Cattle futures lost momentum on Thursday, despite higher negotiated cash fed cattle prices.
Toward the close, Live Cattle futures were an average of 34¢ lower, except for an average of $1.96 higher in the back two contracts.
Feeder Cattle futures were an average of $2.30 lower, except for an average of 35¢ higher in three contracts toward either end of the board.
Negotiated cash fed cattle trade ranged from inactive on light demand in the Texas Panhandle to light on moderate demand elsewhere through Thursday afternoon, according to the Agricultural Marketing Service.
Based on the latest established trade, compared to last week, FOB live prices are $4 higher in the Texas Panhandle at $260/cwt. Elsewhere, FOB live prices are mostly $265/cwt., which is $5-$9 higher in Kansas, $5 higher in Nebraska, and $5 higher in the western Corn Belt. Dressed delivered prices are $13 higher in Nebraska at $415 and $5-$10 higher in the western Corn Belt at $410.
Choice boxed beef cutout value was $1.23 lower Thursday afternoon at $387.45/cwt. Select was 42¢ higher at $389.00.
Grain and Soybean futures were lower Thursday, likely tied with disappointment in the lack of commodity news from the U.S.-China trade talks.
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were 19¢ to 20¢ lower. Corn futures were mostly 10¢ to 13¢ lower. Soybean futures were 23¢ to 35¢ lower through near Nov.
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Major U.S. financial indices closed higher Thursday, led by tech stocks and supported by optimism surrounding U.S.-China trade talks. with primary support from tech stocks.
The Dow Jones Industrial Average closed 370 points higher. The S&P 500 closed 57 points higher. The NASDAQ was up 232 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 5¢ to 82¢ higher through the front six contracts.
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Between 2000 and 2025, the number of federally inspected beef packing plants (fed cattle and cow) with an annual capacity of 1 million head or more (largest plants) declined from 16 to 11, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. During the same period, the number of plants with an annual capacity of up to 100,000 head (smallest plants) increased from 683 to 888.
Total cattle slaughter last year of 29.252 million head was 6.4% less year over year and 13.1% less the recent cyclical peak in 2022, according to Peel. The largest plants harvested 47.3% of the total cattle, compared to 7.1% for the smallest.
“The general structure of the beef packing industry has been in place for nearly 35 years,” Peel says. “Beef packing in the U.S. consolidated rapidly in the 1980s and early 1990s. By 1993, the industry achieved a high level of concentration that has remained mostly constant since.”
Even so, Peel notes the largest plants account for a declining percentage of fed cattle slaughter since 2019, with the current percentage the smallest since 1994. He explains fed cattle slaughter was a record-high in 2000 at 29.6 million head. Last year it was 19.5% less at 23.8 million head.
“On average, fed slaughter is about 80% of total cattle slaughter,” Peel says, explaining the largest plants accounted for 58.1% of fed slaughter last year. “Fed slaughter is currently 81.4% of total cattle slaughter, the highest percentage since 2007. Low cow slaughter since 2022 has increased the fed slaughter percentage.”
Listen to more of Peel’s market insights here.