Cattle Market Sets Sights on Tuesday Quotes and Weekly Volatility

StableGenius · 2026-01-04T15:58:45+00:00

Cattle markets faced downward pressure with live cattle futures declining, while feeder cattle showed some gains. USDA beef assessments were mixed, and slaughter estimates declined, influencing Tuesday's market outlook. Traders should watch contract expirations and feeder dynamics.

StableGenius

2026-01-04 15:58:45

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The cattle complex faced downward pressure as traders eye the midweek session with cautious positioning. Live cattle futures retreated significantly on Monday, with losses spanning from 17 to 92 cents across the contract spectrum. December delivery—set to expire Wednesday—saw open interest contract by 879 positions, signaling reduced commitment ahead of contract rollover.

Price Action Across Cattle Contracts

Feeder cattle futures displayed resilience despite near-session weakness, ultimately closing with gains. January delivery rose $0.825, while March added $1.250 and April climbed $1.225. The CME’s Feeder Cattle Index rebounded to $356.00 on December 26, gaining $6.68 from prior levels.

In the live cattle space, February contracts ended at $228.975, down $0.675, while April settled at $229.525 with a modest $0.175 decline. Cash cattle trade from the previous week came in at $229-230 per cwt, providing underlying support for the futures complex.

Beef Values Show Mixed Signals Heading Into Tuesday Quotes

USDA wholesale boxed beef assessments delivered a mixed picture on Monday afternoon. Choice beef dropped $1.88 to $349.33, while Select beef gained $1.82 to settle at $345.62. The Choice/Select spread compressed to $3.71, reflecting tightening margin dynamics in the wholesale market.

Federal slaughter estimates for Monday totaled 118,000 head, representing a 3,000-head decline week-over-week and 4,091 head below the comparable year-ago period. These production flows will likely influence Tuesday’s quotes as market participants reassess supply-side fundamentals.

Market Outlook and Tuesday Considerations

The cattle market enters the midweek session with a backdrop of moderating slaughter activity and mixed beef values. Traders focusing on Tuesday quotes should monitor December contract expiration dynamics while watching for any shifts in feeder cattle momentum. The near-term technical picture suggests consolidation, though underlying cash strength provides a floor for further downside exploration.

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