Farm animals retreat as merchants prepare for US Department of Agriculture reports due out this Friday
In the cattle market, recent trends show a mixed picture for live and feeder cattle futures.
Live cattle futures have experienced some slight softness, with prices slipping by approximately a dollar midday on one reported Thursday. The prices remain within the range of around $2.22 to $2.25 per pound, depending on the contract month[2][3][4]. This softness in cash markets has been observed in bids for live cattle, with the South offering $230 and $231, and the North at $235.
Conversely, feeder cattle futures are in a strong bullish trend, reaching record highs above $3.25 per pound in July 2025. This bullish trend is supported by five consecutive months of new highs and the highest levels since the 2020 lows. The strong fundamentals driving this trend include a reduced U.S. beef cattle herd size due to drought and past herd reductions, as well as steady consumer demand despite elevated beef prices[1].
Export sales data for the week of 7/17 showed a significant increase, with a total of 16,740 MT of beef sold, nearly double the same week last year. Japan was the top destination for 3,600 MT, with 3,500 MT going to South Korea. Shipments also improved by 21.68% to 12,525 MT. South Korea was the top buyer for 9,000 MT, with 2,400 MT going to Japan.
However, cash activity in live cattle has been limited so far this week, and no new bids for live cattle in the South or North were mentioned. The CME Feeder Cattle Index was not mentioned in this paragraph.
On the close of 25th August and 25th October, feeder cattle futures closed at $328.900 and $328.350, respectively, showing a decline of $2.625 and $2.300, respectively. Similarly, live cattle futures for the same dates closed at $222.650 for October 25, down $1.250, and no new fact about live cattle futures for August 25 was provided.
On 23rd July, the CME Feeder Cattle Index was back down $1.26 to $326.18. The Thursday Fed Cattle Exchange online auction from Central Stockyards showed no sales on the 2,556 head offered and $226-231 bids.
On the date of publication, Austin Schroeder did not have positions in any of the securities mentioned in this article.
In summary, feeder cattle futures are currently exhibiting a strong upward trend, while live cattle futures show some short-term softness but remain supported by fundamental demand and market conditions.
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
Investors might consider the current trends in the stock-market, with feeder cattle futures demonstrating a robust bullish trend, indicating potential opportunities for investing. Contrarily, live cattle futures are showing some softness, offering a bit of caution for investors in the finance sector based on the cattle market.
