Stock Prices of Cattle Companies Climbed on Friday after a Selloff on Thursday due to the Month-End
Live Cattle Futures Remain High Amidst Bullish Market
Live cattle futures continue to trade near record highs, with the August 2025 contract hovering around 230 cents per pound. This upward trend has been sustained by strong demand factors and tight supplies, as evidenced by the August contract's recent settlement at about 230.00 cents/lb, up from mid-July levels near 225-227 cents/lb.
The August contract's breakout above previous resistance levels near 225-230 cents/lb marks new contract highs, signifying a near-term uptrend. Technical analysis supports this bullish outlook.
In contrast, October and December 2025 futures are trading lower, with October around 223.5 cents/lb and December prices slightly below that. This typical backwardation or less bullish sentiment in the later months could be due to seasonal factors or expectations of easing supply/demand balances later in the year.
The current price for August live cattle futures is $235.57, a significant increase of 62 to 70 cents from previous levels. Cash trade for live cattle has also increased this week, with prices in the South at $235-236 and $383 dressed in the North.
USDA estimated cattle slaughter for Thursday at 111,000 head, taking the weekly total to 444,000. The Friday morning Fed Cattle Exchange online auction showed $245 sales in IA and CO, with $235 sales in TX.
Meanwhile, feeder cattle futures are also showing strength. As of midday, feeder cattle futures are up $1.42 to $2.70 across most contracts. Sep 25 Feeder Cattle are at $333.525, up $1.975 from Aug 25's price of $334.075. This upward trend continues, with Oct 25 Feeder Cattle at $331.600, up $1.425 from Sep 25. The CME Feeder Cattle Index was up another $1.98 to $335.01 on July 30.
Dec 25 Live Cattle futures are at $224.550, while Oct 25 Live Cattle futures are at $223.850. Aug 25 Live Cattle futures remain high at $230.350.
In summary, the live cattle market remains bullish, with August 2025 futures trading near record highs around 230 cents/lb. October and December futures are trading lower, reflecting typical market dynamics later in the year. Feeder cattle futures are also showing strength, with prices increasing across most contracts.
Investing in technology may prove beneficial for enhancing the efficiency of cattle farming operations, thereby contributing to the continued strength in the live cattle market. Meanwhile, entertainment platforms could offer unique opportunities for marketing fresh produce from the current cattle harvest, potentially boosting demand and further supporting live cattle futures prices.
