Cattle Reverse and Finish Lower After Posting New Contract Highs
Cattle futures posted new contract highs but reversed to finish sharply lower. A sign of things to come or just a healthy correction?
Cattle on Feed and Cold Storage Snapshot
Cattle on Feed Snapshot
On Feed: 98.0 VS average estimate of 98.5
Placements: 97 VS average estimate of 96.8
Marketings: 97 VS average estimate of 96.7
United States Cattle on Feed Down 2 Percent
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.4 million head on May 1, 2025. The inventory was 2 percent below May 1, 2024.
Placements in feedlots during April totaled 1.61 million head, 3 percent below 2024. Net placements were 1.56 million head. During April, placements of cattle and calves weighing less than 600 pounds were 310,000 head, 600-699 pounds were 225,000 head, 700-799 pounds were 370,000 head, 800-899 pounds were 443,000 head, 900-999 pounds were 195,000 head, and 1,000 pounds and greater were 70,000 head.
Marketings of fed cattle during April totaled 1.83 million head, 3 percent below 2024.
Other disappearance totaled 50,000 head during April, 11 percent below 2024.
Cold Storage
U.S. FROZEN BEEF STOCKS 418.147 MLN LBS APRIL 30 -USDA
Total red meat supplies in freezers were up 5 percent from the previous month but down 6 percent from last year. Total pounds of beef in freezers were down 2 percent from the previous month and down 2 percent from last year. Frozen pork supplies were up 11 percent from the previous month but down 9 percent from last year. Stocks of pork bellies were up 9 percent from last month but down 22 percent from last year.
Live Cattle (August)
August live cattle futures continued to grind higher last week, riding the 20-day moving average along the way, that will continue to be viewed as support, which comes in at 208.10 today.
Resistance: 211.00-211.725**, 214.50**
Pivot: 208.475-209.00
Support: 205.32-205.40***, 203.275-204.075****, 201.175**
Daily Cattle and Beef Summary
Cutout values were firm on Friday afternoon with choice cuts .58 higher to 361.55 and select cuts 2.37 higher to 351.32. Slaughter on Friday was reported at 97k head. The 5-area average price for live steers was reported at 229.51.
Seasonal Tendency Update
(updated 5.27.25)
Below is a look at historical price averages for August futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results).
Commitment of Traders Update
Friday’s Commitment of Traders report showed Funds were net sellers of roughly 3k futures and options contracts, snapping the 4-week streak of buying and brining the net long down to 132,564. Still lofty on historical standards.
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