.35. Specifically, the January 2025 Feeder Cattle contract (Jan 25) closed at $256.950, down $2.350. The March 2025 contract (Mar 25) settled at $255.700, a decrease of $1.575, and the April 2025 contract (Apr 25) finished at $256.700, down $1.425. Despite these futures declines, the CME Feeder Cattle Index showed a slight rebound, up $2.25 from the previous day to reach $259.38 on December 2.
Quiet Cash Trade and Auction Activity
Cash trade for cattle remained largely subdued throughout the week. The Wednesday morning Fed Cattle Exchange online auction, facilitated by Central Stockyards, reported sales on only one lot out of the 1,322 head listed. This single lot sold at $191 using the BidTheGrid™ method, with bids for other offerings ranging from $185 to $188 live. Outside of the auction, a few bids in the North were reported at $190, indicating limited cash market engagement and a cautious approach from buyers.
Wholesale Beef Prices Present Mixed Picture
The USDA wholesale Boxed Beef prices, detailed in the Wednesday PM report, presented a mixed performance. Choice boxes experienced a decline, down $2.50 to $308.33 per hundredweight (cwt). Conversely, Select boxes saw an increase, rising $2.37 to $277.70 per cwt. This divergence resulted in a narrowing of the Choice/Select spread, which settled at $30.63, suggesting a slight shift in demand dynamics between the two grades.
Slaughter Rates Indicate Reduced Processing
USDA estimates for federally inspected cattle slaughter on Wednesday totaled 125,000 head, contributing to a week-to-date total of 367,000 head. This figure represents a reduction of 3,000 head compared to the previous week and is notably 10,631 head below the slaughter volume recorded during the same week last year. The reduced slaughter rates could reflect tighter cattle supplies or adjustments in processing schedules, potentially influencing future market dynamics.
The midweek session’s performance in the cattle markets highlights a complex interplay of futures speculation, subdued cash trade, and mixed wholesale beef price trends. While feeder cattle led the downturn, the broader market remains sensitive to supply-demand balances and processing capacities, as indicated by the latest USDA data.
