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The Cattle futures markets had a good start to the week with futures rallying to the week high by Wednesday, looking poised to take out resistance levels. But the rumor mill took over on Thursday and prices tanked, causing serious technical damage to the daily continuous charts. The price action in both the Live and Feeder Cattle markets formed Bearish Engulfing candles at the high of the recent moves. So, after a good start to the week, it looked like the market would fall apart on unsubstantiated rumors. Who starts these rumors and how it gets the trading systems to react when most individuals don’t see the rumors until after the market closes is a problem, in my opinion. Are these rumors intentionally started to cause a desired result? Someone, something whoever, whatever comes up with this stuff causes great harm to the markets, in my opinion. Hearing well after the fact that there is a major plant about to close and expectations are ramping up that more cattle will be coming across the border on its open than was talked about by the powers that be in the initial discourse on the opening of the border doesn’t help producers. Doesn’t help individual traders either. Who starts these rumors and how does it get into the system? This is with cash prices making new highs for the last two weeks and cash feeder prices taking the index back into the high 350’s. Who benefits from this and why isn’t this publicly announced. You have to keep digging until something sticks out. It doesn’t help anyone and allows the packer to back off their bids as futures crash. It isn’t good for producers. Computers take over and drive futures lower and the producer who is trying to make a living selling cattle has no chance to react because he is not part of the news feed. This seems to happen when all the news that can negatively affect the market has been digested and cash trading is commencing and moving to higher levels. The producer can’t catch a break, in my opinion. This doesn’t help the price discovery that the markets are here for. This is another issue that producers have to deal with that has nothing to do with fundamentals of supply and demand. What rumor will be started and when to keep a lid on prices, now that futures bounced at the end of the session? We’ll see!... September Feeder Cattle opened higher and traded to an early high and then broke down to the low at 340.60. The sell off stalled just above Thursday’s low and breached support at 341.05. Price reversed course and surged, trading to the high of the day at 345.65. It settled near the high at 345.225. The rally took price past resistance at 344.675 and the declining 21-DMA now at 344.975. This was a positive end to the week but we are still faced with a sell signal caused by the Bearish Engulfing candle. Price needs to take out Thursday’s high at 349.45 to negate this bearish formation, in my opinion. If settlement holds, it could revisit the Thursday high. Resistance then comes in at 350.20. A failure from 344.675 could see price revisit the 341.05 support level. October Live Cattle opened higher and traded to the high at 226.90. The rally stalled just above the key level at 226.60. Price reversed and broke down to the low at 222.75. This pressured support at 223.275 and price was able to reverse course after making a new low for the week. The rally took price into the upper end of the trading range and it settled at 225.275. If price can hold settlement, it could re-test resistance at 226.60. Resistance then comes in at 230.425. This would negate the Bearish Engulfing candle. A failure from settlement could see price re-test support at 224.55. Support then comes in at 223.275.
The Feeder Cattle Index surged and is at 357.36 as of 08/06/2026 settlement.
Boxed beef cutouts were higher as choice cutouts increased 0.50 to 364.36 and select jumped 2.59 to 352.37. The choice/ select spread narrowed and is at 11.99 and the load count was 60.
Friday’s estimated slaughter is 95,000, which is below last week’s 98,000 and above last year’s 86,697. Saturday slaughter is expected to be 1,000 which is below last week’s 7,000 and above last year’s 830. The estimated total for the week (so far) is 509,000, which is below last week’s 512,000 and last year’s 536,811.
The USDA report LM_Ct131 states: So far for Friday, negotiated cash trade has been light on moderate demand in Nebraska. Compared to Thursday, live purchases have been steady at 235.00, with a few dressed at 370.00, but not enough for an adequate market test. The last dressed market test for Nebraska was Thursday at 370.00. Negotiated cash trade has been mostly inactive on light demand in Kansas and the Western Cornbelt. The last established market test in Kansas was Thursday with live purchases at 235.00. The last established market test in the Western Cornbelt was Thursday with live purchases from 235.00-236.00 and dressed purchases at mostly 370.00.
The USDA is indicating cash trades for live cattle from 233.00 – 238.50 and from 360.00 – 380.00 on a dressed basis (so far) for the week.
**Call me for a free consultation for a marketing plan regarding your livestock needs.**
Ben DiCostanzo
Senior Livestock Analyst
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
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