Cattle Futures Surge as Monday Morning Quotes Show Bullish Momentum

Live Cattle Gains Lead the Charge

The cattle complex is displaying robust strength in Monday morning quotes, with live cattle futures posting impressive gains in nearby February contracts. The February live cattle are trading at $236.200, up $0.200 from the previous close, signaling steady buying interest. More significantly, April live cattle have advanced to $237.050, gaining $1.075, while June contracts reached $231.700, up $1.350. This breadth of strength across multiple contract months indicates solid underlying demand in the complex.

Strong Cash and Feeder Cattle Performance

Cash cattle trading from the previous week settled within the $232-233 range nationwide, establishing a stable floor for spot purchases. The feeder cattle segment is demonstrating even more pronounced strength, with contracts rallying between $3.10 and $3.50 during midday trading. The CME Feeder Cattle Index climbed $1.57 to reach $350.22 on January 1, underscoring the buoyancy in this sector. January feeder cattle futures sit at $359.200, up $3.100, March contracts posted $356.150 with a $3.200 gain, and April contracts advanced to $355.575, recording a $3.325 increase.

Supply and Demand Dynamics in Focus

The Monday Oklahoma City feeder cattle auction brings approximately 9,800 head to market with early demand characterized as moderate to good. This trading environment suggests balanced buyer interest heading into the week. Last week’s USDA federally inspected cattle slaughter reached 474,000 head, representing a 48,000 head increase from the prior week, though 30,893 head below year-ago levels.

Wholesale Beef Pricing Reflects Strength

USDA wholesale boxed beef prices advanced in Monday morning quotes, with the Choice-to-Select spread tightening to just $4.48. Choice boxes climbed $4.06 to $354.03, while Select grades increased $2.63 to $349.55, demonstrating stable demand across quality segments.

Export Dynamics Provide Additional Context

Recent export sales data for the week ending December 25 showed net cancellations of 2,127 MT for 2025 deliveries, offset by 2026 sales of 7,379 MT with matching shipments of the same volume. This data illustrates the ongoing shift in delivery preferences among export buyers, with more focus on future-year contracts than current-year commitments.