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The cattle markets Showed early strength as both markets open higher on the day with Feeders gap opening higher. The strength didn’t last as Feeders broke down, making an early low and closed the gap and Fats hovering near its opening lows. Confidence returned to the market and Fats surged, trading to the high of the day at 241.00. The rally closed most of the gap created from Thursday’s breakdown. The breakdown left a gap from Wednesday’s low at 241.325 to the Thursday high at 240.425. Feeders followed and rallied to its high at 371.95. The success didn’t last however as the markets reversed course and crashed, taking out their early lows to a new low for the day, with Fats trading down to 236.475 and Feeders to 368.26. A bump higher into the close saw April Cattle settle at 237.25 and Feeders settled near the low at 367.425. The whipsaw price action to close the week leaves a bad taste with the inability to hold near the highs as the cash market was breaking out to prices not seen since the middle of September, with cash trades as high as 245.00 on Friday. That is what makes it frustrating to see futures unable to sustain the early strength. Traders still seem to put more weight on the union vote to strike the JBS plant in Greeley Colorado when there is talk that the union and the company have mostly settled their differences. The vote was to create a path to negotiation with JBS and the algos went crazy selling as they don’t think, they react to headlines. They are a bane to the livestock producers but a boon to the CME. If this is true and the union and JBS come together on a path to peace, do we go limit up on the headlines…. Probably not. The programs seem to be more adept at crashing markets at this present time. But with cash markets strong and fundamentals still on a bullish path I believe we could see the markets work higher into the summer. Beef is King, you have doctors telling people to eat more protein and with Robert Kennedy touting beef at Cattle Con, the consumer will continue in my opinion to eat beef well into the future. The stigma the medical community has put on beef and fat is gone and it is the smartest move once again in my opinion the government has done. Get away from processed foods and go to the most natural products we have. Headlined by beef. I believe the future is good for beef consumption. We’ll see! If April Live Cattle can hold the low(the low was just under the 21-DMA now at 236.90), we could see price test resistance at 238.125. The Friday high is next and then 242.075. A breakdown from the low could see price test support at 235.625. Support then comes in at 232.75. If Feeder cattle can hold settlement, it could see price test resistance at 369.375. Resistance then comes in at the Friday high. A breakdown from the low could see price test support at 365.675. Support then comes in at the rising 13-DMA now at 363.925.
The Feeder Cattle Index decreased and is at 374.47 as of 02/05/2026.
Boxed beef cutouts were higher as choice cutouts jumped 2.08 to 369.33 and select surged 4.16 to 364.53. The choice/ select spread narrowed and is at 4.80 and the load count was 60.
Friday’s estimated slaughter is 85,000, which is below last week’s 90,000 and last year’s 101,786. Saturday slaughter s expected to be 1,000, which is below last week’s 2,000 and last year’s 7,484. The estimated slaughter for the week (so far) is 536,000, which is above last week’s 528,000 and last year’s 582,606.
The USDA report LM_Ct131 states So far for Friday, negotiated cash trade has been moderate on moderate to good demand in the Texas Panhandle. Compared to last week, live purchases have been 5.00 higher at mostly 245.00. Negotiated cash trade in Kansas has been moderate on very good demand. Compared to last week, live purchases have been 5.00 higher from 242.00-245.00, mostly 245.00. Negotiated cash trade has been limited on moderate demand in Nebraska and the Western Cornbelt. The last established market in Nebraska was Thursday with live purchases from 238.00-241.00, mostly 240.00, and dressed purchases at 378.00. The last established market in the Western Cornbelt was Thursday with live purchases at mostly 240.00 and dressed purchases at 378.00.
The USDA is indicating cash trades for live cattle from 235.00 – 245.00 and at 378.00 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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