Cattle Hit a Speedbump Final Week. Is This the Finish of the Bull Run?
The dwell (LEQ25) and feeder cattle (GFQ25) futures markets final week noticed profit-taking from speculators and closed out the week with technically bearish weekly low closes on Friday. That means some follow-through, chart-based promoting stress early this week. The near-term technical postures for dwell and feeder cattle futures markets have began to barely deteriorate. Extra importantly, the money cattle (GFY00) (LEY00) and recent beef markets are additionally displaying delicate indicators of weak point.
The money cattle commerce as of noon Friday was comparatively gentle. The USDA reported late Friday morning that steers have been fetching a median of $238.00, whereas heifers averaged $237.00. The week prior’s common money cattle commerce was reported at $238.68, for an eighth straight week of document excessive common money cattle costs. That streak is now in jeopardy. USDA will report its ultimate money cattle common buying and selling value close to noon Monday.
The recent beef market can also be beginning to see costs slip. The boxed beef report Friday confirmed wholesale beef costs combined, with Alternative falling $3.29 to $390.50 and Choose climbing $2.36 to $376.95. Choose-grade reached a brand new for-the-move excessive Friday, after Alternative-grade did the identical Thursday.
Final Friday afternoon’s month-to-month USDA cattle-on-feed report confirmed U.S. cattle on feed down 1%, which was near dealer expectations. Cattle and calves on feed for the slaughter market within the U.S. for feedlots with capability of 1,000 or extra head totaled 11.4 million head on June 1, 2025. The cattle stock was 1% under June 1, 2024. Placements in feedlots throughout Could totaled 1.89 million head, 8% under 2024 and decrease than market expectations. Web placements have been 1.82 million head. Throughout Could, placements of cattle and calves weighing lower than 600 kilos have been 335,000 head, 600-699 kilos have been 275,000 head, 700-799 kilos have been 450,000 head, 800-899 kilos have been 516,000 head, 900-999 kilos have been 230,000 head, and 1,000 kilos and larger have been 80,000 head. Marketings of fed cattle throughout Could totaled 1.76 million head, 10% under 2024 and decrease than market expectations.
Cattle producers and merchants over the weekend have been intently monitoring scorching warmth within the U.S. Plains states. Temperatures close to 100 levels, warmth indexes close to 110 levels, and excessive winds probably induced some livestock stress that can at the very least influence weight achieve.
