Cattle on Feed and Cold Storage Reports Support Cattle Markets
By Quintin Soloviev / Wikimedia Commons image
Cattle markets continue to find underlying support as tightening supplies and steady red meat demand shape expectations heading into spring. The latest monthly Cattle on Feed Report, combined with insights from the monthly Cold Storage Report, reinforces a constructive outlook for both the cash cattle market and futures trade.
As supply-side pressures remain front and center, recent data confirms a sustained trend of declining cattle numbers. This tightening environment has helped underpin prices across the cattle complex, even as traders remain cautious about broader economic signals and seasonal demand shifts.
“Last week’s monthly cattle on feed report and monthly cold storage report keeps support under the cash cattle and the futures trade. 3% fewer cattle on feed, 5% fewer cattle placed in December keeps a streak alive in consecutive months of lower cattle numbers.
The monthly cold storage report showing demand for red meat has not slowed with total beef down 4% from a year ago, total pork down 2%. April live cattle 52-week high up at 250.92 can be tested as we move into March. March feeder cattle can make a run at their one-year high up above 378.”
The continued reduction in cattle on feed highlights a longer-term contraction that has been developing for several months. Fewer placements and smaller overall inventories suggest that market-ready supplies will remain limited well into the second quarter, helping maintain leverage for feedlots in the cash cattle market.
On the demand side, the cold storage report offers an important signal for protein consumption trends. Despite higher prices, red meat demand has proven resilient, with only modest year-over-year declines in beef and pork. This stability suggests consumers are still willing to absorb elevated prices, providing a crucial demand foundation for cattle markets.
From a technical perspective, futures traders are closely watching key resistance levels. April live cattle futures approaching the 250.92 area represent a critical test of momentum as March approaches. Similarly, March feeder cattle futures appear poised to challenge their one-year highs above 378 if supportive fundamentals persist.
Overall, tightening cattle supplies, steady red meat demand, and constructive chart patterns continue to align in favor of the cattle complex. As spring nears, both cash and futures markets remain well supported by the latest fundamental data.
Audio Reporting by Mark Oppold for Southeast AgNet.