Live cattle futures are trading with notable losses on Wednesday, with midday figures indicating declines ranging from $1.20 to $2.05 per contract. This downward pressure follows a period of relative quiet in the cash cattle market, which saw prices last week settle between $232-$233 across the country.
Market Activity and Cash Trade
The cash cattle market has yet to see substantial activity this week. Last week’s trade concluded with prices in the South at $232-$233 per hundredweight, a range that has set the benchmark for early discussions this week. The lack of robust cash trade is a key factor influencing the futures market’s sentiment.
Fed Cattle Exchange Offers No Sales
Further underscoring the sluggishness in the physical market, the Wednesday morning Fed Cattle Exchange online auction reported no sales. A total of 974 head were offered, but the absence of bids indicates a disconnect between seller expectations and buyer interest. This lack of price discovery in the auction environment contributes to the uncertainty seen in futures trading.
Feeder Cattle Futures Also Under Pressure
The weakness extends to the feeder cattle sector, with futures contracts also experiencing significant declines. Feeder cattle futures are down between $2.50 and $2.90 on Wednesday. This movement contrasts with the CME Feeder Cattle Index, which had shown a slight uptick of 56 cents to $369.12 as of January 12.
Wholesale Boxed Beef Data
In the wholesale beef market, USDA reported higher prices in its Wednesday morning report. The Choice/Select spread has widened to $1.82, indicating a growing premium for higher-graded beef. Choice boxes saw an increase of $1.34, reaching $359.33, while Select boxes climbed 33 cents to $357.51. Despite these gains in wholesale values, the futures market for live cattle is not reflecting this strength.
Cattle Slaughter Numbers
Tuesday’s federally inspected cattle slaughter was estimated at 118,000 head. This brings the week-to-date total to 232,000 head. These figures represent a slight decrease compared to the previous week, with 1,000 fewer head processed. Year-over-year, the slaughter is down by 8,688 head, suggesting a potentially tighter supply in the coming weeks, though this has not yet translated into upward pressure on live cattle futures.
Specific Futures Contract Performance
Examining specific contracts provides a clearer picture of the day’s trading:
- February 2026 Live Cattle are trading at $235.200, down $2.050.
- April 2026 Live Cattle are trading at $237.400, down $1.575.
- June 2026 Live Cattle are trading at $232.200, down $1.200.
- January 2026 Feeder Cattle are trading at $363.675, down $2.600.
- March 2026 Feeder Cattle are trading at $359.250, down $2.875.
- April 2026 Feeder Cattle are trading at $357.950, down $2.650.
The collective decline across these contracts highlights a broad-based bearish sentiment in the cattle complex on Wednesday. Market participants are closely watching for any signs of renewed activity in the cash market and for further indications of supply and demand dynamics.
