August live cattle futures (LEQ25) scored a contract and record high of $235.025 a hundredweight on Tuesday, Aug. 5. August feeder cattle futures (GFQ25) also hit a contract and record high today of $341.975 a hundredweight. Cattle futures’ record-setting bull run is being fueled by strong cash cattle and beef market fundamentals. Technical charts also remain solidly bullish for live and feeder cattle futures markets. August live cattle and August feeders remain in strong price uptrends on the daily charts, with no strong, early chart clues to suggest price tops are imminent. That means the path of least resistance for cattle futures prices will remain sideways to higher until a significantly bearish technical clue arises.
Indeed, the price strength in cattle futures is likely to continue until the cash and beef markets signal market tops are in place. As of this writing on Wednesday morning, the cash cattle trade has been light so far this week, with an average price fetched of $240.00, according to the USDA. The USDA reported on Monday, Aug. 4 that the average cash cattle trading price last week was a record high $243.17. Wholesale boxed beef prices on Tuesday saw Choice-grade cutout value up another $4.15 to $369.94, while Select-grade gained $4.35 to $345.94.
