Commentary

Live cattle futures began the shortened holiday week with a softer tone, as traders remain cautious about the sustainability of the current cash market, and consumer demand shows signs of weakening due to high meat counter prices. Feeder cattle cash markets appear to have plateaued, with weather and rising corn prices affecting bids, while lean hog futures saw early gains erased amid steady cash and product prices and favorable export conditions with Mexico.

Live cattle prices started the week with higher expectations but settled slightly lower due to futures’ inability to reach new highs, while average carcass weights rose above the three-year average. Feeder cattle markets remain strong with tight supplies and high demand, but questions persist about feedlot sustainability amid rising costs, and discussions around reopening the Mexican border for imports remain stalled, potentially impacting U.S. prices.