Beef Futures Surge as Cattle Markets Fire Up 2026

Anon4461 · 2026-01-12T17:48:58+00:00

The new year began positively for cattle markets, with live cattle futures rising due to strong cash market support. Feeder cattle outperformed, with significant gains noted. Boxed beef prices strengthened, while slaughter activity increased but showed a year-over-year decline, indicating tighter availability.

Anon4461

2026-01-12 17:48:58

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The new year opened with bullish momentum across cattle markets, with live cattle futures making strong gains as cash markets provided solid support. Front-month contracts advanced between $3.50 and $4.40, while February futures jumped $6.35 for the week, signaling sustained buying interest in the livestock complex.

Cash Markets Drive the Momentum

A pickup in cash trade activity helped underpin the strength in beef futures. Settlement prices climbed to $232 nationwide, representing a $2-3 jump from the previous week’s levels. This improvement in cash liquidity encouraged speculative and hedging demand across the board, creating a virtuous cycle that propelled futures higher.

Feeder Cattle Outperform with Larger Gains

The breeding side of the market showed even greater enthusiasm. Feeder cattle futures posted impressive gains on Friday, with front-month contracts climbing $5.85 to $8.05 as traders positioned for the year ahead. January contracts surged $9.925 during the week, while the CME Feeder Cattle Index rose $1.57 to settle at $350.22 as of January 1—reflecting widespread optimism about herd expansion potential.

Boxed Beef Pricing Regains Strength

USDA wholesale boxed beef prices reversed recent weakness in Friday afternoon trading, with the Choice/Select spread tightening to just $3.05. Choice grade beef moved $2.52 higher to $349.97, while Select climbed $4.54 to $346.92. The narrowing spread suggests stable demand across both premium and value-focused retail channels.

Slaughter Activity Signals Mixed Signals

Federally inspected cattle slaughter reached an estimated 474,000 head this week—a 48,000 head increase from the previous week. However, year-over-year comparisons showed a 30,893 head decline, hinting at tighter cattle availability that could continue supporting beef futures prices as the year progresses.

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