Feeder Cattle Traders Hold On as Live Cattle Retreat

The cattle futures market showed a divergence on Monday, with live cattle contracts declining sharply while feeder cattle futures managed to preserve gains despite afternoon volatility.

Live cattle futures slipped between 17 to 92 cents lower, with December expiration arriving on Wednesday. The prior week’s cash trade had settled in the $229-230 range, establishing a baseline for current market sentiment. Meanwhile, feeder cattle futures demonstrated resilience—despite choppy price action heading into the close, they still posted solid gains ranging from 82 cents to $1.25 per hundredweight.

The CME’s Feeder Cattle Index rebounded to $356.00 on December 26, up $6.68, signaling stronger confidence among traders willing to hold on to positions in this segment. This uptick contrasts with the pressure seen in live cattle, suggesting market participants are differentiating between the two categories.

Beef Price Landscape Shows Mixed Signals

USDA wholesale boxed beef pricing remained choppy in Monday’s afternoon report. The Choice/Select spread compressed to $3.71, reflecting tightening margins. Choice boxes declined $1.88 to $349.33, while Select boxes gained $1.82 to reach $345.62—a pattern indicating uneven demand across quality tiers.

Slaughter Data Trails Seasonal Comparisons

Monday’s USDA federally inspected cattle slaughter came in at 118,000 head, representing a 3,000-head decrease from the previous week and falling 4,091 head short of the year-ago equivalent. This softness in slaughter volume adds complexity to the supply-demand dynamics traders must navigate as they hold on to their positions through the holiday period and into year-end settlement.