March 20, 2026 — Cattle futures posted strong gains in Friday trading as markets positioned themselves ahead of the afternoon release of the U.S. Department of Agriculture’s monthly Cattle on Feed report. Live cattle futures advanced between $1.17 and $1.90, while feeder cattle contracts saw even sharper increases of $3.50 to $3.80.
Market Anticipates Mixed Feedlot Data
Traders are expecting the report to show a complex picture for the cattle industry. Pre-report estimates, cited by industry analysts, suggest February placements into feedlots rose a modest 0.2% compared to the same month last year. Marketings of cattle from feedlots, however, are projected to have fallen 7.4% year-over-year.
The total inventory of cattle on feed as of March 1 is anticipated to be down 0.7% from 2025 levels. This data is a key indicator of future beef supplies and directly influences both cash and futures market pricing.
Cash Market and Wholesale Trends
Cash trade activity was limited earlier in the week, with a few sales reported in northern regions at $234 to $235 per hundredweight. The weekly Fed Cattle Exchange online auction showed limited movement, with only 38 head sold at $370 dressed out of 1,026 offered.
Wholesale beef prices were mixed in the latest report. Choice boxed beef cutout values dipped 12 cents to $400.42 per hundredweight. Select boxed beef fell 33 cents to $392.78. The spread between Choice and Select grades narrowed to $7.64.
The CME Feeder Cattle Index, a benchmark for cash prices, increased $2.37 to $360.69 as of March 18. Slaughter levels also provided context, with USDA estimating Thursday’s federally inspected cattle slaughter at 106,000 head. The weekly total through Thursday reached 414,000 head, which is 8,000 head below last week and 25,126 head below the same week in 2025.
Disease Monitoring and Price Contracts
Market observers are also monitoring animal health developments. A Thursday update from the USDA’s Animal and Plant Health Inspection Service (APHIS) indicated 1,194 active cases of New World screwworm in Mexico, with 34 cases in the bordering state of Tamaulipas. Such outbreaks can influence trade flows and regional supply dynamics.
Key futures contract prices at the time of reporting showed uniform gains. April 2026 live cattle settled at $234.450, up $1.175. June 2026 live cattle reached $233.525, gaining $1.825. In the feeder cattle market, March 2026 contracts were at $359.075, rising $3.800.
What’s Next for Cattle Markets
The immediate market direction will hinge on the actual figures in the Cattle on Feed report, which provides official confirmation of trader estimates. A significant deviation from expectations for placements, marketings, or on-feed inventory could amplify or reverse the day’s price movements. Longer-term trends will continue to be influenced by feed costs, consumer demand for beef, and overall protein supplies. Market data for this analysis was sourced from CME Group and official USDA reports.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
