Market Overview - April live cattle futures rose by $1.65 to $237.25, with a weekly increase of 45 cents [1] - March feeder cattle futures gained $3.35 to $367.425, marking a weekly gain of $7.15 [1] - Despite increased volatility and profit-taking from short-term traders, the long-term fundamentals for cash and beef markets remain solid, with a bullish technical posture for cattle futures [1] Cash Cattle Trading - Cash cattle trading activity increased, with USDA reporting steers averaging $239.91 and heifers averaging $239.85 [4] - The previous week's average cash cattle trading was reported at $239.44 [4] Market Fundamentals - Cash cattle and beef market fundamentals and technicals are solid, although the U.S. stock market has shown instability, affecting other commodity markets like gold, silver, and copper [5] - The USDA's semi-annual cattle inventory report confirmed a decline in the U.S. herd for the ninth consecutive year, indicating historically low cattle supplies on feedlots [7] - Strong demand for ground beef and reduced cattle slaughter are expected to support cash and futures prices [7] Future Price Trends - There is potential for live cattle and feeder cattle futures prices to challenge record highs from last fall, possibly in the near term [8] - April lean hog futures fell by 42.5 cents to $97.95 but saw a weekly increase of $2.80, with bullish technicals likely to keep hog futures elevated [9]

Market Trends - February live cattle futures reached a four-week high, while January feeder cattle futures experienced a slight pullback after a six-week high, indicating potential market bottoms and sustainable price uptrends [1] - Improved technical postures in cattle futures markets are likely to attract chart-based speculators to the buy side [1] Cash Cattle and Boxed Beef - The USDA reported an average cash cattle trade of $221.21 per hundredweight, up $9.68 from the previous week, while boxed beef values have also shown improvement, encouraging buying in live and feeder cattle futures [3] - Recent wintry weather in the U.S. Plains states is expected to stress livestock, positively impacting price trends for futures [3] Consumer Demand - U.S. consumer demand for beef remains strong, particularly from retailers promoting beef cuts for holiday meals, with cattle carcass weights reaching an all-time high of 960 pounds, up 3 pounds from the previous week and 41 pounds higher than last year [4] - The increase in quality due to dairy/beef crosses is reducing the significance of the Select-grade category, likely leading to more prime cuts available during the holiday season [4] Supply Dynamics - Recent declines in cattle prices coincide with a critical decision period for cattle farmers regarding heifer retention for breeding, which could impact herd expansion in 2028 [5] - With input costs at near-record levels and prices still 25% higher than a year ago, farmers are incentivized to market cattle rather than retain them for breeding, suggesting tight cattle supplies through 2026 [5]