DTN Cattle Analysis and Recommendations

DTN Cattle Analysis & Recommendations

08/26/2025

Note: Futures and options are typically not good hedging tools for the cattle market. For hedging purposes in your state, check Livestock Risk Protection coverage and quotes at https://public.rma.usda.gov/livestockreports/LRPReport.aspx.

POSITIONS

2022: Sold short December cattle on Sept. 26, 2022, for 25% of November/December marketings. Dec cattle were at $146.80 at the time of the recommendation.

CURRENT ASSESSMENT

It was an amazing week for the live cattle complex as the futures market was well supported by traders, as they believed the market’s fundamentals would again perform this week, and thankfully, they did. Between the consistent rally in the boxed beef market and the $2.00 to $5.00 rally seen in the fed cash cattle market, the market had more support than it could have ever wished for. Throughout the week, Southern live cattle traded at $240, which is $5.00 higher and Northern dressed cattle traded at $385, which is $2.00 higher. October live cattle is a Type 2, somewhat bullish market.

DAILY NOTE

October live cattle closed $1.37 higher at $238.20 as traders quickly recovered the position lost on Monday and then added some to the market — to the point the contract again scored a new contract high. Asking prices are noted in Texas at $243 but are still not established in the North. Tuesday’s slaughter is estimated at 118,000 head — 2,000 head more than week ago and 1,000 head less than a year ago. .

RECOMMENDATIONS*

There have been no hedge recommendations yet in 2025 and none are expected anytime soon, as long as cattle supplies remain tight.

*DTN recommendations are general in nature and are not intended to be specific for any particular person or farming business. The buying and selling of futures or options involves substantial risk and is not suitable for everyone. DTN accepts no responsibility for actual trades made.